Public Law 119–21, Reconciliation Pursuant to H. Con. Res. 14 (H.R. 1) — 119th Congress
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- Congressional materials
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- 407409 2026 04 13 Chairman Williams Op Ed Working Families Tax Cuts Att0
- Date
- 2026-04-13
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- 407409 2026 04 13 Chairman Williams Op Ed Working Families Tax Cuts Att0
Public Law 119–21, Reconciliation Pursuant to H. Con. Res. 14 (H.R. 1) — 119th Congress public court record for 407409 2026 04 13 Chairman Williams Op Ed Working Fam
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PUBLIC LAW 119–21—JULY 4, 2025
139 STAT. 72 PUBLIC LAW 119–21—JULY 4, 2025
Public Law 119–21
119th Congress
An Act
July 4, 2025
To provide for reconciliation pursuant to title II of H. Con. Res. 14.
[H.R. 1]
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I—COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A—Nutrition
Sec. 10101. Re-evaluation of thrifty food plan.
Sec. 10102. Modifications to SNAP work requirements for able-bodied adults.
Sec. 10103. Availability of standard utility allowances based on receipt of energy
assistance.
Sec. 10104. Restrictions on internet expenses.
Sec. 10105. Matching funds requirements.
Sec. 10106. Administrative cost sharing.
Sec. 10107. National education and obesity prevention grant program.
Sec. 10108. Alien SNAP eligibility.
Subtitle B—Forestry
Sec. 10201. Rescission of amounts for forestry.
Subtitle C—Commodities
Sec. 10301. Effective reference price; reference price.
Sec. 10302. Base acres.
Sec. 10303. Producer election.
Sec. 10304. Price loss coverage.
Sec. 10305. Agriculture risk coverage.
Sec. 10306. Equitable treatment of certain entities.
Sec. 10307. Payment limitations.
Sec. 10308. Adjusted gross income limitation.
Sec. 10309. Marketing loans.
Sec. 10310. Repayment of marketing loans.
Sec. 10311. Economic adjustment assistance for textile mills.
Sec. 10312. Sugar program updates.
Sec. 10313. Dairy policy updates.
Sec. 10314. Implementation.
Subtitle D—Disaster Assistance Programs
Sec. 10401. Supplemental agricultural disaster assistance.
Subtitle E—Crop Insurance
Sec. 10501. Beginning farmer and rancher benefit.
Sec. 10502. Area-based crop insurance coverage and affordability.
Sec. 10503. Administrative and operating expense adjustments.
Sec. 10504. Premium support.
Sec. 10505. Program compliance and integrity.
Sec. 10506. Reviews, compliance, and integrity.
Sec. 10507. Poultry insurance pilot program.
Subtitle F—Additional Investments in Rural America
Sec. 10601. Conservation.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 73
Sec. 10602. Supplemental agricultural trade promotion program.
Sec. 10603. Nutrition.
Sec. 10604. Research.
Sec. 10605. Energy.
Sec. 10606. Horticulture.
Sec. 10607. Miscellaneous.
TITLE II—COMMITTEE ON ARMED SERVICES
Sec. 20001. Enhancement of Department of Defense resources for improving the
quality of life for military personnel.
Sec. 20002. Enhancement of Department of Defense resources for shipbuilding.
Sec. 20003. Enhancement of Department of Defense resources for integrated air
and missile defense.
Sec. 20004. Enhancement of Department of Defense resources for munitions and
defense supply chain resiliency.
Sec. 20005. Enhancement of Department of Defense resources for scaling low-cost
weapons into production.
Sec. 20006. Enhancement of Department of Defense resources for improving the ef-
ficiency and cybersecurity of the Department of Defense.
Sec. 20007. Enhancement of Department of Defense resources for air superiority.
Sec. 20008. Enhancement of resources for nuclear forces.
Sec. 20009. Enhancement of Department of Defense resources to improve capabili-
ties of United States Indo-Pacific Command.
Sec. 20010. Enhancement of Department of Defense resources for improving the
readiness of the Department of Defense.
Sec. 20011. Improving Department of Defense border support and counter-drug
missions.
Sec. 20012. Department of Defense oversight.
Sec. 20013. Military construction projects authorized.
TITLE III—COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection.
Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program for Multi-
family Housing.
Sec. 30003. Securities and Exchange Commission Reserve Fund.
Sec. 30004. Appropriations for Defense Production Act.
TITLE IV—COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
Sec. 40001. Coast Guard mission readiness.
Sec. 40002. Spectrum auctions.
Sec. 40003. Air traffic control improvements.
Sec. 40004. Space launch and reentry licensing and permitting user fees.
Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program.
Sec. 40006. Corporate average fuel economy civil penalties.
Sec. 40007. Payments for lease of Metropolitan Washington Airports.
Sec. 40008. Rescission of certain amounts for the National Oceanic and Atmos-
pheric Administration.
Sec. 40009. Reduction in annual transfers to Travel Promotion Fund.
Sec. 40010. Treatment of unobligated funds for alternative fuel and low-emission
aviation technology.
Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply Chain
Innovation Fund.
TITLE V—COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A—Oil and Gas Leasing
Sec. 50101. Onshore oil and gas leasing.
Sec. 50102. Offshore oil and gas leasing.
Sec. 50103. Royalties on extracted methane.
Sec. 50104. Alaska oil and gas leasing.
Sec. 50105. National Petroleum Reserve–Alaska.
Subtitle B—Mining
Sec. 50201. Coal leasing.
Sec. 50202. Coal royalty.
Sec. 50203. Leases for known recoverable coal resources.
Sec. 50204. Authorization to mine Federal coal.
Subtitle C—Lands
Sec. 50301. Timber sales and long-term contracting for the Forest Service and the
Bureau of Land Management.
139 STAT. 74 PUBLIC LAW 119–21—JULY 4, 2025
Sec. 50302. Renewable energy fees on Federal land.
Sec. 50303. Renewable energy revenue sharing.
Sec. 50304. Rescission of National Park Service and Bureau of Land Management
funds.
Sec. 50305. Celebrating America’s 250th anniversary.
Subtitle D—Energy
Sec. 50401. Strategic Petroleum Reserve.
Sec. 50402. Repeals; rescissions.
Sec. 50403. Energy dominance financing.
Sec. 50404. Transformational artificial intelligence models.
Subtitle E—Water
Sec. 50501. Water conveyance and surface water storage enhancement.
TITLE VI—COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
Sec. 60001. Rescission of funding for clean heavy-duty vehicles.
Sec. 60002. Repeal of Greenhouse Gas Reduction Fund.
Sec. 60003. Rescission of funding for diesel emissions reductions.
Sec. 60004. Rescission of funding to address air pollution.
Sec. 60005. Rescission of funding to address air pollution at schools.
Sec. 60006. Rescission of funding for the low emissions electricity program.
Sec. 60007. Rescission of funding for section 211(o) of the Clean Air Act.
Sec. 60008. Rescission of funding for implementation of the American Innovation
and Manufacturing Act.
Sec. 60009. Rescission of funding for enforcement technology and public informa-
tion.
Sec. 60010. Rescission of funding for greenhouse gas corporate reporting.
Sec. 60011. Rescission of funding for environmental product declaration assistance.
Sec. 60012. Rescission of funding for methane emissions and waste reduction incen-
tive program for petroleum and natural gas systems.
Sec. 60013. Rescission of funding for greenhouse gas air pollution plans and imple-
mentation grants.
Sec. 60014. Rescission of funding for environmental protection agency efficient, ac-
curate, and timely reviews.
Sec. 60015. Rescission of funding for low-embodied carbon labeling for construction
materials.
Sec. 60016. Rescission of funding for environmental and climate justice block
grants.
Sec. 60017. Rescission of funding for ESA recovery plans.
Sec. 60018. Rescission of funding for environmental and climate data collection.
Sec. 60019. Rescission of neighborhood access and equity grant program.
Sec. 60020. Rescission of funding for Federal building assistance.
Sec. 60021. Rescission of funding for low-carbon materials for Federal buildings.
Sec. 60022. Rescission of funding for GSA emerging and sustainable technologies.
Sec. 60023. Rescission of environmental review implementation funds.
Sec. 60024. Rescission of low-carbon transportation materials grants.
Sec. 60025. John F. Kennedy Center for the Performing Arts.
Sec. 60026. Project sponsor opt-in fees for environmental reviews.
TITLE VII—FINANCE
Subtitle A—Tax
Sec. 70001. References to the Internal Revenue Code of 1986, etc.
CHAPTER 1—PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND
WORKERS
Sec. 70101. Extension and enhancement of reduced rates.
Sec. 70102. Extension and enhancement of increased standard deduction.
Sec. 70103. Termination of deduction for personal exemptions other than tem-
porary senior deduction.
Sec. 70104. Extension and enhancement of increased child tax credit.
Sec. 70105. Extension and enhancement of deduction for qualified business income.
Sec. 70106. Extension and enhancement of increased estate and gift tax exemption
amounts.
Sec. 70107. Extension of increased alternative minimum tax exemption amounts
and modification of phaseout thresholds.
Sec. 70108. Extension and modification of limitation on deduction for qualified resi-
dence interest.
Sec. 70109. Extension and modification of limitation on casualty loss deduction.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 75
Sec. 70110. Termination of miscellaneous itemized deductions other than educator
expenses.
Sec. 70111. Limitation on tax benefit of itemized deductions.
Sec. 70112. Extension and modification of qualified transportation fringe benefits.
Sec. 70113. Extension and modification of limitation on deduction and exclusion for
moving expenses.
Sec. 70114. Extension and modification of limitation on wagering losses.
Sec. 70115. Extension and enhancement of increased limitation on contributions to
ABLE accounts.
Sec. 70116. Extension and enhancement of savers credit allowed for ABLE con-
tributions.
Sec. 70117. Extension of rollovers from qualified tuition programs to ABLE ac-
counts permitted.
Sec. 70118. Extension of treatment of certain individuals performing services in the
Sinai Peninsula and enhancement to include additional areas.
Sec. 70119. Extension and modification of exclusion from gross income of student
loans discharged on account of death or disability.
Sec. 70120. Limitation on individual deductions for certain state and local taxes,
etc.
CHAPTER 2—DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE-
CLASS TAX RELIEF
Sec. 70201. No tax on tips.
Sec. 70202. No tax on overtime.
Sec. 70203. No tax on car loan interest.
Sec. 70204. Trump accounts and contribution pilot program.
CHAPTER 3—ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB
CREATORS
SUBCHAPTER A—PERMANENT U.S. BUSINESS TAX REFORM AND BOOSTING DOMESTIC
INVESTMENT
Sec. 70301. Full expensing for certain business property.
Sec. 70302. Full expensing of domestic research and experimental expenditures.
Sec. 70303. Modification of limitation on business interest.
Sec. 70304. Extension and enhancement of paid family and medical leave credit.
Sec. 70305. Exceptions from limitations on deduction for business meals.
Sec. 70306. Increased dollar limitations for expensing of certain depreciable busi-
ness assets.
Sec. 70307. Special depreciation allowance for qualified production property.
Sec. 70308. Enhancement of advanced manufacturing investment credit.
Sec. 70309. Spaceports are treated like airports under exempt facility bond rules.
SUBCHAPTER B—PERMANENT AMERICA-FIRST INTERNATIONAL TAX REFORMS
PART I—FOREIGN TAX CREDIT
Sec. 70311. Modifications related to foreign tax credit limitation.
Sec. 70312. Modifications to determination of deemed paid credit for taxes properly
attributable to tested income.
Sec. 70313. Sourcing certain income from the sale of inventory produced in the
United States.
PART II—FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED
INCOME
Sec. 70321. Modification of deduction for foreign-derived deduction eligible income
and net CFC tested income.
Sec. 70322. Determination of deduction eligible income.
Sec. 70323. Rules related to deemed intangible income.
PART III—BASE EROSION MINIMUM TAX
Sec. 70331. Extension and modification of base erosion minimum tax amount.
PART IV—BUSINESS INTEREST LIMITATION
Sec. 70341. Coordination of business interest limitation with interest capitalization
provisions.
Sec. 70342. Definition of adjusted taxable income for business interest limitation.
PART V—OTHER INTERNATIONAL TAX REFORMS
Sec. 70351. Permanent extension of look-thru rule for related controlled foreign cor-
porations.
139 STAT. 76 PUBLIC LAW 119–21—JULY 4, 2025
Sec. 70352. Repeal of election for 1-month deferral in determination of taxable year
of specified foreign corporations.
Sec. 70353. Restoration of limitation on downward attribution of stock ownership
in applying constructive ownership rules.
Sec. 70354. Modifications to pro rata share rules.
CHAPTER 4—INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL
BUSINESSES
SUBCHAPTER A—PERMANENT INVESTMENTS IN FAMILIES AND CHILDREN
Sec. 70401. Enhancement of employer-provided child care credit.
Sec. 70402. Enhancement of adoption credit.
Sec. 70403. Recognizing Indian tribal governments for purposes of determining
whether a child has special needs for purposes of the adoption credit.
Sec. 70404. Enhancement of the dependent care assistance program.
Sec. 70405. Enhancement of child and dependent care tax credit.
SUBCHAPTER B—PERMANENT INVESTMENTS IN STUDENTS AND REFORMS TO TAX-
EXEMPT INSTITUTIONS
Sec. 70411. Tax credit for contributions of individuals to scholarship granting orga-
nizations.
Sec. 70412. Exclusion for employer payments of student loans.
Sec. 70413. Additional expenses treated as qualified higher education expenses for
purposes of 529 accounts.
Sec. 70414. Certain postsecondary credentialing expenses treated as qualified high-
er education expenses for purposes of 529 accounts.
Sec. 70415. Modification of excise tax on investment income of certain private col-
leges and universities.
Sec. 70416. Expanding application of tax on excess compensation within tax-exempt
organizations.
SUBCHAPTER C—PERMANENT INVESTMENTS IN COMMUNITY DEVELOPMENT
Sec. 70421. Permanent renewal and enhancement of opportunity zones.
Sec. 70422. Permanent enhancement of low-income housing tax credit.
Sec. 70423. Permanent extension of new markets tax credit.
Sec. 70424. Permanent and expanded reinstatement of partial deduction for chari-
table contributions of individuals who do not elect to itemize.
Sec. 70425. 0.5 percent floor on deduction of contributions made by individuals.
Sec. 70426. 1-percent floor on deduction of charitable contributions made by cor-
porations.
Sec. 70427. Permanent increase in limitation on cover over of tax on distilled spir-
its.
Sec. 70428. Nonprofit community development activities in remote native villages.
Sec. 70429. Adjustment of charitable deduction for certain expenses incurred in
support of Native Alaskan subsistence whaling.
Sec. 70430. Exception to percentage of completion method of accounting for certain
residential construction contracts.
SUBCHAPTER D—PERMANENT INVESTMENTS IN SMALL BUSINESS AND RURAL AMERICA
Sec. 70431. Expansion of qualified small business stock gain exclusion.
Sec. 70432. Repeal of revision to de minimis rules for third party network trans-
actions.
Sec. 70433. Increase in threshold for requiring information reporting with respect
to certain payees.
Sec. 70434. Treatment of certain qualified sound recording productions.
Sec. 70435. Exclusion of interest on loans secured by rural or agricultural real
property.
Sec. 70436. Reduction of transfer and manufacturing taxes for certain devices.
Sec. 70437. Treatment of capital gains from the sale of certain farmland property.
Sec. 70438. Extension of rules for treatment of certain disaster-related personal
casualty losses.
Sec. 70439. Restoration of taxable REIT subsidiary asset test.
CHAPTER 5—ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST
ENERGY, AND OTHER REFORMS
SUBCHAPTER A—TERMINATION OF GREEN NEW DEAL SUBSIDIES
Sec. 70501. Termination of previously-owned clean vehicle credit.
Sec. 70502. Termination of clean vehicle credit.
Sec. 70503. Termination of qualified commercial clean vehicles credit.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 77
Sec. 70504. Termination of alternative fuel vehicle refueling property credit.
Sec. 70505. Termination of energy efficient home improvement credit.
Sec. 70506. Termination of residential clean energy credit.
Sec. 70507. Termination of energy efficient commercial buildings deduction.
Sec. 70508. Termination of new energy efficient home credit.
