Budget & Taxes

This bill authorizes the U.S. Department of the Interior to provide funding, contracts, and technical assistance to Indian Tribes and Tribal organizations for buffalo restoration and management on tribal lands. It requires the Department to consult with tribes on buffalo-related initiatives and allows tribes to receive surplus buffalo from federal land without cost. The law supports tribes in using buffalo for cultural preservation, subsistence, and economic development through programs like meat processing and habitat management. It explicitly protects tribal treaty rights and mandates that all actions align with tribal laws and management plans.

This bill rescinds unused funds from major 2020-2021 COVID relief laws, including the CARES Act, American Rescue Plan, and Paycheck Protection Program funding. It allows limited exceptions for national security programs if the President submits a waiver request within 60 days of enactment. The rescinded funds will remain in the Treasury's general fund specifically for reducing the federal deficit. The bill directly affects federal budget management by redirecting unspent pandemic relief resources.

HR 2981, the USA CAR Act, creates a new federal tax deduction for interest paid on loans used to purchase certain U.S.-assembled vehicles. It directly affects taxpayers who finance new cars meeting specific criteria: the vehicle must be manufactured with final assembly occurring within the United States (as defined by the Automobile Information Disclosure Act). The bill adds a new "qualified automobile interest" category to the tax code, allowing deductions for interest on loans taken out on or after January 1, 2025, for these qualifying vehicles. The deduction applies only to loans secured by the automobile and acquired after the specified date.

HR 4024, the Filling Public Safety Vacancies Act, allocates $162 million in federal funds for law enforcement agencies to hire or rehire additional officers under the Safe Streets Act. This funding directly affects state and local law enforcement agencies that receive grants under the program. Key provisions require agencies using these funds to conduct mandatory background checks and psychological evaluations for new officers, with the grant money covering these costs. The bill focuses on providing resources for officer recruitment while establishing specific hiring requirements for agencies utilizing the funds.

The Freedom from Unfair Gun Taxes Act of 2025 would prohibit states and local governments from imposing taxes on the sale of firearms, ammunition, or firearm parts during interstate or foreign commerce. This bill directly affects state tax policies and manufacturers or dealers selling these items across state lines. It explicitly states that the bill does not change the existing federal tax on firearms and ammunition that funds wildlife conservation programs. The key provision bans state-level taxes for these sales in interstate transactions while preserving current federal funding mechanisms.

This bill allows residents of Puerto Rico to claim the refundable portion of the federal child tax credit, which they are currently excluded from. It amends the tax code to include Puerto Rico residents in the calculation of this credit, removing their current exclusion. The key change modifies Section 24(d)(1) of the Internal Revenue Code to treat Puerto Rico as eligible for the refundable credit, similar to U.S. states. The changes take effect for tax years beginning after December 31, 2024, directly benefiting Puerto Rican families who qualify for the credit.

Lower Health Care Costs Act This bill extends for three years, through 2028, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.  Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit. Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit. The bill extends for three years, through 2028, the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.

The Energy and Water Development and Related Agencies Appropriations Act, 2026 (S 3293) allocates approximately $13.5 billion in federal funding for energy and water infrastructure programs for fiscal year 2026. The bill provides specific funding for Corps of Engineers civil works projects including flood control, river and harbor maintenance, and aquatic ecosystem restoration, as well as for Department of Energy programs focused on energy efficiency, nuclear energy, and grid infrastructure. It establishes the Water Infrastructure Finance and Innovation Program with $5 million allocated to support dam safety projects and levee maintenance for state and local entities. The bill includes detailed provisions governing how funds can be reprogrammed across different programs, with specific limits on reprogramming amounts for various categories. This funding bill directly affects federal agencies like the Army Corps of Engineers, Department of Energy, and Nuclear Regulatory Commission, as well as state and local governments that receive federal funding for water infrastructure projects.

This bill increases tax credits for affordable housing developers who improve energy efficiency in existing buildings. It adds a 30% credit boost (to 130% of rehabilitation costs) for buildings meeting specific energy standards, either by adopting a government-determined advanced construction standard or using a certified retrofit plan that reduces energy use by 50% or more. Buildings in high-cost areas qualify for an additional 30% boost (to 160% of costs) if they meet these standards. The changes apply to housing credit allocations after December 31, 2025, with specific rules for bond-financed projects.

This bill creates a 33% refundable tax credit for flood insurance premiums paid by homeowners for their primary residences through the National Flood Insurance Program. It directly affects homeowners in flood-prone areas who purchase required flood insurance, with the credit phased out for higher-income households (above 350% of the federal poverty line). The credit reduces income tax liability and is refundable, meaning it can result in a cash payment even if no tax is owed. The bill also prevents deducting premiums covered by the credit and establishes advance payments through the IRS to provide upfront financial assistance.