Budget & Taxes

S 3030, the Pay Our Military Act of 2025, ensures that active-duty military members, reservists, civilian Defense personnel, and supporting contractors continue receiving pay and essential benefits during any funding gap in fiscal year 2026. It appropriates necessary funds from the Treasury to cover pay, allowances, housing, travel, and other payments if Congress hasn’t passed full-year appropriations by September 30, 2026. These funds are charged to future appropriations when regular funding is enacted, preventing delays in military compensation. The bill takes effect retroactively as of September 30, 2025, to cover any missed payments during the prior fiscal year.

# Summary of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2026 This comprehensive appropriations act provides funding for the U.S. Department of Agriculture, Food and Drug Administration, and related agencies for fiscal year 2026. Key elements include: ## Major Funding Areas - **Rural Development**: Significant funding for rural housing, water and waste disposal systems, broadband access, and business development programs - **Food and Nutrition**: Funding for school meal programs, food assistance, and child nutrition initiatives - **Agricultural Programs**: Support for crop insurance, conservation, research, and marketing - **Food Safety**: Resources for FDA inspections and enforcement ## Key Provisions 1. **New Programs**: - $2 million for a Bison Production and Marketing Grant Program - $4 million for a new Energy Circuit Rider pilot program - $6 million to continue the Institute for Rural Partnerships - $700,000 for tribal meat inspection fee coverage 2. **Restrictions**: - Prohibits using funds to close or consolidate USDA laboratory locations without congressional approval - Bans funds for horse inspections under certain acts - Limits use of funds for certain travel and administrative activities - Requires specific notification for large grant terminations ($1 million+) 3. **Program Changes**: - Updates to hemp definitions and regulations (Section 781) - Modifications to the Rural Business Program (Section 760) - Changes to the definition of "hemp" and "cannabis" for regulatory purposes - Updates to the National Bioengineered Food Disclosure Standard 4. **Allocation Requirements**: - Requires at least 10% of certain funds to be allocated for persistent poverty counties - Mandates specific reporting for FDA user fee programs - Requires notification for certain program changes 5. **Specific Restrictions**: - Prohibits using funds to procure poultry or seafood from China for school meal programs - Limits funds for certain FDA activities related to e-cigarettes - Prohibits funds for certain types of enforcement actions until specific data is available This act also includes numerous technical amendments to existing laws and establishes new reporting requirements for various programs across the Department of Agriculture.

The American Housing and Economic Mobility Act of 2025 aims to increase housing affordability and accessibility through multiple provisions. It expands Fair Housing protections to include gender identity, sexual orientation, marital status, source of income, and veteran status, making discrimination based on these characteristics illegal. The bill includes significant funding mechanisms for affordable housing infrastructure and requires twice as many accessible dwelling units in housing assisted under the Act. It also makes substantial changes to estate tax rules, including higher tax rates for large estates and elimination of certain exemptions. These provisions collectively seek to reduce housing discrimination, increase access to affordable housing, and generate revenue for housing programs.

The Protect Our Hospitals Act (HR 4807) repeals a specific provision (Section 71115 of Public Law 119-21) that altered Medicaid provider tax rules. This bill restores the prior tax structure for Medicaid providers, including hospitals and clinics that accept Medicaid, returning them to the tax treatment that existed before the change. As a result, these providers will no longer be subject to the modified tax rules enacted by the repealed provision. The bill does not affect Medicaid eligibility, benefits, or coverage - it solely reverts a tax policy change without introducing new requirements.

The Billionaires Income Tax Act (S 2845) would require high-net-worth individuals with at least $1 billion in assets or $100 million in annual income (or $500 million/$50 million for married filing separately) to pay taxes annually on investment gains rather than deferring taxes until assets are sold. It implements "mark-to-market" taxation for tradable assets like stocks and closes loopholes that allow tax-free transfers of assets to heirs, eliminating strategies like "buy, borrow, die." The bill targets "applicable taxpayers" by requiring annual tax payments on investment gains and modifies special tax provisions for investments in small business stock and qualified opportunity funds. The law would apply to individuals meeting either the asset or income test for three consecutive years, with specific rules for married couples and trusts.

S 2492, the Fiscal Contingency Preparedness Act, requires the Treasury Secretary and OMB Director to annually assess how the federal government would respond to major fiscal shocks like recessions, pandemics, natural disasters, cyberattacks, or financial crises. The bill mandates they evaluate both short-term and long-term fiscal impacts of these events, including historical responses. This assessment must be included in an existing annual Treasury report and will be reviewed annually by the Government Accountability Office (GAO). The law directly affects federal agencies responsible for fiscal planning (Treasury and OMB) and aims to improve preparedness for national economic disruptions.

The ACE Act expands 529 education savings accounts to cover elementary and secondary school expenses, including homeschooling, tutoring, educational therapies, and materials, for families enrolled in public, private, or religious schools. It increases the annual distribution limit from $10,000 to $20,000 for K-12 expenses and adds a $20,000 annual gift tax exclusion for contributions to these accounts. The bill also requires states with tax-exempt bonds for education to have school choice programs (like vouchers or scholarships) that meet specific eligibility and funding criteria. These provisions directly affect families using 529 plans for K-12 education and states administering education funding. The changes apply to distributions and gifts after 2026, with bond restrictions taking effect upon enactment.

The Jumpstart Savings Act creates a new tax-advantaged savings program for state-run accounts that help individuals save for career-specific training and expenses. It directly affects workers, apprentices, and students pursuing certified trades or occupations by allowing tax-free contributions to accounts covering costs like community college tuition, apprenticeship fees, certification exams, trade tools, and business startup expenses. The bill enables rollovers from existing 529 college savings plans into these accounts and requires states to administer the programs with reporting rules similar to current 529 plans. The program will apply to taxable years beginning after December 31, 2025, and is designed to support career advancement in regulated fields.

HR 904, titled "No Tax on Social Security," would amend the tax code to exclude Social Security benefits from taxable income for future tax years. This change would directly affect millions of Social Security recipients, including retirees, disabled individuals, and survivors, who currently may pay federal income tax on a portion of their benefits. The bill includes a funding provision to appropriate money to Social Security trust funds, replacing revenue lost from the tax exclusion. The policy would take effect for taxable years beginning after the bill's enactment.

The Bonuses for Cost-Cutters Act of 2025 creates a program to reward federal employees who identify unnecessary spending in agency budgets. Employees can report funds not required for agency operations (called "surplus salaries and expenses funds"), and agencies must verify these savings through their Inspector General or designated staff. If verified, agencies transfer the funds to the Treasury for deficit reduction, while retaining up to 10% of the amount to pay cash awards to the employees who identified the savings. Agencies must submit annual reports on savings and awards to the Treasury, which then shares this data with Congress. The program expires 6 years after enactment.