Sec. 70509. Termination of cost recovery for energy property.
Sec. 70510. Modifications of zero-emission nuclear power production credit.
Sec. 70511. Termination of clean hydrogen production credit.
Sec. 70512. Termination and restrictions on clean electricity production credit.
Sec. 70513. Termination and restrictions on clean electricity investment credit.
Sec. 70514. Phase-out and restrictions on advanced manufacturing production cred-
it.
Sec. 70515. Restriction on the extension of advanced energy project credit program.
SUBCHAPTER B—ENHANCEMENT OF AMERICA-FIRST ENERGY POLICY
Sec. 70521. Extension and modification of clean fuel production credit.
Sec. 70522. Restrictions on carbon oxide sequestration credit.
Sec. 70523. Intangible drilling and development costs taken into account for pur-
poses of computing adjusted financial statement income.
Sec. 70524. Income from hydrogen storage, carbon capture, advanced nuclear, hy-
dropower, and geothermal energy added to qualifying income of certain
publicly traded partnerships.
Sec. 70525. Allow for payments to certain individuals who dye fuel.
SUBCHAPTER C—OTHER REFORMS
Sec. 70531. Modifications to de minimis entry privilege for commercial shipments.
CHAPTER 6—ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND
OTHER REFORMS
Sec. 70601. Modification and extension of limitation on excess business losses of
noncorporate taxpayers.
Sec. 70602. Treatment of payments from partnerships to partners for property or
services.
Sec. 70603. Excessive employee remuneration from controlled group members and
allocation of deduction.
Sec. 70604. Excise tax on certain remittance transfers.
Sec. 70605. Enforcement provisions with respect to COVID-related employee reten-
tion credits.
Sec. 70606. Social security number requirement for American Opportunity and
Lifetime Learning credits.
Sec. 70607. Task force on the replacement of Direct File.
Subtitle B—Health
CHAPTER 1—MEDICAID
SUBCHAPTER A—REDUCING FRAUD AND IMPROVING ENROLLMENT PROCESSES
Sec. 71101. Moratorium on implementation of rule relating to eligibility and enroll-
ment in Medicare Savings Programs.
Sec. 71102. Moratorium on implementation of rule relating to eligibility and enroll-
ment for Medicaid, CHIP, and the Basic Health Program.
Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP pro-
grams.
Sec. 71104. Ensuring deceased individuals do not remain enrolled.
Sec. 71105. Ensuring deceased providers do not remain enrolled.
Sec. 71106. Payment reduction related to certain erroneous excess payments under
Medicaid.
Sec. 71107. Eligibility redeterminations.
Sec. 71108. Revising home equity limit for determining eligibility for long-term care
services under the Medicaid program.
Sec. 71109. Alien Medicaid eligibility.
Sec. 71110. Expansion FMAP for emergency Medicaid.
SUBCHAPTER B—PREVENTING WASTEFUL SPENDING
Sec. 71111. Moratorium on implementation of rule relating to staffing standards for
long-term care facilities under the Medicare and Medicaid programs.
Sec. 71112. Reducing State Medicaid costs.
Sec. 71113. Federal payments to prohibited entities.
SUBCHAPTER C—STOPPING ABUSIVE FINANCING PRACTICES
Sec. 71114. Sunsetting increased FMAP incentive.
139 STAT. 78 PUBLIC LAW 119–21—JULY 4, 2025
Sec. 71115. Provider taxes.
Sec. 71116. State directed payments.
Sec. 71117. Requirements regarding waiver of uniform tax requirement for Med-
icaid provider tax.
Sec. 71118. Requiring budget neutrality for Medicaid demonstration projects under
section 1115.
SUBCHAPTER D—INCREASING PERSONAL ACCOUNTABILITY
Sec. 71119. Requirement for States to establish Medicaid community engagement
requirements for certain individuals.
Sec. 71120. Modifying cost sharing requirements for certain expansion individuals
under the Medicaid program.
SUBCHAPTER E—EXPANDING ACCESS TO CARE
Sec. 71121. Making certain adjustments to coverage of home or community-based
services under Medicaid.
CHAPTER 2—MEDICARE
SUBCHAPTER A—STRENGTHENING ELIGIBILITY REQUIREMENTS
Sec. 71201. Limiting Medicare coverage of certain individuals.
SUBCHAPTER B—IMPROVING SERVICES FOR SENIORS
Sec. 71202. Temporary payment increase under the medicare physician fee sched-
ule to account for exceptional circumstances.
Sec. 71203. Expanding and clarifying the exclusion for orphan drugs under the
Drug Price Negotiation Program.
CHAPTER 3—HEALTH TAX
SUBCHAPTER A—IMPROVING ELIGIBILITY CRITERIA
Sec. 71301. Permitting premium tax credit only for certain individuals.
Sec. 71302. Disallowing premium tax credit during periods of medicaid ineligibility
due to alien status.
SUBCHAPTER B—PREVENTING WASTE, FRAUD, AND ABUSE
Sec. 71303. Requiring verification of eligibility for premium tax credit.
Sec. 71304. Disallowing premium tax credit in case of certain coverage enrolled in
during special enrollment period.
Sec. 71305. Eliminating limitation on recapture of advance payment of premium
tax credit.
SUBCHAPTER C—ENHANCING CHOICE FOR PATIENTS
Sec. 71306. Permanent extension of safe harbor for absence of deductible for tele-
health services.
Sec. 71307. Allowance of bronze and catastrophic plans in connection with health
savings accounts.
Sec. 71308. Treatment of direct primary care service arrangements.
CHAPTER 4—PROTECTING RURAL HOSPITALS AND PROVIDERS
Sec. 71401. Rural Health Transformation Program.
Subtitle C—Increase in Debt Limit
Sec. 72001. Modification of limitation on the public debt.
Subtitle D—Unemployment
Sec. 73001. Ending unemployment payments to jobless millionaires.
TITLE VIII—COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
Subtitle A—Exemption of Certain Assets
Sec. 80001. Exemption of certain assets.
Subtitle B—Loan Limits
Sec. 81001. Establishment of loan limits for graduate and professional students
and parent borrowers; termination of graduate and professional PLUS
loans.
Subtitle C—Loan Repayment
Sec. 82001. Loan repayment.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 79
Sec. 82002. Deferment; forbearance.
Sec. 82003. Loan rehabilitation.
Sec. 82004. Public service loan forgiveness.
Sec. 82005. Student loan servicing.
Subtitle D—Pell Grants
Sec. 83001. Eligibility.
Sec. 83002. Workforce Pell Grants.
Sec. 83003. Pell shortfall.
Sec. 83004. Federal Pell Grant exclusion relating to other grant aid.
Subtitle E—Accountability
Sec. 84001. Ineligibility based on low earning outcomes.
Subtitle F—Regulatory Relief
Sec. 85001. Delay of rule relating to borrower defense to repayment.
Sec. 85002. Delay of rule relating to closed school discharges.
Subtitle G—Garden of Heroes
Sec. 86001. Garden of Heroes.
Subtitle H—Office of Refugee Resettlement
Sec. 87001. Potential sponsor vetting for unaccompanied alien children appropria-
tion.
TITLE IX—COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL
AFFAIRS
Subtitle A—Homeland Security Provisions
Sec. 90001. Border infrastructure and wall system.
Sec. 90002. U.S. Customs and Border Protection personnel, fleet vehicles, and fa-
cilities.
Sec. 90003. Detention capacity.
Sec. 90004. Border security, technology, and screening.
Sec. 90005. State and local assistance.
Sec. 90006. Presidential residence protection.
Sec. 90007. Department of Homeland Security appropriations for border support.
Subtitle B—Governmental Affairs Provisions
Sec. 90101. FEHB improvements.
Sec. 90102. Pandemic Response Accountability Committee.
Sec. 90103. Appropriation for the Office of Management and Budget.
TITLE X—COMMITTEE ON THE JUDICIARY
Subtitle A—Immigration and Law Enforcement Matters
PART I—IMMIGRATION FEES
Sec. 100001. Applicability of the immigration laws.
Sec. 100002. Asylum fee.
Sec. 100003. Employment authorization document fees.
Sec. 100004. Immigration parole fee.
Sec. 100005. Special immigrant juvenile fee.
Sec. 100006. Temporary protected status fee.
Sec. 100007. Visa integrity fee.
Sec. 100008. Form I–94 fee.
Sec. 100009. Annual asylum fee.
Sec. 100010. Fee relating to renewal and extension of employment authorization for
parolees.
Sec. 100011. Fee relating to renewal or extension of employment authorization for
asylum applicants.
Sec. 100012. Fee relating to renewal and extension of employment authorization for
aliens granted temporary protected status.
Sec. 100013. Fees relating to applications for adjustment of status.
Sec. 100014. Electronic System for Travel Authorization fee.
Sec. 100015. Electronic Visa Update System fee.
Sec. 100016. Fee for aliens ordered removed in absentia.
Sec. 100017. Inadmissible alien apprehension fee.
Sec. 100018. Amendment to authority to apply for asylum.
PART II—IMMIGRATION AND LAW ENFORCEMENT FUNDING
Sec. 100051. Appropriation for the Department of Homeland Security.
139 STAT. 80 PUBLIC LAW 119–21—JULY 4, 2025
Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement.
Sec. 100053. Appropriation for Federal Law Enforcement Training Centers.
Sec. 100054. Appropriation for the Department of Justice.
Sec. 100055. Bridging Immigration-related Deficits Experienced Nationwide Reim-
bursement Fund.
Sec. 100056. Appropriation for the Bureau of Prisons.
Sec. 100057. Appropriation for the United States Secret Service.
Subtitle B—Judiciary Matters
Sec. 100101. Appropriation to the Administrative Office of the United States
Courts.
Sec. 100102. Appropriation to the Federal Judicial Center.
Subtitle C—Radiation Exposure Compensation Matters
Sec. 100201. Extension of fund.
Sec. 100202. Claims relating to atmospheric testing.
Sec. 100203. Claims relating to uranium mining.
Sec. 100204. Claims relating to Manhattan Project waste.
Sec. 100205. Limitations on claims.
TITLE I—COMMITTEE ON AGRI-
CULTURE, NUTRITION, AND FOR-
ESTRY
Subtitle A—Nutrition
SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN.
(a) IN GENERAL.—Section 3 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2012) is amended by striking subsection (u)
and inserting the following:
‘‘(u) THRIFTY FOOD PLAN.—
Definition. ‘‘(1) IN GENERAL.—The term ‘thrifty food plan’ means the
diet required to feed a family of 4 persons consisting of a
man and a woman ages 20 through 50, a child ages 6 through
8, and a child ages 9 through 11 using the items and quantities
of food described in the report of the Department of Agriculture
entitled ‘Thrifty Food Plan, 2021’, and each successor report
updated pursuant to this subsection, subject to the conditions
that—
‘‘(A) the relevant market baskets of the thrifty food
plan shall only be changed pursuant to paragraph (4);
‘‘(B) the cost of the thrifty food plan shall be the
basis for uniform allotments for all households, regardless
of the actual composition of the household; and
‘‘(C) the cost of the thrifty food plan may only be
adjusted in accordance with this subsection.
‘‘(2) HOUSEHOLD ADJUSTMENTS.—The Secretary shall make
household adjustments using the following ratios of household
size as a percentage of the maximum 4-person allotment:
‘‘(A) For a 1-person household, 30 percent.
‘‘(B) For a 2-person household, 55 percent.
‘‘(C) For a 3-person household, 79 percent.
‘‘(D) For a 4-person household, 100 percent.
‘‘(E) For a 5-person household, 119 percent.
‘‘(F) For a 6-person household, 143 percent.
‘‘(G) For a 7-person household, 158 percent.
‘‘(H) For an 8-person household, 180 percent.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 81
‘‘(I) For a household of 9 persons or more, an additional
22 percent per person, which additional percentage shall
not total more than 200 percent.
‘‘(3) ALLOWABLE COST ADJUSTMENTS.—The Secretary
shall—
‘‘(A) make cost adjustments in the thrifty food plan Hawaii.
for Hawaii and the urban and rural parts of Alaska to Alaska.
reflect the cost of food in Hawaii and urban and rural
Alaska;
‘‘(B) make cost adjustments in the separate thrifty Guam.
food plans for Guam and the Virgin Islands of the United Virgin Islands.
States to reflect the cost of food in those States, but not
to exceed the cost of food in the 50 States and the District
of Columbia; and
‘‘(C) on October 1, 2025, and on each October 1 there- Effective dates.
after, adjust the cost of the thrifty food plan to reflect Time period.
changes in the Consumer Price Index for All Urban Con- Expiration date.
sumers, published by the Bureau of Labor Statistics of
the Department of Labor, for the most recent 12-month
period ending in June.
‘‘(4) RE-EVALUATION OF MARKET BASKETS.—
‘‘(A) RE-EVALUATION.—Not earlier than October 1, Deadline.
2027, the Secretary may re-evaluate the market baskets
of the thrifty food plan based on current food prices, food
composition data, consumption patterns, and dietary guid-
ance.
‘‘(B) COST NEUTRALITY.—The Secretary shall not
increase the cost of the thrifty food plan based on a re-
evaluation under this paragraph.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by striking
‘‘section 3(u)(4)’’ and inserting ‘‘section 3(u)(3)’’.
(2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ‘‘sec-
tion 3(u)(4)’’ and inserting ‘‘section 3(u)(3)’’.
(3) Section 27(a)(2) of the Food and Nutrition Act of 2008
(7 U.S.C. 2036(a)(2))) is amended by striking ‘‘section 3(u)(4)’’
each place it appears and inserting ‘‘section 3(u)(3)’’.
SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR
ABLE-BODIED ADULTS.
(a) EXCEPTIONS.—Section 6(o) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2015(o)) is amended by striking paragraph (3)
and inserting the following:
‘‘(3) EXCEPTIONS.—Paragraph (2) shall not apply to an indi-
vidual if the individual is—
‘‘(A) under 18, or over 65, years of age;
‘‘(B) medically certified as physically or mentally unfit
for employment;
‘‘(C) a parent or other member of a household with
responsibility for a dependent child under 14 years of age;
‘‘(D) otherwise exempt under subsection (d)(2);
‘‘(E) a pregnant woman;
‘‘(F) an Indian or an Urban Indian (as such terms
are defined in paragraphs (13) and (28) of section 4 of
the Indian Health Care Improvement Act); or
139 STAT. 82 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(G) a California Indian described in section 809(a)
of the Indian Health Care Improvement Act.’’.
(b) STANDARDIZING ENFORCEMENT.—Section 6(o)(4) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended—
(1) in subparagraph (A), by striking clause (ii) and inserting
the following:
‘‘(ii) is in a noncontiguous State and has an
unemployment rate that is at or above 1.5 times the
national unemployment rate.’’; and
(2) by adding at the end the following:
‘‘(C) DEFINITION OF NONCONTIGUOUS STATE.—
‘‘(i) IN GENERAL.—In this paragraph, the term ‘non-
contiguous State’ means a State that is not 1 of the
contiguous 48 States or the District of Columbia.
‘‘(ii) EXCLUSIONS.—The term ‘noncontiguous State’
does not include Guam or the Virgin Islands of the
United States.’’.
(c) WAIVER FOR NONCONTIGUOUS STATES.—Section 6(o) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended—
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following:
‘‘(7) EXEMPTION FOR NONCONTIGUOUS STATES.—
‘‘(A) DEFINITION OF NONCONTIGUOUS STATE.—
‘‘(i) IN GENERAL.—In this paragraph, the term ‘non-
contiguous State’ means a State that is not 1 of the
contiguous 48 States or the District of Columbia.
‘‘(ii) EXCLUSIONS.—In this paragraph, the term
‘noncontiguous State’ does not include Guam or the
Virgin Islands of the United States.
‘‘(B) EXEMPTION.—Subject to subparagraph (D), the
Secretary may exempt individuals in a noncontiguous State
from compliance with the requirements of paragraph (2)
if—
‘‘(i) the State agency submits to the Secretary a
request for that exemption, made in such form and
at such time as the Secretary may require, and
including the information described in subparagraph
(C); and
Determination. ‘‘(ii) the Secretary determines that based on that
Compliance. request, the State agency is demonstrating a good faith
effort to comply with the requirements of paragraph
(2).
