Budget & Taxes

This bill expands tax-advantaged health accounts to cover medical expenses for parents. It modifies federal tax rules for Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Archer MSAs, allowing adult children to use these accounts to pay for their parents' medical care without triggering tax penalties. Specifically, it adds parents to the list of eligible family members under existing IRS definitions. The changes apply to expenses incurred after December 31, 2025, directly benefiting caregivers who pay for their aging parents' healthcare costs.

This bill increases the annual limit on the tax credit for qualified railroad track maintenance expenses (also referred to as the short line railroad tax credit) and expands eligibility for claiming the credit. Under current law, the tax credit is limited each tax year to $3,500 multiplied by the sum of the number of miles of railroad track owned or leased by the taxpayer (miles owned or leased) and the number of railroad track miles assigned to the taxpayer by a Class II or III railroad (miles assigned). This bill increases the annual limit to $6,100 multiplied by the sum of miles owned or leased and miles assigned. The $6,100 amount used in the calculation of the tax credit limit is adjusted for inflation for tax years beginning after 2025. The bill also expands eligibility for the tax credit to include gross expenses for maintaining railroad tracks owned or leased as of January 1, 2024. Under current law, the tax credit is limited to gross expenses for maintaining railroad tracks owned or leased as of January 1, 2015.

HR 486, the Young Americans Financial Literacy Act, authorizes $27.5 million to $55 million annually through 2029 to fund competitive grants for centers of excellence focused on financial literacy education for individuals aged 8-24. These centers, established by eligible institutions like schools, nonprofits, or financial organizations, must develop research-based programs covering budgeting, debt management, student loan guidance, and avoiding pitfalls like predatory lending. The bill specifically requires programs to address at-risk populations, include evidence-based teaching methods, and serve groups such as high school graduates, college students, young families, and military personnel. It mandates annual reporting to Congress on grant recipients and the populations they serve, with funding ending in 2029.

This bill requires Congress to pass the annual budget resolution and all funding bills by October 1 each year. If Congress misses this deadline, members of Congress (excluding the Vice President) would not receive salary for the period of non-compliance, and this pay would not be retroactively issued. The Budget Chairs of each chamber would determine compliance and certify pay withholding. The law takes effect on September 29, 2027.

This bill targets tax avoidance tactics known as "basis shifting" in partnerships involving related parties. It requires partners to recognize gain when receiving property distributions from partnerships where related parties are involved, preventing them from artificially increasing the tax basis of partnership assets to reduce future taxable gains. The law defines "applicable partnerships" broadly (including any with related-party transactions) but excludes qualifying small businesses meeting gross receipts tests. Key provisions mandate that basis adjustments for distributed property must align with recognized gain, and increase penalties for understatements related to these transactions. It directly affects partnerships engaging in related-party distributions that previously allowed basis-shifting to defer or avoid taxes.

The American Innovation Act (S 1276) authorizes multi-year funding for key federal science and technology agencies, including the National Science Foundation, Department of Energy's Office of Science, Department of Defense science programs, National Institute of Standards and Technology, and NASA's Science Mission Directorate. It sets specific annual funding levels from fiscal years 2026 through 2035, with automatic annual increases starting in 2036 based on the Consumer Price Index to adjust for inflation. The bill also exempts these appropriations from automatic budget cuts (sequestration) under the Balanced Budget Act. This funding directly affects the operations and research capabilities of these federal agencies.

Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025 This bill establishes a new investment tax credit in the amount of 30% of the basis of any hydropower improvement property. The bill defines hydropower improvement property as property that adds or improves fish passage at a qualified dam; maintains or improves the quality of the water retained or released by a qualified dam; promotes downstream sediment transport and habitat maintenance; upgrades, repairs, or reconstructs a qualified dam to meet safety and security standards; improves public uses of, and access to, public waterways impacted by a qualified dam; removes an obsolete river obstruction; or places into service an approved remote dam. Further, written approval for hydropower improvement property must be obtained from the Federal Energy Regulatory Commission or state or local officials prior to January 1, 2035. The bill also allows an election to claim the investment tax credit for qualified progress expenses for some types of hydropower improvement property in advance of such property being placed into service. Any investment tax credit amount claimed for qualified progress expenses reduces the amount of the investment tax credit that may be claimed once the hydropower improvement property is placed into service.  The bill authorizes certain entities, including tax-exempt and governmental entities, to treat the investment tax credit for hydropower improvement property as a payment of tax and receive a refund of any overpayment (also known as elective pay).  Finally, the investment tax credit for hydropower improvement property may be transferred (i.e., sold).

This bill provides federal funding for transportation projects in cities hosting major international sporting events like the Olympics, Paralympics, or FIFA World Cup. It authorizes up to $50 million annually for grants to states, tribes, and local governments (or their planning organizations) to fund permanent transportation infrastructure and planning within 100 miles of the event site, excluding temporary facilities. The bill also mandates studies by the Commerce Department to examine how hosting these events affects international and domestic travel, tourism business revenue, and employment, with reports due 180 days after the events conclude. These provisions directly support cities bidding to host or already hosting such events, focusing on long-term transportation needs and economic impact analysis.

This bill creates a tax incentive program to increase ownership of broadcast stations by women and minorities (defined as "socially disadvantaged individuals"). It establishes an FCC certificate program for qualifying sales of broadcast stations that result in ownership by these groups, requiring at least 50% ownership and 2-year minimum holding period. The bill provides tax benefits including nonrecognition of gain or loss for qualifying transactions and a tax credit for contributions to organizations training socially disadvantaged individuals in broadcast management. The FCC must report to Congress biennially on progress toward increasing diversity in broadcast ownership, based on data collected through Form 323.

This bill reauthorizes two existing federal diabetes programs through 2027. It provides $160 million annually for fiscal years 2026 and 2027 for the Special Diabetes Program for Type I Diabetes (serving people with Type I diabetes) and the Special Diabetes Program for Indians (serving Native American communities through Indian Health Services). A final $40 million is allocated for October-December 2027 for both programs, with all funds remaining available until expended. The bill extends current funding levels without changing program eligibility or structure.