‘‘(C) GOOD FAITH EFFORT DETERMINATION.—In deter-
mining whether a State agency is demonstrating a good
faith effort for purposes of subparagraph (B)(ii), the Sec-
retary shall consider—
‘‘(i) any actions taken by the State agency toward
compliance with the requirements of paragraph (2);
‘‘(ii) any significant barriers to or challenges in
meeting those requirements, including barriers or chal-
lenges relating to funding, design, development,
procurement, or installation of necessary systems or
resources;
‘‘(iii) the detailed plan and timeline of the State
agency for achieving full compliance with those require-
ments, including any milestones (as defined by the
Secretary); and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 83
‘‘(iv) any other criteria determined appropriate by
the Secretary.
‘‘(D) DURATION OF EXEMPTION.—
‘‘(i) IN GENERAL.—An exemption granted under Deadline.
subparagraph (B) shall expire not later than December
31, 2028, and may not be renewed beyond that date.
‘‘(ii) EARLY TERMINATION.—The Secretary may Determination.
terminate an exemption granted under subparagraph
(B) prior to the expiration date of that exemption if
the Secretary determines that the State agency—
‘‘(I) has failed to comply with the reporting Compliance.
requirements described in subparagraph (E); or
‘‘(II) based on the information provided pursu-
ant to subparagraph (E), failed to make continued
good faith efforts toward compliance with the
requirements of this subsection.
‘‘(E) REPORTING REQUIREMENTS.—A State agency
granted an exemption under subparagraph (B) shall submit
to the Secretary—
‘‘(i) quarterly progress reports on the status of
the State agency in achieving the milestones toward
full compliance described in subparagraph (C)(iii); and
‘‘(ii) information on specific risks or newly identi- Plan.
fied barriers or challenges to full compliance, including
the plan of the State agency to mitigate those risks,
barriers, or challenges.’’.
SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED
ON RECEIPT OF ENERGY ASSISTANCE.
(a) STANDARD UTILITY ALLOWANCE.—Section 5(e)(6)(C)(iv)(I) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I))
is amended by inserting ‘‘with an elderly or disabled member’’
after ‘‘households’’.
(b) THIRD-PARTY ENERGY ASSISTANCE PAYMENTS.—Section
5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4))
is amended—
(1) in subparagraph (A), by inserting ‘‘without an elderly
or disabled member’’ before ‘‘shall be’’; and
(2) in subparagraph (B), by inserting ‘‘with an elderly or
disabled member’’ before ‘‘under a State law’’.
SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES.
Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e)(6)) is amended by adding at the end the following:
‘‘(E) RESTRICTIONS ON INTERNET EXPENSES.—Any
service fee associated with internet connection shall not
be used in computing the excess shelter expense deduction
under this paragraph.’’.
SEC. 10105. MATCHING FUNDS REQUIREMENTS.
(a) IN GENERAL.—Section 4(a) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013(a)) is amended—
(1) by striking ‘‘(a) Subject to’’ and inserting the following:
‘‘(a) PROGRAM.—
‘‘(1) ESTABLISHMENT.—Subject to’’; and
(2) by adding at the end the following:
‘‘(2) STATE QUALITY CONTROL INCENTIVE.—
139 STAT. 84 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(A) DEFINITION OF PAYMENT ERROR RATE.—In this
paragraph, the term ‘payment error rate’ has the meaning
given the term in section 16(c)(2).
Time periods. ‘‘(B) STATE COST SHARE.—
Effective date. ‘‘(i) IN GENERAL.—Subject to clause (iii), beginning
in fiscal year 2028, if the payment error rate of a
State as determined under clause (ii) is—
‘‘(I) less than 6 percent, the Federal share
of the cost of the allotment described in paragraph
(1) for that State in a fiscal year shall be 100
percent, and the State share shall be 0 percent;
‘‘(II) equal to or greater than 6 percent but
less than 8 percent, the Federal share of the cost
of the allotment described in paragraph (1) for
that State in a fiscal year shall be 95 percent,
and the State share shall be 5 percent;
‘‘(III) equal to or greater than 8 percent but
less than 10 percent, the Federal share of the
cost of the allotment described in paragraph (1)
for that State in a fiscal year shall be 90 percent,
and the State share shall be 10 percent; and
‘‘(IV) equal to or greater than 10 percent, the
Federal share of the cost of the allotment described
in paragraph (1) for that State in a fiscal year
shall be 85 percent, and the State share shall
be 15 percent.
‘‘(ii) ELECTIONS.—
‘‘(I) FISCAL YEAR 2028.—For fiscal year 2028,
to calculate the applicable State share under
clause (i), a State may elect to use the payment
error rate of the State from fiscal year 2025 or
2026.
‘‘(II) FISCAL YEAR 2029 AND THEREAFTER.—For
fiscal year 2029 and each fiscal year thereafter,
to calculate the applicable State share under
clause (i), the Secretary shall use the payment
error rate of the State for the third fiscal year
preceding the fiscal year for which the State share
is being calculated.
‘‘(iii) DELAYED IMPLEMENTATION.—
‘‘(I) FISCAL YEAR 2025.—If, for fiscal year 2025,
the payment error rate of a State multiplied by
1.5 is equal to or above 20 percent, the
implementation date under clause (i) for that State
shall be fiscal year 2029.
‘‘(II) FISCAL YEAR 2026.—If, for fiscal year 2026,
the payment error rate of a State multiplied by
1.5 is equal to or above 20 percent, the
implementation date under clause (i) for that State
shall be fiscal year 2030.
‘‘(3) MAXIMUM FEDERAL PAYMENT.—The Secretary may not
pay towards the cost of an allotment described in paragraph
(1) an amount that is greater than the applicable Federal
share under paragraph (2).’’.
(b) LIMITATION ON AUTHORITY.—Section 13(a)(1) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 85
the first sentence by inserting ‘‘or the payment or disposition of
a State share under section 4(a)(2)’’ after ‘‘16(c)(1)(D)(i)(II)’’.
SEC. 10106. ADMINISTRATIVE COST SHARING.
Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(a)) is amended in the matter preceding paragraph (1) by
striking ‘‘agency an amount equal to 50 per centum’’ and inserting
‘‘agency, through fiscal year 2026, 50 percent, and for fiscal year
2027 and each fiscal year thereafter, 25 percent,’’.
SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT
PROGRAM.
Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036a(d)(1)(F)) is amended by striking ‘‘for fiscal year 2016
and each subsequent fiscal year’’ and inserting ‘‘for each of fiscal
years 2016 through 2025’’.
SEC. 10108. ALIEN SNAP ELIGIBILITY.
Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(f)) is amended to read as follows:
‘‘(f) No individual who is a member of a household otherwise
eligible to participate in the supplemental nutrition assistance pro-
gram under this section shall be eligible to participate in the
supplemental nutrition assistance program as a member of that
or any other household unless he or she is—
‘‘(1) a resident of the United States; and
‘‘(2) either—
‘‘(A) a citizen or national of the United States;
‘‘(B) an alien lawfully admitted for permanent resi-
dence as an immigrant as defined by sections 101(a)(15)
and 101(a)(20) of the Immigration and Nationality Act,
excluding, among others, alien visitors, tourists, diplomats,
and students who enter the United States temporarily with
no intention of abandoning their residence in a foreign
country;
‘‘(C) an alien who has been granted the status of Cuban
and Haitian entrant, as defined in section 501(e) of the
Refugee Education Assistance Act of 1980 (Public Law
96–422); or
‘‘(D) an individual who lawfully resides in the United
States in accordance with a Compact of Free Association
referred to in section 402(b)(2)(G) of the Personal Responsi-
bility and Work Opportunity Reconciliation Act of 1996.
The income (less, at State option, a pro rata share) and financial
resources of the individual rendered ineligible to participate
in the supplemental nutrition assistance program under this
subsection shall be considered in determining the eligibility
and the value of the allotment of the household of which such
individual is a member.’’.
Subtitle B—Forestry
SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY.
The unobligated balances of amounts appropriated by the fol-
lowing provisions of Public Law 117–169 are rescinded:
(1) Paragraphs (3) and (4) of section 23001(a) (136 Stat.
2023).
139 STAT. 86 PUBLIC LAW 119–21—JULY 4, 2025
(2) Paragraphs (1) through (4) of section 23002(a) (136
Stat. 2025).
(3) Section 23003(a)(2) (136 Stat. 2026).
(4) Section 23005 (136 Stat. 2027).
Subtitle C—Commodities
SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE.
(a) EFFECTIVE REFERENCE PRICE.—Section 1111(8)(B)(ii) of the
Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by
striking ‘‘85’’ and inserting ‘‘beginning with the crop year 2025,
88’’.
(b) REFERENCE PRICE.—Section 1111 of the Agricultural Act
of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19)
and inserting the following:
Effective dates. ‘‘(19) REFERENCE PRICE.—
‘‘(A) IN GENERAL.—Effective beginning with the 2025
crop year, subject to subparagraphs (B) and (C), the term
‘reference price’, with respect to a covered commodity for
a crop year, means the following:
‘‘(i) For wheat, $6.35 per bushel.
‘‘(ii) For corn, $4.10 per bushel.
‘‘(iii) For grain sorghum, $4.40 per bushel.
‘‘(iv) For barley, $5.45 per bushel.
‘‘(v) For oats, $2.65 per bushel.
‘‘(vi) For long grain rice, $16.90 per hundredweight.
‘‘(vii) For medium grain rice, $16.90 per hundred-
weight.
‘‘(viii) For soybeans, $10.00 per bushel.
‘‘(ix) For other oilseeds, $23.75 per hundredweight.
‘‘(x) For peanuts, $630.00 per ton.
‘‘(xi) For dry peas, $13.10 per hundredweight.
‘‘(xii) For lentils, $23.75 per hundredweight.
‘‘(xiii) For small chickpeas, $22.65 per hundred-
weight.
‘‘(xiv) For large chickpeas, $25.65 per hundred-
weight.
‘‘(xv) For seed cotton, $0.42 per pound.
‘‘(B) EFFECTIVENESS.—Effective beginning with the
2031 crop year, the reference prices defined in subpara-
graph (A) with respect to a covered commodity shall equal
the reference price in the previous crop year multiplied
by 1.005.
‘‘(C) LIMITATION.—In no case shall a reference price
for a covered commodity exceed 113 percent of the reference
price for such covered commodity listed in subparagraph
(A).’’.
SEC. 10302. BASE ACRES.
Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012)
is amended—
(1) in subsection (d)(3)(A), by striking ‘‘2023’’ and inserting
‘‘2031’’; and
(2) by adding at the end the following:
‘‘(e) ADDITIONAL BASE ACRES.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 87
‘‘(1) IN GENERAL.—As soon as practicable after the date Notice.
of enactment of this subsection, and notwithstanding subsection
(a), the Secretary shall provide notice to owners of eligible
farms pursuant to paragraph (3) and allocate to those eligible
farms a total of not more than an additional 30,000,000 base
acres in the manner provided in this subsection. An owner Notification.
of a farm that is eligible to receive an allocation of base acres Deadline.
may elect to not receive that allocation by notifying the Sec-
retary not later than 90 days after receipt of the notice provided
by the Secretary under this paragraph.
‘‘(2) CONTENT OF NOTICE.—The notice under paragraph (1)
shall include the following:
‘‘(A) Information that the allocation is occurring.
‘‘(B) Information regarding the eligibility of the farm
for an allocation of base acres under paragraph (3).
‘‘(C) Information regarding how an owner may appeal Process.
a determination of ineligibility for an allocation of base
acres under paragraph (3) through an appeals process
established by the Secretary.
‘‘(3) ELIGIBILITY.—
‘‘(A) IN GENERAL.—Subject to subparagraph (D), effec- Effective date.
tive beginning with the 2026 crop year, a farm is eligible
to receive an allocation of base acres if, with respect to
the farm, the amount described in subparagraph (B)
exceeds the amount described in subparagraph (C).
‘‘(B) 5-YEAR AVERAGE SUM.—The amount described in
this subparagraph, with respect to a farm, is the sum
of—
‘‘(i) the 5-year average of—
‘‘(I) the acreage planted on the farm to all
covered commodities for harvest, grazing, haying,
silage or other similar purposes for the 2019
through 2023 crop years; and
‘‘(II) any acreage on the farm that the pro- Determination.
ducers were prevented from planting during the
2019 through 2023 crop years to covered commod-
ities because of drought, flood, or other natural
disaster, or other condition beyond the control of
the producers, as determined by the Secretary;
plus
‘‘(ii) the lesser of—
‘‘(I) 15 percent of the total acres on the farm;
and
‘‘(II) the 5-year average of—
‘‘(aa) the acreage planted on the farm to
eligible noncovered commodities for harvest,
grazing, haying, silage, or other similar pur-
poses for the 2019 through 2023 crop years;
and
‘‘(bb) any acreage on the farm that the Determination.
producers were prevented from planting
during the 2019 through 2023 crop years to
eligible noncovered commodities because of
drought, flood, or other natural disaster, or
other condition beyond the control of the pro-
ducers, as determined by the Secretary.
139 STAT. 88 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(C) TOTAL NUMBER OF BASE ACRES FOR COVERED
Effective date. COMMODITIES.—The amount described in this subpara-
graph, with respect to a farm, is the total number of
base acres for covered commodities on the farm (excluding
unassigned crop base), as in effect on September 30, 2024.
‘‘(D) EFFECT OF NO RECENT PLANTINGS OF COVERED
COMMODITIES.—In the case of a farm for which the amount
determined under clause (i) of subparagraph (B) is equal
to zero, that farm shall be ineligible to receive an allocation
of base acres under this subsection.
‘‘(E) ACREAGE PLANTED ON THE FARM TO ELIGIBLE NON-
COVERED COMMODITIES DEFINED.—In this paragraph, the
term ‘acreage planted on the farm to eligible noncovered
commodities’ means acreage planted on a farm to commod-
ities other than covered commodities, trees, bushes, vines,
grass, or pasture (including cropland that was idle or fal-
low), as determined by the Secretary.
‘‘(4) NUMBER OF BASE ACRES.—Subject to paragraphs (3)
and (8), the number of base acres allocated to an eligible
farm shall—
‘‘(A) be equal to the difference obtained by subtracting
the amount determined under subparagraph (C) of para-
graph (3) from the amount determined under subparagraph
(B) of that paragraph; and
‘‘(B) include unassigned crop base.
Time periods. ‘‘(5) ALLOCATION OF ACRES.—
Determinations. ‘‘(A) ALLOCATION.—The Secretary shall allocate the
number of base acres under paragraph (4) among those
covered commodities planted on the farm at any time
during the 2019 through 2023 crop years.
‘‘(B) ALLOCATION FORMULA.—The allocation of addi-
tional base acres for covered commodities shall be in propor-
tion to the ratio of—
‘‘(i) the 5-year average of—
‘‘(I) the acreage planted on the farm to each
covered commodity for harvest, grazing, haying,
silage, or other similar purposes for the 2019
through 2023 crop years; and
‘‘(II) any acreage on the farm that the pro-
ducers were prevented from planting during the
2019 through 2023 crop years to that covered com-
modity because of drought, flood, or other natural
disaster, or other condition beyond the control of
the producers, as determined by the Secretary;
to
‘‘(ii) the 5-year average determined under para-
graph (3)(B)(i).
‘‘(C) INCLUSION OF ALL 5 YEARS IN AVERAGE.—For the
purpose of determining a 5-year acreage average under
subparagraph (B) for a farm, the Secretary shall not
exclude any crop year in which a covered commodity was
not planted.
‘‘(D) TREATMENT OF MULTIPLE PLANTING OR PREVENTED
PLANTING.—For the purpose of determining under subpara-
graph (B) the acreage on a farm that producers planted
or were prevented from planting during the 2019 through
2023 crop years to covered commodities, if the acreage
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 89
that was planted or prevented from being planted was
devoted to another covered commodity in the same crop
year (other than a covered commodity produced under an
established practice of double cropping), the owner may
elect the covered commodity to be used for that crop year
in determining the 5-year average, but may not include
both the initial covered commodity and the subsequent
covered commodity.
‘‘(E) LIMITATION.—The allocation of additional base
acres among covered commodities on a farm under this
paragraph may not result in a total number of base acres
for the farm in excess of the total number of acres on
the farm.
‘‘(6) REDUCTION BY THE SECRETARY.—In carrying out this Applicability.
subsection, if the total number of eligible acres allocated to
base acres across all farms in the United States under this
subsection would exceed 30,000,000 acres, the Secretary shall
apply an across-the-board, pro-rata reduction to the number
of eligible acres to ensure the number of allocated base acres
under this subsection is equal to 30,000,000 acres.
‘‘(7) PAYMENT YIELD.—Beginning with crop year 2026, for Effective date.
the purpose of making price loss coverage payments under
section 1116, the Secretary shall establish payment yields to
base acres allocated under this subsection equal to—
‘‘(A) the payment yield established on the farm for
the applicable covered commodity; and
‘‘(B) if no such payment yield for the applicable covered
commodity exists, a payment yield—
‘‘(i) equal to the average payment yield for the
covered commodity for the county in which the farm
is situated; or
‘‘(ii) determined pursuant to section 1113(c).
‘‘(8) TREATMENT OF NEW OWNERS.—In the case of a farm Time period.
for which the owner on the date of enactment of this subsection
was not the owner for the 2019 through 2023 crop years,
the Secretary shall use the planting history of the prior owner
or owners of that farm for purposes of determining—
‘‘(A) eligibility under paragraph (3);
‘‘(B) eligible acres under paragraph (4); and
‘‘(C) the allocation of acres under paragraph (5).’’.
SEC. 10303. PRODUCER ELECTION.
(a) IN GENERAL.—Section 1115 of the Agricultural Act of 2014
(7 U.S.C. 9015) is amended—
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ‘‘2023’’ and inserting ‘‘2031’’;
(2) in subsection (c)—
(A) in the matter preceding paragraph (1)—
(i) by striking ‘‘crop year or’’ and inserting ‘‘crop
year,’’; and
(ii) by inserting ‘‘or the 2026 crop year,’’ after
‘‘2019 crop year,’’;
(B) in paragraph (1)—
(i) by striking ‘‘crop year or’’ and inserting ‘‘crop
year,’’; and
(ii) by inserting ‘‘or the 2026 crop year,’’ after
‘‘2019 crop year,’’; and
139 STAT. 90 PUBLIC LAW 119–21—JULY 4, 2025
(C) in paragraph (2)—
(i) in subparagraph (A), by striking ‘‘and’’ at the
end;
(ii) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(iii) by adding at the end the following:
‘‘(C) the same coverage for each covered commodity
on the farm for the 2027 through 2031 crop years as
was applicable for the 2025 crop year.’’; and
(3) by adding at the end the following:
‘‘(i) HIGHER OF PRICE LOSS COVERAGE PAYMENTS AND AGRI-
Time period. CULTURE RISK COVERAGE PAYMENTS.—For the 2025 crop year, the
Secretary shall, on a covered commodity-by-covered commodity
basis, make the higher of price loss coverage payments under section
1116 and agriculture risk coverage county coverage payments under
section 1117 to the producers on a farm for the payment acres
for each covered commodity on the farm.’’.
(b) FEDERAL CROP INSURANCE SUPPLEMENTAL COVERAGE
OPTION.—Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act
(7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking ‘‘Crops for which
the producer has elected under section 1116 of the Agricultural
Act of 2014 to receive agriculture risk coverage and acres’’ and
inserting ‘‘Acres’’.
SEC. 10304. PRICE LOSS COVERAGE.
Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016)
is amended—
(1) in subsection (a)(2), in the matter preceding subpara-
graph (A), by striking ‘‘2023’’ and inserting ‘‘2031’’;
(2) in subsection (c)(1)(B)—
(A) in the subparagraph heading, by striking ‘‘2023’’
and inserting ‘‘2031’’; and
(B) in the matter preceding clause (i), by striking
‘‘2023’’ and inserting ‘‘2031’’;
(3) in subsection (d), in the matter preceding paragraph
(1), by striking ‘‘2025’’ and inserting ‘‘2031’’; and
(4) in subsection (g)—
(A) by striking ‘‘subparagraph (F) of section 1111(19)’’
and inserting ‘‘paragraph (19)(A)(vi) of section 1111’’; and
(B) by striking ‘‘2012 through 2016’’ each place it
appears and inserting ‘‘2017 through 2021’’.
SEC. 10305. AGRICULTURE RISK COVERAGE.
Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017)
is amended—
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ‘‘2023’’ and inserting ‘‘2031’’;
(2) in subsection (c)—
(A) in paragraph (1), by inserting ‘‘for each of the
2014 through 2024 crop years and 90 percent of the bench-
mark revenue for each of the 2025 through 2031 crop
years’’ before the period at the end;
(B) by striking ‘‘2023’’ each place it appears and
inserting ‘‘2031’’; and
(C) in paragraph (4)(B), in the subparagraph heading,
by striking ‘‘2023’’ and inserting ‘‘2031’’;
(3) in subsection (d)(1), by striking subparagraph (B) and
inserting the following:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 91
‘‘(B)(i) for each of the 2014 through 2024 crop years,
10 percent of the benchmark revenue for the crop year
applicable under subsection (c); and
‘‘(ii) for each of the 2025 through 2031 crop years,
12 percent of the benchmark revenue for the crop year
applicable under subsection (c).’’; and
(4) in subsections (e), (g)(5), and (i)(5), by striking ‘‘2023’’
each place it appears and inserting ‘‘2031’’.
SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES.
(a) IN GENERAL.—Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended—
(1) in subsection (a)—
(A) by redesignating paragraph (5) as paragraph (6);
and
(B) by inserting after paragraph (4) the following:
‘‘(5) QUALIFIED PASS-THROUGH ENTITY.—The term ‘qualified Definition.
pass-through entity’ means—
‘‘(A) a partnership (within the meaning of subchapter
K of chapter 1 of the Internal Revenue Code of 1986);
‘‘(B) an S corporation (as defined in section 1361 of
that Code);
‘‘(C) a limited liability company that does not affirma-
tively elect to be treated as a corporation; and
‘‘(D) a joint venture or general partnership.’’;
(2) in subsections (b) and (c), by striking ‘‘except a joint
venture or general partnership’’ each place it appears and
inserting ‘‘except a qualified pass-through entity’’; and
(3) in subsection (d), by striking ‘‘subtitle B of title I of
the Agricultural Act of 2014 or’’.
(b) ATTRIBUTION OF PAYMENTS.—Section 1001(e)(3)(B)(ii) of the
Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended—
(1) in the clause heading, by striking ‘‘JOINT VENTURES
AND GENERAL PARTNERSHIPS’’ and inserting ‘‘QUALIFIED PASS-
THROUGH ENTITIES’’;
(2) by striking ‘‘a joint venture or a general partnership’’
and inserting ‘‘a qualified pass-through entity’’;
(3) by striking ‘‘joint ventures and general partnerships’’
and inserting ‘‘qualified pass-through entities’’; and
(4) by striking ‘‘the joint venture or general partnership’’
and inserting ‘‘the qualified pass-through entity’’.
(c) PERSONS ACTIVELY ENGAGED IN FARMING.—Section
1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2))
is amended—
(1) subparagraphs (A) and (B), by striking ‘‘a general part-
nership, a participant in a joint venture’’ each place it appears
and inserting ‘‘a qualified pass-through entity’’; and
(2) in subparagraph (C), by striking ‘‘a general partnership,
joint venture, or similar entity’’ and inserting ‘‘a qualified pass-
through entity or a similar entity’’.
(d) JOINT AND SEVERAL LIABILITY.—Section 1001B(d) of the
Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by
striking ‘‘partnerships and joint ventures’’ and inserting ‘‘qualified
pass-through entities’’.
(e) EXCLUSION FROM AGI CALCULATION.—Section 1001D(d) of
the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended
139 STAT. 92 PUBLIC LAW 119–21—JULY 4, 2025
by striking ‘‘, general partnership, or joint venture’’ each place
it appears.
SEC. 10307. PAYMENT LIMITATIONS.
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
is amended—
(1) in subsection (b)—
(A) by striking ‘‘The’’ and inserting ‘‘Subject to sub-
section (i), the’’; and
(B) by striking ‘‘$125,000’’ and inserting ‘‘$155,000’’;
(2) in subsection (c)—
(A) by striking ‘‘The’’ and inserting ‘‘Subject to sub-
section (i), the’’; and
(B) by striking ‘‘$125,000’’ and inserting ‘‘$155,000’’;
and
(3) by adding at the end the following:
Time periods. ‘‘(i) ADJUSTMENT.—For the 2025 crop year and each crop year
thereafter, the Secretary shall annually adjust the amounts
described in subsections (b) and (c) for inflation based on the Con-
sumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor.’’.
SEC. 10308. ADJUSTED GROSS INCOME LIMITATION.
Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C.
1308–3a(b)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph (3)’’ and
inserting ‘‘paragraphs (3) and (4)’’; and
(2) by adding at the end the following:
‘‘(4) EXCEPTION FOR CERTAIN OPERATIONS.—
‘‘(A) DEFINITIONS.—In this paragraph:
‘‘(i) EXCEPTED PAYMENT OR BENEFIT.—The term
‘excepted payment or benefit’ means—
‘‘(I) a payment or benefit under subtitle E
of title I of the Agricultural Act of 2014 (7 U.S.C.
9081 et seq.);
‘‘(II) a payment or benefit under section 196
of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333); and
‘‘(III) a payment or benefit described in para-
graph (2)(C) received on or after October 1, 2024.
‘‘(ii) FARMING, RANCHING, OR SILVICULTURE ACTIVI-
Determination. TIES.—The term ‘farming, ranching, or silviculture
activities’ includes agri-tourism, direct-to-consumer
marketing of agricultural products, the sale of agricul-
tural equipment owned by the person or legal entity,
and other agriculture-related activities, as determined
by the Secretary.
‘‘(B) EXCEPTION.—In the case of an excepted payment
or benefit, the limitation established by paragraph (1) shall
not apply to a person or legal entity during a crop, fiscal,
or program year, as appropriate, if greater than or equal
to 75 percent of the average gross income of the person
or legal entity derives from farming, ranching, or
silviculture activities.’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 93
SEC. 10309. MARKETING LOANS.
(a) AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE
LOANS FOR LOAN COMMODITIES.—Section 1201(b)(1) of the Agricul-
tural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking
‘‘2023’’ and inserting ‘‘2031’’.
(b) LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE
LOANS.—Section 1202 of the Agricultural Act of 2014 (7 U.S.C.
9032) is amended—
(1) in subsection (b)—
(A) in the subsection heading, by striking ‘‘2023’’ and
inserting ‘‘2025’’; and
(B) in the matter preceding paragraph (1), by striking
‘‘2023’’ and inserting ‘‘2025’’;
(2) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively;
(3) by inserting after subsection (b) the following:
‘‘(c) 2026 THROUGH 2031 CROP YEARS.—For purposes of each
of the 2026 through 2031 crop years, the loan rate for a marketing
assistance loan under section 1201 for a loan commodity shall
be equal to the following:
‘‘(1) In the case of wheat, $3.72 per bushel.
‘‘(2) In the case of corn, $2.42 per bushel.
‘‘(3) In the case of grain sorghum, $2.42 per bushel.
‘‘(4) In the case of barley, $2.75 per bushel.
‘‘(5) In the case of oats, $2.20 per bushel.
‘‘(6) In the case of upland cotton, $0.55 per pound.
‘‘(7) In the case of extra long staple cotton, $1.00 per
pound.
‘‘(8) In the case of long grain rice, $7.70 per hundredweight.
‘‘(9) In the case of medium grain rice, $7.70 per hundred-
weight.
‘‘(10) In the case of soybeans, $6.82 per bushel.
‘‘(11) In the case of other oilseeds, $11.10 per hundred-
weight for each of the following kinds of oilseeds:
‘‘(A) Sunflower seed.
‘‘(B) Rapeseed.
‘‘(C) Canola.
‘‘(D) Safflower.
‘‘(E) Flaxseed.
‘‘(F) Mustard seed.
‘‘(G) Crambe.
‘‘(H) Sesame seed.
‘‘(I) Other oilseeds designated by the Secretary.
‘‘(12) In the case of dry peas, $6.87 per hundredweight.
‘‘(13) In the case of lentils, $14.30 per hundredweight.
‘‘(14) In the case of small chickpeas, $11.00 per hundred-
weight.
‘‘(15) In the case of large chickpeas, $15.40 per hundred-
weight.
‘‘(16) In the case of graded wool, $1.60 per pound.
‘‘(17) In the case of nongraded wool, $0.55 per pound.
‘‘(18) In the case of mohair, $5.00 per pound.
‘‘(19) In the case of honey, $1.50 per pound.
‘‘(20) In the case of peanuts, $390 per ton.’’;
(4) in subsection (d) (as so redesignated), by striking ‘‘(a)(11)
and (b)(11)’’ and inserting ‘‘(a)(11), (b)(11), and (c)(11)’’; and
139 STAT. 94 PUBLIC LAW 119–21—JULY 4, 2025
(5) in subsection (e) (as so redesignated), in paragraph
(1), by striking ‘‘$0.25’’ and inserting ‘‘$0.30’’.
(c) PAYMENT OF COTTON STORAGE COSTS.—Section 1204(g) of
the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended—
(1) by striking ‘‘Effective’’ and inserting the following:
‘‘(1) CROP YEARS 2014 THROUGH 2025.—Effective’’;
(2) in paragraph (1) (as so designated), by striking ‘‘2023’’
and inserting ‘‘2025’’; and
(3) by adding at the end the following:
Time periods. ‘‘(2) PAYMENT OF COTTON STORAGE COSTS.—Effective for
each of the 2026 through 2031 crop years, the Secretary shall
make cotton storage payments for upland cotton and extra
long staple cotton available in the same manner as the Sec-
retary provided storage payments for the 2006 crop of upland
cotton, except that the payment rate shall be equal to the
lesser of—
‘‘(A) the submitted storage charge for the current mar-
keting year; and
‘‘(B) in the case of storage in—
California. ‘‘(i) California or Arizona, a payment rate of $4.90;
Arizona. and
‘‘(ii) any other State, a payment rate of $3.00.’’.
(d) LOAN DEFICIENCY PAYMENTS.—
(1) CONTINUATION.—Section 1205(a)(2)(B) of the Agricul-
tural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking
‘‘2023’’ and inserting ‘‘2031’’.
(2) PAYMENTS IN LIEU OF LDPS.—Section 1206 of the Agri-
cultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections
(a) and (d), by striking ‘‘2023’’ each place it appears and
inserting ‘‘2031’’.
(e) SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE
COTTON.—Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C.
9038(a)) is amended, in the matter preceding paragraph (1), by
striking ‘‘2026’’ and inserting ‘‘2032’’.
(f) AVAILABILITY OF RECOURSE LOANS.—Section 1209 of the
Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections
(a)(2), (b), and (c), by striking ‘‘2023’’ each place it appears and
inserting ‘‘2031’’.
SEC. 10310. REPAYMENT OF MARKETING LOANS.
Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034)
is amended—
(1) in subsection (b)—
(A) by redesignating paragraph (1) as subparagraph
(A) and indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so
redesignated), by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—The Secretary’’; and
Determinations. (C) by striking paragraph (2) and inserting the fol-
lowing:
‘‘(B)(i) in the case of long grain rice and medium grain
rice, the prevailing world market price for the commodity,
as determined and adjusted by the Secretary in accordance
with this section; or
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 95
‘‘(ii) in the case of upland cotton, the prevailing world
market price for the commodity, as determined and
adjusted by the Secretary in accordance with this section.
‘‘(2) REFUND FOR UPLAND COTTON.—In the case of a repay- Time period.
ment for a marketing assistance loan for upland cotton at
a rate described in paragraph (1)(B)(ii), the Secretary shall
provide to the producer a refund (if any) in an amount equal
to the difference between the lowest prevailing world market
price, as determined and adjusted by the Secretary in accord-
ance with this section, during the 30-day period following the
date on which the producer repays the marketing assistance
loan and the repayment rate.’’;
(2) in subsection (c)—
(A) by striking the period at the end and inserting
‘‘; and’’;
(B) by striking ‘‘at the loan rate’’ and inserting the
following: ″at a rate that is the lesser of— ‘‘
‘‘(1) the loan rate’’; and
(C) by adding at the end the following:
‘‘(2) the prevailing world market price for the commodity,
as determined and adjusted by the Secretary in accordance
with this section.’’;
(3) in subsection (d)—
(A) in paragraph (1), by striking ‘‘and medium grain
rice’’ and inserting ‘‘medium grain rice, and extra long
staple cotton’’;
(B) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively, and indenting appro-
priately;
(C) in the matter preceding subparagraph (A) (as so
redesignated), by striking ‘‘For purposes’’ and inserting the
following:
‘‘(1) IN GENERAL.—For purposes’’; and
(D) by adding at the end the following:
‘‘(2) UPLAND COTTON.—In the case of upland cotton, for
any period when price quotations for Middling (M) 13⁄32-inch
cotton are available, the formula under paragraph (1)(A) shall
be based on the average of the 3 lowest-priced growths that
are quoted.’’; and
(4) in subsection (e)—
(A) in the subsection heading, by inserting ‘‘EXTRA
LONG STAPLE COTTON,’’ after ‘‘UPLAND COTTON,’’;
(B) in paragraph (2)—
(i) in the paragraph heading, by inserting
‘‘UPLAND’’ before ‘‘COTTON’’; and
(ii) in subparagraph (B), in the matter preceding
clause (i), by striking ‘‘2024’’ and inserting ‘‘2032’’;
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following:
‘‘(3) EXTRA LONG STAPLE COTTON.—The prevailing world Determinations.
market price for extra long staple cotton determined under
subsection (d)—
‘‘(A) shall be adjusted to United States quality and
location, with the adjustment to include the average costs
to market the commodity, including average transportation
costs, as determined by the Secretary; and
139 STAT. 96 PUBLIC LAW 119–21—JULY 4, 2025
Time period. ‘‘(B) may be further adjusted, during the period begin-
Expiration date. ning on the date of enactment of the Act entitled ‘An
Act to provide for reconciliation pursuant to title II of
H. Con. Res. 14’ (119th Congress) and ending on July
31, 2032, if the Secretary determines the adjustment is
necessary—
‘‘(i) to minimize potential loan forfeitures;
‘‘(ii) to minimize the accumulation of stocks of extra
long staple cotton by the Federal Government;
‘‘(iii) to ensure that extra long staple cotton pro-
duced in the United States can be marketed freely
and competitively; and
‘‘(iv) to ensure an appropriate transition between
current-crop and forward-crop price quotations, except
that the Secretary may use forward-crop price
quotations prior to July 31 of a marketing year only
if—
‘‘(I) there are insufficient current-crop price
quotations; and
‘‘(II) the forward-crop price quotation is the
lowest such quotation available.’’.
SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS.
Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c))
is amended by striking paragraph (2) and inserting the following:
‘‘(2) VALUE OF ASSISTANCE.—The value of the assistance
provided under paragraph (1) shall be—
Time period. ‘‘(A) for the period beginning on August 1, 2013, and
ending on July 31, 2025, 3 cents per pound; and
Effective date. ‘‘(B) beginning on August 1, 2025, 5 cents per pound.’’.
SEC. 10312. SUGAR PROGRAM UPDATES.
(a) LOAN RATE MODIFICATIONS.—Section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272)
is amended—
(1) in subsection (a)—
(A) in paragraph (4), by striking ‘‘and’’ at the end;
(B) in paragraph (5), by striking ‘‘2023 crop years.’’
and inserting ‘‘2024 crop years; and’’; and
(C) by adding at the end the following:
‘‘(6) 24.00 cents per pound for raw cane sugar for each
of the 2025 through 2031 crop years.’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at the end;
(B) in paragraph (2), by striking ‘‘2023 crop years.’’
and inserting ‘‘2024 crop years; and’’; and
(C) by adding at the end the following:
‘‘(3) a rate that is equal to 136.55 percent of the loan
rate per pound of raw cane sugar under subsection (a)(6) for
each of the 2025 through 2031 crop years.’’; and
(3) in subsection (i), by striking ‘‘2023’’ and inserting ‘‘2031’’.
(b) ADJUSTMENTS TO COMMODITY CREDIT CORPORATION STOR-
AGE RATES.—Section 167 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7287) is amended—
(1) by striking subsection (a) and inserting the following:
Time period. ‘‘(a) IN GENERAL.—For the 2025 crop year and each subsequent
crop year, the Commodity Credit Corporation shall establish rates
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 97
for the storage of forfeited sugar in an amount that is not less
than—
‘‘(1) in the case of refined sugar, 34 cents per hundred-
weight per month; and
‘‘(2) in the case of raw cane sugar, 27 cents per hundred-
weight per month.’’; and
(2) in subsection (b)—
(A) in the subsection heading, by striking ‘‘SUBSE-
QUENT’’ and inserting ‘‘PRIOR’’; and
(B) by striking ‘‘and subsequent’’ and inserting
‘‘through 2024’’.
(c) MODERNIZING BEET SUGAR ALLOTMENTS.—
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is
amended by striking ‘‘2023’’ and inserting ‘‘2031’’.
(2) ALLOCATION TO PROCESSORS.—Section 359c(g)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2))
is amended—
(A) by striking ‘‘In the case’’ and inserting the fol-
lowing:
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), in the case’’; and
(B) by adding at the end the following:
‘‘(B) EXCEPTION.—If the Secretary makes an upward
adjustment under paragraph (1)(A), in adjusting allocations
among beet sugar processors, the Secretary shall give pri-
ority to beet sugar processors with available sugar.’’.
(3) TIMING OF REASSIGNMENT.—Section 359e(b)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2))
is amended—
(A) by redesignating subparagraphs (A) through (C)
as clauses (i) through (iii), respectively, and indenting
appropriately;
(B) in the matter preceding clause (i) (as so redesig-
nated), by striking ‘‘If the Secretary’’ and inserting the
following:
‘‘(A) IN GENERAL.—If the Secretary’’; and
(C) by adding at the end the following:
‘‘(B) TIMING.—In carrying out subparagraph (A), the
Secretary shall—
‘‘(i) make an initial determination based on the Determination.
World Agricultural Supply and Demand Estimates
approved by the World Agricultural Outlook Board
for January that shall be applicable to the crop year
for which allotments are required; and
‘‘(ii) provide for an initial reassignment under Deadline.
subparagraph (A)(i) not later than 30 days after the
date on which the World Agricultural Supply and
Demand Estimates described in clause (i) is released.’’.
(d) REALLOCATIONS OF TARIFF-RATE QUOTA SHORTFALL.—Sec-
tion 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk) is amended by adding at the end the following:
‘‘(c) REALLOCATION.—
‘‘(1) INITIAL REALLOCATION.—Subject to paragraph (3), fol-
lowing the establishment of the tariff-rate quotas under sub-
section (a) for a quota year, the Secretary shall—
139 STAT. 98 PUBLIC LAW 119–21—JULY 4, 2025
Determination. ‘‘(A) determine which countries do not intend to fulfill
their allocation for the quota year; and
‘‘(B) reallocate any forecasted shortfall in the fulfill-
ment of the tariff-rate quotas as soon as practicable.
Deadline. ‘‘(2) SUBSEQUENT REALLOCATION.—Subject to paragraph (3),
not later than March 1 of a quota year, the Secretary shall
reallocate any additional forecasted shortfall in the fulfillment
of the tariff-rate quotas for raw cane sugar established under
subsection (a)(1) for that quota year.
‘‘(3) CESSATION OF EFFECTIVENESS.—Paragraphs (1) and
(2) shall cease to be in effect if—
‘‘(A) the Agreement Suspending the Countervailing
Duty Investigation on Sugar from Mexico, signed December
19, 2014, is terminated; and
‘‘(B) no countervailing duty order under subtitle A of
title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et
seq.) is in effect with respect to sugar from Mexico.
‘‘(d) REFINED SUGAR.—
‘‘(1) DEFINITION OF DOMESTIC SUGAR INDUSTRY.—In this
subsection, the term ‘domestic sugar industry’ means
domestic—
‘‘(A) sugar beet producers and processors;
‘‘(B) producers and processors of sugar cane; and
‘‘(C) refiners of raw cane sugar.
‘‘(2) STUDY REQUIRED.—
Deadline. ‘‘(A) IN GENERAL.—Not later than 180 days after the
date of enactment of this subsection, the Secretary shall
conduct a study on whether the establishment of additional
terms and conditions with respect to refined sugar imports
is necessary and appropriate.
‘‘(B) ELEMENTS.—In conducting the study under
subparagraph (A), the Secretary shall examine the fol-
lowing:
‘‘(i) The need for—
‘‘(I) defining ‘refined sugar’ as having a min-
imum polarization of 99.8 degrees or higher;
‘‘(II) establishing a standard for color- or reflec-
tance-based units for refined sugar such as those
utilized by the International Commission of Uni-
form Methods of Sugar Analysis;
‘‘(III) prescribing specifications for packaging
type for refined sugar;
‘‘(IV) prescribing specifications for transpor-
tation modes for refined sugar;
‘‘(V) requiring evidence that sugar imported
as refined sugar will not undergo further refining
in the United States;
‘‘(VI) prescribing appropriate terms and condi-
tions to avoid unlawful sugar imports; and
‘‘(VII) establishing other definitions, terms and
conditions, or other requirements.
‘‘(ii) The potential impact of modifications
described in each of subclauses (I) through (VII) of
clause (i) on the domestic sugar industry.
‘‘(iii) Whether, based on the needs described in
clause (i) and the impact described in clause (ii), the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 99
establishment of additional terms and conditions is
appropriate.
‘‘(C) CONSULTATION.—In conducting the study under
subparagraph (A), the Secretary shall consult with rep-
resentatives of the domestic sugar industry and users of
refined sugar.
‘‘(D) REPORT.—Not later than 1 year after the date
of enactment of this subsection, the Secretary shall submit
to the Committee on Agriculture of the House of Represent-
atives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the findings
of the study conducted under subparagraph (A).
‘‘(3) ESTABLISHMENT OF ADDITIONAL TERMS AND CONDITIONS
PERMITTED.—
‘‘(A) IN GENERAL.—Based on the findings in the report Notice.
submitted under paragraph (2)(D), and after providing Regulations.
notice to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate, the Secretary may issue
regulations in accordance with subparagraph (B) to estab-
lish additional terms and conditions with respect to refined
sugar imports that are necessary and appropriate.
‘‘(B) PROMULGATION OF REGULATIONS.—The Secretary
may issue regulations under subparagraph (A) if the regu-
lations—
‘‘(i) do not have an adverse impact on the domestic
sugar industry; and
‘‘(ii) are consistent with the requirements of this
part, section 156 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7272), and
obligations under international trade agreements that
have been approved by Congress.’’.
(e) CLARIFICATION OF TARIFF-RATE QUOTA ADJUSTMENTS.—Sec-
tion 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk(b)(1)) is amended, in the matter preceding subparagraph
(A), by striking ‘‘if there is an’’ and inserting ‘‘for the sole purpose
of responding directly to an’’.
(f) PERIOD OF EFFECTIVENESS.—Section 359l(a) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by
striking ‘‘2023’’ and inserting ‘‘2031’’.
SEC. 10313. DAIRY POLICY UPDATES.
(a) DAIRY MARGIN COVERAGE PRODUCTION HISTORY.—
(1) DEFINITION.—Section 1401(8) of the Agricultural Act
of 2014 (7 U.S.C. 9051(8)) is amended by striking ‘‘when the
participating dairy operation first registers to participate in
dairy margin coverage’’.
(2) PRODUCTION HISTORY OF PARTICIPATING DAIRY OPER-
ATIONS.—Section 1405 of the Agricultural Act of 2014 (7 U.S.C.
9055) is amended by striking subsections (a) and (b) and
inserting the following:
‘‘(a) PRODUCTION HISTORY.—Except as provided in subsection Time periods.
(b), the production history of a dairy operation for dairy margin
coverage is equal to the highest annual milk marketings of the
participating dairy operation during any 1 of the 2021, 2022, or
2023 calendar years.
139 STAT. 100 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(b) ELECTION BY NEW DAIRY OPERATIONS.—In the case of
a participating dairy operation that has been in operation for less
than a year, the participating dairy operation shall elect 1 of the
following methods for the Secretary to determine the production
history of the participating dairy operation:
‘‘(1) The volume of the actual milk marketings for the
months the participating dairy operation has been in operation
extrapolated to a yearly amount.
Estimate. ‘‘(2) An estimate of the actual milk marketings of the
participating dairy operation based on the herd size of the
participating dairy operation relative to the national rolling
herd average data published by the Secretary.’’.
(b) DAIRY MARGIN COVERAGE PAYMENTS.—Section 1406(a)(1)(C)
of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended
by striking ‘‘5,000,000’’ each place it appears and inserting
‘‘6,000,000’’.
(c) PREMIUMS FOR DAIRY MARGINS.—
(1) TIER I.—Section 1407(b) of the Agricultural Act of 2014
(7 U.S.C. 9057(b)) is amended—
(A) in the subsection heading, by striking ‘‘5,000,000’’
and inserting ‘‘6,000,000’’; and
(B) in paragraph (1), by striking ‘‘5,000,000’’ and
inserting ‘‘6,000,000’’.
(2) TIER II.—Section 1407(c) of the Agricultural Act of 2014
(7 U.S.C. 9057(c)) is amended—
(A) in the subsection heading, by striking ‘‘5,000,000’’
and inserting ‘‘6,000,000’’; and
(B) in paragraph (1), by striking ‘‘5,000,000’’ and
inserting ‘‘6,000,000’’.
(3) PREMIUM DISCOUNTS.—Section 1407(g) of the Agricul-
tural Act of 2014 (7 U.S.C. 9057(g)) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘2019 through 2023’’ and inserting
‘‘2026 through 2031’’; and
(ii) by striking ‘‘January 2019’’ and inserting
‘‘January 2026’’; and
(B) in paragraph (2), by striking ‘‘2023’’ each place
it appears and inserting ‘‘2031’’.
(d) DURATION.—Section 1409 of the Agricultural Act of 2014
(7 U.S.C. 9059) is amended by striking ‘‘2025’’ and inserting ‘‘2031’’.
SEC. 10314. IMPLEMENTATION.
Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c))
is amended by adding at the end the following:
‘‘(5) FURTHER FUNDING.—The Secretary shall make avail-
able to carry out subtitle C of title I of the Act entitled ‘An
Act to provide for reconciliation pursuant to title II of H.
Con. Res. 14’ (119th Congress) and the amendments made
by that subtitle $50,000,000, to remain available until
expended, of which—
‘‘(A) not less than $5,000,000 shall be used to carry
out paragraphs (3) and (4) of subsection (b);
‘‘(B) $3,000,000 shall be used for activities described
in paragraph (3)(A);
‘‘(C) $3,000,000 shall be used for activities described
in paragraph (3)(B);
‘‘(D) $9,000,000 shall be used—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 101
‘‘(i) to carry out mandatory surveys of dairy produc- Surveys.
tion cost and product yield information to be reported
by manufacturers required to report under section 273
of the Agricultural Marketing Act of 1946 (7 U.S.C.
1637b), for all products processed in the same facility
or facilities; and
‘‘(ii) to publish the results of such surveys bienni- Publication.
ally; and Time period.
‘‘(E) $1,000,000 shall be used to conduct the study Study.
under subsection (d) of section 359k of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359kk).’’.
Subtitle D—Disaster Assistance Programs Determinations.
SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(a) LIVESTOCK INDEMNITY PAYMENTS.—Section 1501(b) of the
Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended—
(1) by striking paragraph (2) and inserting the following:
‘‘(2) PAYMENT RATES.—
‘‘(A) LOSSES DUE TO PREDATION.—Indemnity payments
to an eligible producer on a farm under paragraph (1)(A)
shall be made at a rate of 100 percent of the market
value of the affected livestock on the applicable date, as
determined by the Secretary.
‘‘(B) LOSSES DUE TO ADVERSE WEATHER OR DISEASE.—
Indemnity payments to an eligible producer on a farm
under subparagraph (B) or (C) of paragraph (1) shall be
made at a rate of 75 percent of the market value of the
affected livestock on the applicable date, as determined
by the Secretary.
‘‘(C) DETERMINATION OF MARKET VALUE.—In deter-
mining the market value described in subparagraphs (A)
and (B), the Secretary may consider the ability of eligible
producers to document regional price premiums for affected
livestock that exceed the national average market price
for those livestock.
‘‘(D) APPLICABLE DATE DEFINED.—In this paragraph,
the term ‘applicable date’ means, with respect to livestock,
as applicable—
‘‘(i) the day before the date of death of the livestock;
or
‘‘(ii) the day before the date of the event that
caused the harm to the livestock that resulted in a
reduced sale price.’’; and
(2) by adding at the end the following:
‘‘(5) ADDITIONAL PAYMENT FOR UNBORN LIVESTOCK.—
‘‘(A) IN GENERAL.—In the case of unborn livestock death Effective date.
losses incurred on or after January 1, 2024, the Secretary
shall make an additional payment to eligible producers
on farms that have incurred such losses in excess of the
normal mortality due to a condition specified in paragraph
(1).
‘‘(B) PAYMENT RATE.—Additional payments under
subparagraph (A) shall be made at a rate—
‘‘(i) determined by the Secretary; and
139 STAT. 102 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(ii) less than or equal to 85 percent of the payment
rate established with respect to the lowest weight class
of the livestock, as determined by the Secretary, acting
through the Administrator of the Farm Service Agency.
‘‘(C) PAYMENT AMOUNT.—The amount of a payment
to an eligible producer that has incurred unborn livestock
death losses shall be equal to the payment rate determined
under subparagraph (B) multiplied, in the case of livestock
described in—
‘‘(i) subparagraph (A), (B), or (F) of subsection
(a)(4), by 1;
‘‘(ii) subparagraph (D) of such subsection, by 2;
‘‘(iii) subparagraph (E) of such subsection, by 12;
and
‘‘(iv) subparagraph (G) of such subsection, by the
average number of birthed animals (for one gestation
cycle) for the species of each such livestock, as deter-
mined by the Secretary.
‘‘(D) UNBORN LIVESTOCK DEATH LOSSES DEFINED.—In
this paragraph, the term ‘unborn livestock death losses’
means losses of any livestock described in subparagraph
(A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was
gestating on the date of the death of the livestock.’’.
Time periods. (b) LIVESTOCK FORAGE DISASTER PROGRAM.—Section
Payments. 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C.
9081(c)(3)(D)(ii)(I)) is amended—
(1) by striking ‘‘1 monthly payment’’ and inserting ‘‘2
monthly payments’’; and
(2) by striking ‘‘county for at least 8 consecutive’’ and
inserting the following: ″county for not less than— ‘‘
‘‘(aa) 4 consecutive weeks during the
normal grazing period for the county, as deter-
mined by the Secretary, shall be eligible to
receive assistance under this paragraph in an
amount equal to 1 monthly payment using
the monthly payment rate determined under
subparagraph (B); or
‘‘(bb) 7 of the previous 8 consecutive’’.
(c) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND
FARM-RAISED FISH.—
(1) IN GENERAL.—Section 1501(d) of the Agricultural Act
of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end
the following:
‘‘(5) ASSISTANCE FOR LOSSES DUE TO BIRD DEPREDATION.—
‘‘(A) DEFINITION OF FARM-RAISED FISH.—In this para-
graph, the term ‘farm-raised fish’ means fish propagated
and reared in a controlled fresh water environment.
‘‘(B) PAYMENTS.—Eligible producers of farm-raised fish,
including fish grown as food for human consumption, shall
be eligible to receive payments under this subsection to
aid in the reduction of losses due to piscivorous birds.
‘‘(C) PAYMENT RATE.—
‘‘(i) IN GENERAL.—The payment rate for payments
under subparagraph (B) shall be determined by the
Secretary, taking into account—
‘‘(I) costs associated with the deterrence of
piscivorous birds;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 103
‘‘(II) the value of lost fish and revenue due
to bird depredation; and
‘‘(III) costs associated with disease loss from
bird depredation.
‘‘(ii) MINIMUM RATE.—The payment rate for pay-
ments under subparagraph (B) shall be not less than
$600 per acre of farm-raised fish.
‘‘(D) PAYMENT AMOUNT.—The amount of a payment
under subparagraph (B) shall be the product obtained by
multiplying—
‘‘(i) the applicable payment rate under subpara-
graph (C); and
‘‘(ii) 85 percent of the total number of acres of
farm-raised fish farms that the eligible producer has
in production for the calendar year.’’.
(2) EMERGENCY ASSISTANCE FOR HONEYBEES.—In deter- 7 USC 9081 note.
mining honeybee colony losses eligible for assistance under
section 1501(d) of the Agricultural Act of 2014 (7 U.S.C.
9081(d)), the Secretary shall utilize a normal mortality rate
of 15 percent.
(d) TREE ASSISTANCE PROGRAM.—Section 1501(e) of the Agricul-
tural Act of 2014 (7 U.S.C. 9081(e)) is amended—
(1) in paragraph (2)(B), by striking ‘‘15 percent (adjusted
for normal mortality)’’ and inserting ‘‘normal mortality’’; and
(2) in paragraph (3)—
(A) in subparagraph (A)(i), by striking ‘‘15 percent
mortality (adjusted for normal mortality)’’ and inserting
‘‘normal mortality’’; and
(B) in subparagraph (B)—
(i) by striking ‘‘50’’ and inserting ‘‘65’’; and
(ii) by striking ‘‘15 percent damage or mortality
(adjusted for normal tree damage and mortality)’’ and
inserting ‘‘normal tree damage or mortality’’.
Subtitle E—Crop Insurance
SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT.
(a) DEFINITIONS.—
(1) IN GENERAL.—Section 502(b)(3) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking
‘‘5’’ and inserting ‘‘10’’.
(2) CONFORMING AMENDMENT.—Section 522(c)(7) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by
striking subparagraph (F).
(b) INCREASE IN ASSISTANCE.—Section 508(e) of the Federal
Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at
the end the following:
‘‘(9) ADDITIONAL SUPPORT.—
‘‘(A) IN GENERAL.—In addition to any other provision
of this subsection (except paragraph (2)(A)) regarding pay-
ment of a portion of premiums, a beginning farmer or
rancher shall receive additional premium assistance that
is the number of percentage points specified in subpara-
graph (B) greater than the premium assistance that would
otherwise be available for the applicable policy, plan of
139 STAT. 104 PUBLIC LAW 119–21—JULY 4, 2025
insurance, and coverage level selected by the beginning
farmer or rancher.
Time periods. ‘‘(B) PERCENTAGE POINTS ADJUSTMENTS.—The percent-
age points referred to in subparagraph (A) are the fol-
lowing:
‘‘(i) For each of the first and second reinsurance
years that a beginning farmer or rancher participates
as a beginning farmer or rancher in the applicable
policy or plan of insurance, 5 percentage points.
‘‘(ii) For the third reinsurance year that a begin-
ning farmer or rancher participates as a beginning
farmer or rancher in the applicable policy or plan
of insurance, 3 percentage points.
‘‘(iii) For the fourth reinsurance year that a begin-
ning farmer or rancher participates as a beginning
farmer or rancher in the applicable policy or plan
of insurance, 1 percentage point.’’.
SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORD-
ABILITY.
(a) COVERAGE LEVEL.—Section 508(c)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)(4)) is amended—
(1) in subparagraph (A), by striking clause (ii) and inserting
the following:
‘‘(ii) may be purchased at any level not to exceed—
‘‘(I) in the case of the individual yield or rev-
enue coverage, 85 percent;
‘‘(II) in the case of individual yield or revenue
coverage aggregated across multiple commodities,
90 percent; and
‘‘(III) in the case of area yield or revenue cov-
erage (as determined by the Corporation), 95 per-
cent.’’; and
(2) in subparagraph (C)—
(A) in clause (ii), by striking ‘‘14’’ and inserting ‘‘10’’;
and
(B) in clause (iii)(I), by striking ‘‘86’’ and inserting
‘‘90’’.
(b) PREMIUM SUBSIDY.—Section 508(e)(2)(H)(i) of the Federal
Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by
striking ‘‘65’’ and inserting ‘‘80’’.
Effective dates. SEC. 10503. ADMINISTRATIVE AND OPERATING EXPENSE ADJUST-
MENTS.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) is amended by adding at the end the following:
‘‘(10) ADDITIONAL EXPENSES.—
Payment. ‘‘(A) IN GENERAL.—Beginning with the 2026 reinsur-
ance year, and for each reinsurance year thereafter, in
addition to the terms and conditions of the Standard
Reinsurance Agreement, to cover additional expenses for
loss adjustment procedures, the Corporation shall pay an
additional administrative and operating expense subsidy
to approved insurance providers for eligible contracts.
Contracts. ‘‘(B) PAYMENT AMOUNT.—In the case of an eligible con-
tract, the payment to an approved insurance provider
required under subparagraph (A) shall be the amount equal
to 6 percent of the net book premium.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 105
‘‘(C) DEFINITIONS.—In this paragraph:
‘‘(i) ELIGIBLE CONTRACT.—The term ‘eligible con-
tract’—
‘‘(I) means a crop insurance contract entered
into by an approved insurance provider in an
eligible State; and
‘‘(II) does not include a contract for—
‘‘(aa) catastrophic risk protection under
subsection (b);
‘‘(bb) an area-based plan of insurance or
similar plan of insurance, as determined by
the Corporation; or
‘‘(cc) a policy under which an approved
insurance provider does not incur loss adjust-
ment expenses, as determined by the Corpora-
tion.
‘‘(ii) ELIGIBLE STATE.—The term ‘eligible State’
means a State in which, with respect to an insurance
year, the loss ratio for eligible contracts is greater
than 120 percent of the total net book premium written
by all approved insurance providers.
‘‘(11) SPECIALTY CROPS.—
‘‘(A) MINIMUM REIMBURSEMENT.—Beginning with the
2026 reinsurance year, and for each reinsurance year there-
after, the rate of reimbursement to approved insurance
providers and agents for administrative and operating
expenses with respect to crop insurance contracts covering
agricultural commodities described in section 101 of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621
note; Public Law 108–465) shall be equal to or greater
than the percentage that is the greater of the following:
‘‘(i) 17 percent of the premium used to define loss
ratio.
‘‘(ii) The percent of the premium used to define
loss ratio that is otherwise applicable for the reinsur-
ance year under the terms of the Standard Reinsurance
Agreement in effect for the reinsurance year.
‘‘(B) OTHER CONTRACTS.—In carrying out subparagraph
(A), the Corporation shall not reduce, with respect to any
reinsurance year, the amount or the rate of reimbursement
to approved insurance providers and agents under the
Standard Reinsurance Agreement described in clause (ii)
of such subparagraph for administrative and operating
expenses with respect to contracts covering agricultural
commodities that are not subject to such subparagraph.
‘‘(C) ADMINISTRATION.—The requirements of this para-
graph and the adjustments made pursuant to this para-
graph shall not be considered a renegotiation under para-
graph (8)(A).
‘‘(12) A&O INFLATION ADJUSTMENT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), begin- Reimbursements.
ning with the 2026 reinsurance year, and for each reinsur-
ance year thereafter, the Corporation shall increase the
total administrative and operating expense reimbursements
otherwise required under the Standard Reinsurance Agree-
ment in effect for the reinsurance year in order to account
for inflation, in a manner consistent with the increases
139 STAT. 106 PUBLIC LAW 119–21—JULY 4, 2025
provided with respect to the 2011 through 2015 reinsurance
years under the enclosure included in Risk Management
Agency Bulletin numbered MGR–10–007 and dated June
30, 2010.
‘‘(B) SPECIAL RULE FOR 2026 REINSURANCE YEAR.—The
increase under subparagraph (A) for the 2026 reinsurance
year shall not exceed the percentage change for the pre-
ceding reinsurance year included in the Consumer Price
Index for All Urban Consumers published by the Bureau
of Labor Statistics of the Department of Labor.
‘‘(C) ADMINISTRATION.—An increase under subpara-
graph (A)—
Applicability. ‘‘(i) shall apply with respect to all contracts cov-
Contracts. ering agricultural commodities that were subject to
Time period. an increase during the period of the 2011 through
2015 reinsurance years under the enclosure referred
to in that subparagraph; and
‘‘(ii) shall not be considered a renegotiation under
paragraph (8)(A).’’.
SEC. 10504. PREMIUM SUPPORT.
Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(2)) is amended—
(1) in subparagraph (C)(i), by striking ‘‘64’’ and inserting
‘‘69’’;
(2) in subparagraph (D)(i), by striking ‘‘59’’ and inserting
‘‘64’’;
(3) in subparagraph (E)(i), by striking ‘‘55’’ and inserting
‘‘60’’;
(4) in subparagraph (F)(i), by striking ‘‘48’’ and inserting
‘‘51’’; and
(5) in subparagraph (G)(i), by striking ‘‘38’’ and inserting
‘‘41’’.
SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY.
Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C.
1515(l)(2)) is amended by striking ‘‘than’’ and all that follows
through the period at the end and inserting the following: ‘‘than—
‘‘(A) $4,000,000 for each of fiscal years 2009 through
2025; and
‘‘(B) $6,000,000 for fiscal year 2026 and each subse-
quent fiscal year.’’.
SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY.
Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7
U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding sub-
clause (I), by striking ‘‘for each fiscal year’’ and inserting ‘‘for
each of fiscal years 2014 through 2025 and $10,000,000 for fiscal
year 2026 and each fiscal year thereafter’’.
SEC. 10507. POULTRY INSURANCE PILOT PROGRAM.
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523)
is amended by adding at the end the following:
‘‘(j) POULTRY INSURANCE PILOT PROGRAM.—
Determination. ‘‘(1) IN GENERAL.—Notwithstanding subsection (a)(2), the
Corporation shall establish a pilot program under which con-
tract poultry growers, including growers of broilers and laying
hens, may elect to receive index-based insurance from extreme
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 107
weather-related risk resulting in increased utility costs
(including costs of natural gas, propane, electricity, water, and
other appropriate costs, as determined by the Corporation)
associated with poultry production.
‘‘(2) STAKEHOLDER ENGAGEMENT.—The Corporation shall
engage with poultry industry stakeholders in establishing the
pilot program under paragraph (1).
‘‘(3) LOCATION.—The pilot program established under para- Evaluation.
graph (1) shall be conducted in a sufficient number of counties
to provide a comprehensive evaluation of the feasibility,
effectiveness, and demand among producers in the top poultry
producing States, as determined by the Corporation.
‘‘(4) APPROVAL OF POLICY OR PLAN.—Notwithstanding sec-
tion 508(l), the Board shall approve a policy or plan of insurance
based on the pilot program under paragraph (1)—
‘‘(A) in accordance with section 508(h); and
‘‘(B) not later than 2 years after the date of enactment Deadline.
of this subsection.’’.
Subtitle F—Additional Investments in Time periods.
Rural America
SEC. 10601. CONSERVATION.
(a) IN GENERAL.—Section 1241(a) of the Food Security Act
of 1985 (16 U.S.C. 3841(a)) is amended—
(1) in paragraph (2), by striking subparagraphs (A) through
(F) and inserting the following:
‘‘(A) $625,000,000 for fiscal year 2026;
‘‘(B) $650,000,000 for fiscal year 2027;
‘‘(C) $675,000,000 for fiscal year 2028;
‘‘(D) $700,000,000 for fiscal year 2029;
‘‘(E) $700,000,000 for fiscal year 2030; and
‘‘(F) $700,000,000 for fiscal year 2031.’’; and
(2) in paragraph (3)—
(A) in subparagraph (A), by striking clauses (i) through
(v) and inserting the following:
‘‘(i) $2,655,000,000 for fiscal year 2026;
‘‘(ii) $2,855,000,000 for fiscal year 2027;
‘‘(iii) $3,255,000,000 for fiscal year 2028;
‘‘(iv) $3,255,000,000 for fiscal year 2029;
‘‘(v) $3,255,000,000 for fiscal year 2030; and
‘‘(vi) $3,255,000,000 for fiscal year 2031; and’’; and
(B) in subparagraph (B), by striking clauses (i) through
(v) and inserting the following:
‘‘(i) $1,300,000,000 for fiscal year 2026;
‘‘(ii) $1,325,000,000 for fiscal year 2027;
‘‘(iii) $1,350,000,000 for fiscal year 2028;
‘‘(iv) $1,375,000,000 for fiscal year 2029;
‘‘(v) $1,375,000,000 for fiscal year 2030; and
‘‘(vi) $1,375,000,000 for fiscal year 2031.’’.
(b) REGIONAL CONSERVATION PARTNERSHIP PROGRAM.—Section
1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is
amended by striking subsection (a) and inserting the following:
‘‘(a) AVAILABILITY OF FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out the pro-
gram, to the maximum extent practicable—
139 STAT. 108 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(1) $425,000,000 for fiscal year 2026;
‘‘(2) $450,000,000 for fiscal year 2027;
‘‘(3) $450,000,000 for fiscal year 2028;
‘‘(4) $450,000,000 for fiscal year 2029;
‘‘(5) $450,000,000 for fiscal year 2030; and
‘‘(6) $450,000,000 for fiscal year 2031.’’.
(c) GRASSROOTS SOURCE WATER PROTECTION PROGRAM.—Sec-
tion 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–
2(b)) is amended—
(1) in paragraph (1), by striking ‘‘2023’’ and inserting
‘‘2031’’; and
(2) in paragraph (3)—
(A) in subparagraph (A), by striking ‘‘and’’ at the end;
(B) in subparagraph (B), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
Effective date. ‘‘(C) $1,000,000 beginning in fiscal year 2026, to remain
available until expended.’’.
(d) VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PRO-
GRAM.—Section 1240R(f)(1) of the Food Security Act of 1985 (16
U.S.C. 3839bb–5(f)(1)) is amended—
(1) by striking ‘‘2023, and’’ and inserting ‘‘2023,’’; and
(2) by inserting ‘‘, and $70,000,000 for the period of fiscal
years 2025 through 2031’’ before the period at the end.
(e) WATERSHED PROTECTION AND FLOOD PREVENTION.—Section
15 of the Watershed Protection and Flood Prevention Act (16 U.S.C.
1012a) is amended by striking ‘‘$50,000,000 for fiscal year 2019
and each fiscal year thereafter’’ and inserting ‘‘$150,000,000 for
fiscal year 2026 and each fiscal year thereafter, to remain available
until expended’’.
(f) FERAL SWINE ERADICATION AND CONTROL PILOT PROGRAM.—
Section 2408(g)(1) of the Agriculture Improvement Act of 2018
(7 U.S.C. 8351 note; Public Law 115–334) is amended—
(1) by striking ‘‘2023 and’’ and inserting ‘‘2023,’’; and
(2) by inserting ‘‘, and $105,000,000 for the period of fiscal
years 2025 through 2031’’ before the period at the end.
(g) RESCISSION.—The unobligated balances of amounts appro-
priated by section 21001(a) of Public Law 117–169 (136 Stat. 2015)
are rescinded.
7 USC 5623a. SEC. 10602. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PRO-
GRAM.
(a) IN GENERAL.—The Secretary of Agriculture shall carry out
a program to encourage the accessibility, development, mainte-
nance, and expansion of commercial export markets for United
States agricultural commodities.
(b) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary of Agriculture shall make available to carry
out this section $285,000,000 for fiscal year 2027 and each fiscal
year thereafter.
SEC. 10603. NUTRITION.
Section 203D(d)(5) of the Emergency Food Assistance Act of
1983 (7 U.S.C. 7507(d)(5)) is amended by striking ‘‘2024’’ and
inserting ‘‘2031’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 109
SEC. 10604. RESEARCH.
(a) URBAN, INDOOR, AND OTHER EMERGING AGRICULTURAL
PRODUCTION RESEARCH, EDUCATION, AND EXTENSION INITIATIVE.—
Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking
‘‘fiscal year 2024, to remain available until expended’’ and inserting
‘‘each of fiscal years 2024 through 2031’’.
(b) FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH.—Sec-
tion 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C.
5939(g)(1)(A)) is amended by adding at the end the following:
‘‘(iv) FURTHER FUNDING.—Not later than 30 days Deadline.
after the date of enactment of this clause, of the funds Transfer.
of the Commodity Credit Corporation, the Secretary
shall transfer to the Foundation to carry out this sec-
tion $37,000,000, to remain available until expended.’’.
(c) SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS.—Sec-
tion 1446(b)(1) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended
by adding at the end the following:
‘‘(C) FURTHER FUNDING.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall make avail-
able to carry out this section $60,000,000 for fiscal year
2026, to remain available until expended.’’.
(d) ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.—Section 1680 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5933) is amended—
(1) in subsection (c)(2), by inserting ‘‘and subsection (d)’’
after ‘‘paragraph (1)’’; and
(2) by adding at the end the following:
‘‘(d) MANDATORY FUNDING.—Subject to subsection (c)(2), of the
funds of the Commodity Credit Corporation, the Secretary shall
use to carry out this section $8,000,000 for fiscal year 2026, to
remain available until expended.’’.
(e) SPECIALTY CROP RESEARCH INITIATIVE.—Section 412(k)(1)(B)
of the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7632(k)(1)(B)) is amended by striking ‘‘section
$80,000,000 for fiscal year 2014’’ and inserting the following: ‘‘sec-
tion—
‘‘(i) $80,000,000 for each of fiscal years 2014
through 2025; and
‘‘(ii) $175,000,000 for fiscal year 2026’’.
(f) RESEARCH FACILITIES ACT.—Section 6 of the Research Facili-
ties Act (7 U.S.C. 390d) is amended—
(1) in subsection (c), by striking ‘‘subsection (a)’’ and
inserting ‘‘subsections (a) and (e)’’; and
(2) by adding at the end the following:
‘‘(e) MANDATORY FUNDING.—Subject to subsections (b), (c), and
(d), of the funds of the Commodity Credit Corporation, the Secretary
shall make available to carry out the competitive grant program
under section 4 $125,000,000 for fiscal year 2026 and each fiscal
year thereafter.’’.
SEC. 10605. ENERGY.
Section 9005(g)(1)(F) of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking
‘‘2024’’ and inserting ‘‘2031’’.
139 STAT. 110 PUBLIC LAW 119–21—JULY 4, 2025
SEC. 10606. HORTICULTURE.
(a) PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
PREVENTION.—Section 420(f) of the Plant Protection Act (7 U.S.C.
7721(f)) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the end;
(2) by redesignating paragraph (6) as paragraph (7);
(3) by inserting after paragraph (5) the following:
‘‘(6) $75,000,000 for each of fiscal years 2018 through 2025;
and’’; and
(4) in paragraph (7) (as so redesignated), by striking
‘‘$75,000,000 for fiscal year 2018’’ and inserting ‘‘$90,000,000
for fiscal year 2026’’.
(b) SPECIALTY CROP BLOCK GRANTS.—Section 101(l)(1) of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note;
Public Law 108–465) is amended—
(1) in subparagraph (D), by striking ‘‘and’’ at the end;
(2) by redesignating subparagraph (E) as subparagraph
(F);
(3) by inserting after subparagraph (D) the following:
‘‘(E) $85,000,000 for each of fiscal years 2018 through
2025; and’’; and
(4) in subparagraph (F) (as so redesignated), by striking
‘‘$85,000,000 for fiscal year 2018’’ and inserting ‘‘$100,000,000
for fiscal year 2026’’.
(c) ORGANIC PRODUCTION AND MARKET DATA INITIATIVE.—Sec-
tion 7407(d)(1) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5925c(d)(1)) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at the end;
(2) in subparagraph (C), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) $10,000,000 for the period of fiscal years 2026
through 2031.’’.
(d) MODERNIZATION AND IMPROVEMENT OF INTERNATIONAL
TRADE TECHNOLOGY SYSTEMS AND DATA COLLECTION.—Section
2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C.
6522(c)(4)) is amended, in the matter preceding subparagraph (A),
by striking ‘‘and $1,000,000 for fiscal year 2024’’ and inserting
‘‘, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for
fiscal year 2026’’.
(e) NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.—
Section 10606(d)(1)(C) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking ‘‘2024’’
and inserting ‘‘2031’’.
(f) MULTIPLE CROP AND PESTICIDE USE SURVEY.—Section
10109(c) of the Agriculture Improvement Act of 2018 (Public Law
115–334; 132 Stat. 4907) is amended by adding at the end the
following:
‘‘(3) FURTHER MANDATORY FUNDING.—Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry
out this section $5,000,000 for fiscal year 2026, to remain
available until expended.’’.
SEC. 10607. MISCELLANEOUS.
(a) ANIMAL DISEASE PREVENTION AND MANAGEMENT.—Section
10409A(d)(1) of the Animal Health Protection Act (7 U.S.C.
8308a(d)(1)) is amended—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 111
(1) in subparagraph (B)—
(A) in the heading, by striking ‘‘SUBSEQUENT FISCAL
YEARS’’ and inserting ‘‘FISCAL YEARS 2023 THROUGH 2025’’;
and
(B) by striking ‘‘fiscal year 2023 and each fiscal year
thereafter’’ and inserting ‘‘each of fiscal years 2023 through
2025’’; and
(2) by adding at the end the following:
‘‘(C) FISCAL YEARS 2026 THROUGH 2030.—Of the funds
of the Commodity Credit Corporation, the Secretary shall
make available to carry out this section $233,000,000 for
each of fiscal years 2026 through 2030, of which—
‘‘(i) not less than $10,000,000 shall be made avail-
able for each such fiscal year to carry out subsection
(a);
‘‘(ii) not less than $70,000,000 shall be made avail-
able for each such fiscal year to carry out subsection
(b); and
‘‘(iii) not less than $153,000,000 shall be made
available for each such fiscal year to carry out sub-
section (c).
‘‘(D) SUBSEQUENT FISCAL YEARS.—Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out this section $75,000,000 for fiscal
year 2031 and each fiscal year thereafter, of which not
less than $45,000,000 shall be made available for each
of those fiscal years to carry out subsection (b).’’.
(b) SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.—
Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1627a(c)) is amended—
(1) by striking ‘‘2019, and’’ and inserting ‘‘2019,’’; and
(2) by inserting ‘‘and $3,000,000 for fiscal year 2026,’’ after
‘‘fiscal year 2024,’’
(c) PIMA AGRICULTURE COTTON TRUST FUND.—Section 12314
of the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law
113–79) is amended—
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ‘‘2024’’ and inserting ‘‘2031’’; and
(2) in subsection (h), by striking ‘‘2024’’and inserting ‘‘2031’’.
(d) AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST
FUND.—Section 12315 of the Agricultural Act of 2014 (7 U.S.C.
7101 note; Public Law 113–79) is amended by striking ‘‘2024’’ each
place it appears and inserting ‘‘2031’’.
(e) WOOL RESEARCH AND PROMOTION.—Section 12316(a) of the
Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113–
79) is amended by striking ‘‘2024’’ and inserting ‘‘2031’’.
(f) EMERGENCY CITRUS DISEASE RESEARCH AND DEVELOPMENT
TRUST FUND.—Section 12605(d) of the Agriculture Improvement
Act of 2018 (7 U.S.C. 7632 note; Public Law 115–334) is amended
by striking ‘‘2024’’ and inserting ‘‘2031’’.
139 STAT. 112 PUBLIC LAW 119–21—JULY 4, 2025
Appropriations TITLE II—COMMITTEE ON ARMED
authorizations.
Time periods. SERVICES
Expiration date.
SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR IMPROVING THE QUALITY OF LIFE FOR MILITARY
PERSONNEL.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029—
(1) $230,480,000 for restoration and modernization costs
under the Marine Corps Barracks 2030 initiative;
(2) $119,000,000 for base operating support costs under
the Marine Corps;
(3) $1,000,000,000 for Army, Navy, Air Force, and Space
Force sustainment, restoration, and modernization of military
unaccompanied housing;
(4) $2,000,000,000 for the Defense Health Program;
(5) $2,900,000,000 to supplement the basic allowance for
housing payable to members of the Army, Air Force, Navy,
Marine Corps, and Space Force , notwithstanding section 403
of title 37, United States Code;
(6) $50,000,000 for bonuses, special pays, and incentive
pays for members of the Army, Air Force, Navy, Marine Corps,
and Space Force pursuant to titles 10 and 37, United States
Code;
(7) $10,000,000 for the Defense Activity for Non-Traditional
Education Support’s Online Academic Skills Course program
for members of the Army, Air Force, Navy, Marine Corps,
and Space Force;
(8) $100,000,000 for tuition assistance for members of the
Army, Air Force, Navy, Marine Corps, and Space Force pursu-
ant to title 10, United States Code;
(9) $100,000,000 for child care fee assistance for members
of the Army, Air Force, Navy, Marine Corps, and Space Force
under part II of chapter 88 of title 10, United States Code;
(10) $590,000,000 to increase the Temporary Lodging
Expense Allowance under chapter 8 of title 37, United States
Code, to 21 days;
(11) $100,000,000 for Department of Defense Impact Aid
payments to local educational agencies under section 2008 of
title 10, United States Code;
(12) $10,000,000 for military spouse professional licensure
under section 1784 of title 10, United States Code;
(13) $6,000,000 for Armed Forces Retirement Home facili-
ties;
(14) $100,000,000 for the Defense Community Infrastruc-
ture Program;
(15) $100,000,000 for Defense Advanced Research Projects
Agency (DARPA) casualty care research; and
(16) $62,000,000 for modernization of Department of
Defense childcare center staffing.
10 USC 2875 (b) TEMPORARY INCREASE IN PERCENTAGE OF VALUE OF AUTHOR-
note. IZED INVESTMENT IN CERTAIN PRIVATIZED MILITARY HOUSING
PROJECTS.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 113
(1) IN GENERAL.—During the period beginning on the date Applicability.
of the enactment of this section and ending on September
30, 2029, the Secretary concerned shall apply—
(A) paragraph (1) of subsection (c) of section 2875
of title 10, United States Code, by substituting ‘‘60 percent’’
for ‘‘33 1⁄3 percent’’; and
(B) paragraph (2) of such subsection by substituting
‘‘60 percent’’ for ‘‘45 percent’’.
(2) SECRETARY CONCERNED DEFINED.—In this subsection,
the term ‘‘Secretary concerned’’ has the meaning given such
term in section 101 of title 10, United States Code.
(c) TEMPORARY AUTHORITY FOR ACQUISITION OR CONSTRUCTION
OF PRIVATIZED MILITARY UNACCOMPANIED HOUSING.—Section 2881a
of title 10, United States Code, is amended— 10 USC
(1) by striking the heading and inserting ‘‘Temporary prec. 2871.
authority for acquisition or construction of privatized
military unaccompanied housing’’;
(2) by striking ‘‘Secretary of the Navy’’ each place it appears
and inserting ‘‘Secretary concerned’’;
(3) by striking ‘‘under the pilot projects’’ each place it
appears and inserting ‘‘pursuant to this section’’;
(4) in subsection (a)—
(A) by striking the heading and inserting ‘‘IN GEN-
ERAL’’; and
(B) by striking ‘‘carry out not more than three pilot
projects under the authority of this section or another
provision of this subchapter to use the private sector’’ and
inserting ‘‘use the authority under this subchapter to enter
into contracts with appropriate private sector entities’’;
(5) in subsection (c), by striking ‘‘privatized housing’’ and
inserting ‘‘privatized housing units’’;
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e) (as so redesignated)—
(A) by striking ‘‘under the pilot programs’’ and
inserting ‘‘under this section’’; and
(B) by striking ‘‘September 30, 2009’’ and inserting
‘‘September 30, 2029’’.
SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR SHIPBUILDING.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $250,000,000 for the expansion of accelerated Training
in Defense Manufacturing program;
(2) $250,000,000 for United States production of turbine
generators for shipbuilding industrial base;
(3) $450,000,000 for United States additive manufacturing
for wire production and machining capacity for shipbuilding
industrial base;
(4) $492,000,000 for next-generation shipbuilding tech-
niques;
(5) $85,000,000 for United States-made steel plate for ship-
building industrial base;
(6) $50,000,000 for machining capacity for naval propellers
for shipbuilding industrial base;
139 STAT. 114 PUBLIC LAW 119–21—JULY 4, 2025
(7) $110,000,000 for rolled steel and fabrication facility
for shipbuilding industrial base;
(8) $400,000,000 for expansion of collaborative campus for
naval shipbuilding;
(9) $450,000,000 for application of autonomy and artificial
intelligence to naval shipbuilding;
(10) $500,000,000 for the adoption of advanced manufac-
turing techniques in the shipbuilding industrial base;
(11) $500,000,000 for additional dry-dock capability;
(12) $50,000,000 for the expansion of cold spray repair
technologies;
(13) $450,000,000 for additional maritime industrial
workforce development programs;
(14) $750,000,000 for additional supplier development
across the naval shipbuilding industrial base;
(15) $250,000,000 for additional advanced manufacturing
processes across the naval shipbuilding industrial base;
(16) $4,600,000,000 for a second Virginia-class submarine
in fiscal year 2026;
(17) $5,400,000,000 for two additional Guided Missile
Destroyer (DDG) ships;
(18) $160,000,000 for advanced procurement for Landing
Ship Medium;
(19) $1,803,941,000 for procurement of Landing Ship
Medium;
(20) $295,000,000 for development of a second Landing
Craft Utility shipyard and production of additional Landing
Craft Utility;
(21) $100,000,000 for advanced procurement for light
replenishment oiler program;
(22) $600,000,000 for the lease or purchase of new ships
through the National Defense Sealift Fund;
(23) $2,725,000,000 for the procurement of T-AO oilers;
(24) $500,000,000 for cost-to-complete for rescue and sal-
vage ships;
(25) $300,000,000 for production of ship-to-shore connec-
tors;
(26) $1,470,000,000 for the implementation of a multi-ship
amphibious warship contract;
(27) $80,000,000 for accelerated development of vertical
launch system reloading at sea;
(28) $250,000,000 for expansion of Navy corrosion control
programs;
(29) $159,000,000 for leasing of ships for Marine Corps
operations;
(30) $1,534,000,000 for expansion of small unmanned sur-
face vessel production;
(31) $2,100,000,000 for development, procurement, and
integration of purpose-built medium unmanned surface vessels;
(32) $1,300,000,000 for expansion of unmanned underwater
vehicle production;
(33) $188,360,000 for the development and testing of mari-
time robotic autonomous systems and enabling technologies;
(34) $174,000,000 for the development of a Test Resource
Management Center robotic autonomous systems proving
ground;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 115
(35) $250,000,000 for the development, production, and
integration of wave-powered unmanned underwater vehicles;
and
(36) $150,000,000 for retention of inactive reserve fleet
ships.
SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR INTEGRATED AIR AND MISSILE DEFENSE.
(a) NEXT GENERATION MISSILE DEFENSE TECHNOLOGIES.—In
addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money
in the Treasury not otherwise appropriated, to remain available
until September 30, 2029—
(1) $250,000,000 for development and testing of directed
energy capabilities by the Under Secretary for Research and
Engineering;
(2) $500,000,000 for national security space launch infra-
structure;
(3) $2,000,000,000 for air moving target indicator military
satellites;
(4) $400,000,000 for expansion of Multi-Service Advanced
Capability Hypersonic Test Bed program;
(5) $5,600,000,000 for development of space-based and boost
phase intercept capabilities;
(6) $7,200,000,000 for the development, procurement, and
integration of military space-based sensors; and
(7) $2,550,000,000 for the development, procurement, and
integration of military missile defense capabilities.
(b) LAYERED HOMELAND DEFENSE.—In addition to amounts
otherwise available, there are appropriated to the Secretary of
Defense for fiscal year 2025, out of any money in the Treasury
not otherwise appropriated, to remain available until September
30, 2029—
(1) $2,200,000,000 for acceleration of hypersonic defense
systems;
(2) $800,000,000 for accelerated development and deploy-
ment of next-generation intercontinental ballistic missile
defense systems;
(3) $408,000,000 for Army space and strategic missile test
range infrastructure restoration and modernization in the
United States Indo-Pacific Command area of operations west
of the international dateline;
(4) $1,975,000,000 for improved ground-based missile
defense radars; and
(5) $530,000,000 for the design and construction of Missile
Defense Agency missile instrumentation range safety ship.
SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR MUNITIONS AND DEFENSE SUPPLY CHAIN RESIL-
IENCY.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029—
(1) $400,000,000 for the development, production, and
integration of Navy and Air Force long-range anti-ship missiles;
(2) $380,000,000 for production capacity expansion for Navy
and Air Force long-range anti-ship missiles;
139 STAT. 116 PUBLIC LAW 119–21—JULY 4, 2025
(3) $490,000,000 for the development, production, and
integration of Navy and Air Force long-range air-to-surface
missiles;
(4) $94,000,000 for the development, production, and
integration of alternative Navy and Air Force long-range air-
to-surface missiles;
(5) $630,000,000 for the development, production, and
integration of long-range Navy air defense and anti-ship mis-
siles;
(6) $688,000,000 for the development, production, and
integration of long-range multi-service cruise missiles;
(7) $250,000,000 for production capacity expansion and sup-
plier base strengthening of long-range multi-service cruise mis-
siles;
(8) $70,000,000 for the development, production, and
integration of short-range Navy and Marine Corps anti-ship
missiles;
(9) $100,000,000 for the development of an anti-ship seeker
for short-range Army ballistic missiles;
(10) $175,000,000 for production capacity expansion for
next-generation Army medium-range ballistic missiles;
(11) $50,000,000 for the mitigation of diminishing manufac-
turing sources for medium-range air-to-air missiles;
(12) $250,000,000 for the procurement of medium-range
air-to-air missiles;
(13) $225,000,000 for the expansion of production capacity
for medium-range air-to-air missiles;
(14) $50,000,000 for the development of second sources
for components of short-range air-to-air missiles;
(15) $325,000,000 for production capacity improvements
for air-launched anti-radiation missiles;
(16) $50,000,000 for the accelerated development of Army
next-generation medium-range anti-ship ballistic missiles;
(17) $114,000,000 for the production of Army next-genera-
tion medium-range ballistic missiles;
(18) $300,000,000 for the production of Army medium-range
ballistic missiles;
(19) $85,000,000 for the accelerated development of Army
long-range ballistic missiles;
(20) $400,000,000 for the production of heavyweight tor-
pedoes;
(21) $200,000,000 for the development, procurement, and
integration of mass-producible autonomous underwater muni-
tions;
(22) $70,000,000 for the improvement of heavyweight tor-
pedo maintenance activities;
(23) $200,000,000 for the production of lightweight tor-
pedoes;
(24) $500,000,000 for the development, procurement, and
integration of maritime mines;
(25) $50,000,000 for the development, procurement, and
integration of new underwater explosives;
(26) $55,000,000 for the development, procurement, and
integration of lightweight multi-mission torpedoes;
(27) $80,000,000 for the production of sonobuoys;
(28) $150,000,000 for the development, procurement, and
integration of air-delivered long-range maritime mines;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 117
(29) $61,000,000 for the acceleration of Navy expeditionary
loitering munitions deployment;
(30) $50,000,000 for the acceleration of one-way attack
unmanned aerial systems with advanced autonomy;
(31) $1,000,000,000 for the expansion of the one-way attack
unmanned aerial systems industrial base;
(32) $200,000,000 for investments in solid rocket motor
industrial base through the Industrial Base Fund established
under section 4817 of title 10, United States Code;
(33) $400,000,000 for investments in the emerging solid
rocket motor industrial base through the Industrial Base Fund
established under section 4817 of title 10, United States Code;
(34) $42,000,000 for investments in second sources for
large-diameter solid rocket motors for hypersonic missiles;
(35) $1,000,000,000 for the creation of next-generation auto-
mated munitions production factories;
(36) $170,000,000 for the development of advanced radar
depot for repair, testing, and production of radar and electronic
warfare systems;
(37) $25,000,000 for the expansion of the Department of
Defense industrial base policy analysis workforce;
(38) $30,300,000 for the repair of Army missiles;
(39) $100,000,000 for the production of small and medium
ammunition;
(40) $2,000,000,000 for additional activities to improve the
United States stockpile of critical minerals through the
National Defense Stockpile Transaction Fund, authorized by
subchapter III of chapter 5 of title 50, United States Code;
(41) $10,000,000 for the expansion of the Department of
Defense armaments cooperation workforce;
(42) $500,000,000 for the expansion of the Defense
Exportability Features program;
(43) $350,000,000 for production of Navy long-range air
and missile defense interceptors;
(44) $93,000,000 for replacement of Navy long-range air
and missile defense interceptors;
(45) $100,000,000 for development of a second solid rocket
motor source for Navy air defense and anti ship missiles;
(46) $65,000,000 for expansion of production capacity of
Missile Defense Agency long-range anti-ballistic missiles;
(47) $225,000,000 for expansion of production capacity for
Navy air defense and anti-ship missiles;
(48) $103,300,000 for expansion of depot level maintenance
facility for Navy long-range air and missile defense interceptors;
(49) $18,000,000 for creation of domestic source for guid-
ance section of Navy short-range air defense missiles;
(50) $65,000,000 for integration of Army medium-range
air and missile defense interceptor with Navy ships;
(51) $176,100,000 for production of Army long-range mov-
able missile defense radar;
(52) $167,000,000 for accelerated fielding of Army short-
range gun-based air and missile defense system;
(53) $40,000,000 for development of low-cost alternatives
to air and missile defense interceptors;
(54) $50,000,000 for acceleration of Army next-generation
shoulder-fired air defense system;
139 STAT. 118 PUBLIC LAW 119–21—JULY 4, 2025
(55) $91,000,000 for production of Army next-generation
shoulder-fired air defense system;
(56) $500,000,000 for development, production, and integra-
tion of counter-unmanned aerial systems programs;
(57) $350,000,000 for development, production, and integra-
tion of non-kinetic counter-unmanned aerial systems programs;
(58) $250,000,000 for development, production, and integra-
tion of land-based counter-unmanned aerial systems programs;
(59) $200,000,000 for development, production, and integra-
tion of ship-based counter-unmanned aerial systems programs;
(60) $400,000,000 for acceleration of hypersonic strike pro-
grams;
(61) $167,000,000 for procurement of additional launchers
for Army medium-range air and missile defense interceptors;
(62) $500,000,000 for expansion of defense advanced manu-
facturing techniques;
(63) $1,000,000 for establishment of the Joint Energetics
Transition Office;
(64) $200,000,000 for acceleration of Army medium-range
air and missile defense interceptors;
(65) $150,000,000 for additive manufacturing for propel-
lant;
(66) $250,000,000 for expansion and acceleration of pene-
trating munitions production; and
(67) $50,000,000 for development, procurement, and
integration of precision extended-range artillery.
(b) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029,
$3,300,000,000 for grants and purchase commitments made pursu-
ant to the Industrial Base Fund established under section 4817
of title 10, United States Code.
(c) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029,
$5,000,000,000 for investments in critical minerals supply chains
made pursuant to the Industrial Base Fund established under
section 4817 of title 10, United States Code.
(d) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary of Defense, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, $500,000,000 to the ‘‘Depart-
ment of Defense Credit Program Account’’ to carry out the capital
assistance program, including loans, loan guarantees, and technical
assistance, established under section 149(e) of title 10, United
States Code, for critical minerals and related industries and
projects, including related Covered Technology Categories: Provided,
That—
(1) such amounts are available to subsidize gross obliga-
tions for the principal amount of direct loans, and total loan
principal, any part of which is to be guaranteed, not to exceed
$100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title
10, United States Code.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 119
SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR SCALING LOW-COST WEAPONS INTO PRODUCTION.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029—
(1) $25,000,000 for the Office of Strategic Capital Global
Technology Scout program;
(2) $1,400,000,000 for the expansion of the small unmanned
aerial system industrial base;
(3) $400,000,000 for the development and deployment of
the Joint Fires Network and associated joint battle manage-
ment capabilities;
(4) $400,000,000 for the expansion of advanced command-
and-control tools to combatant commands and military depart-
ments;
(5) $100,000,000 for the development of shared secure facili-
ties for the defense industrial base;
(6) $50,000,000 for the creation of additional Defense
Innovation Unit OnRamp Hubs;
(7) $600,000,000 for the acceleration of Strategic Capabili-
ties Office programs;
(8) $650,000,000 for the expansion of Mission Capabilities
office joint prototyping and experimentation activities for mili-
tary innovation;
(9) $500,000,000 for the accelerated development and
integration of advanced 5G/6G technologies for military use;
(10) $25,000,000 for testing of simultaneous transmit and
receive technology for military spectrum agility;
(11) $50,000,000 for the development, procurement, and
integration of high-altitude stratospheric balloons for military
use;
(12) $120,000,000 for the development, procurement, and
integration of long-endurance unmanned aerial systems for
surveillance;
(13) $40,000,000 for the development, procurement, and
integration of alternative positioning and navigation technology
to enable military operations in contested electromagnetic
environments;
(14) $750,000,000 for the acceleration of innovative military
logistics and energy capability development and deployment;
(15) $125,000,000 for the acceleration of development of
small, portable modular nuclear reactors for military use;
(16) $1,000,000,000 for the expansion of programs to accel-
erate the procurement and fielding of innovative technologies;
(17) $90,000,000 for the development of reusable hypersonic
technology for military strikes;
(18) $2,000,000,000 for the expansion of Defense Innovation
Unit scaling of commercial technology for military use;
(19) $500,000,000 to prevent delays in delivery of attritable
autonomous military capabilities;
(20) $1,500,000,000 for the development, procurement, and
integration of low-cost cruise missiles;
(21) $124,000,000 for improvements to Test Resource
Management Center artificial intelligence capabilities;
139 STAT. 120 PUBLIC LAW 119–21—JULY 4, 2025
(22) $145,000,000 for the development of artificial intel-
ligence to enable one-way attack unmanned aerial systems
and naval systems;
(23) $250,000,000 for the development of the Test Resource
Management Center digital test environment;
(24) $250,000,000 for the advancement of the artificial
intelligence ecosystem;
(25) $250,000,000 for the expansion of Cyber Command
artificial intelligence lines of effort;
(26) $250,000,000 for the acceleration of the Quantum
Benchmarking Initiative;
(27) $1,000,000,000 for the expansion and acceleration of
qualification activities and technical data management to
enhance competition in defense industrial base;
(28) $400,000,000 for the expansion of the defense manufac-
turing technology program;
(29) $1,685,000,000 for military cryptographic moderniza-
tion activities;
(30) $90,000,000 for APEX Accelerators, the Mentor-Pro-
tege Program, and cybersecurity support to small non-tradi-
tional contractors;
(31) $250,000,000 for the development, procurement, and
integration of Air Force low-cost counter-air capabilities;
(32) $10,000,000 for additional Air Force wargaming activi-
ties; and
(33) $20,000,000 for the Office of Strategic Capital
workforce.
(b) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary of Defense, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, $1,000,000,000 to the ‘‘Depart-
ment of Defense Credit Program Account’’ to carry out the capital
assistance program, including loans, loan guarantees, and technical
assistance, established under section 149(e) of title 10, United
States Code: Provided, That—
(1) such amounts are available to subsidize gross obliga-
tions for the principal amount of direct loans, and total loan
principal, any part of which is to be guaranteed, not to exceed
$100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title
10, United States Code.
SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR IMPROVING THE EFFICIENCY AND CYBERSECURITY
OF THE DEPARTMENT OF DEFENSE.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $150,000,000 for business systems replacement to accel-
erate the audits of the financial statements of the Department
of Defense pursuant to chapter 9A and section 2222 of title
10, United States Code;
(2) $200,000,000 for the deployment of automation and
artificial intelligence to accelerate the audits of the financial
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 121
statements of the Department of Defense pursuant to chapter
9A and section 2222 of title 10, United States Code;
(3) $10,000,000 for the improvement of the budgetary and
programmatic infrastructure of the Office of the Secretary of
Defense; and
(4) $20,000,000 for defense cybersecurity programs of the
Defense Advanced Research Projects Agency.
SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR AIR SUPERIORITY.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $3,150,000,000 to increase F–15EX aircraft production;
(2) $361,220,000 to prevent the retirement of F–22 aircraft;
(3) $127,460,000 to prevent the retirement of F–15E air-
craft;
(4) $187,000,000 to accelerate installation of F–16 electronic
warfare capability;
(5) $116,000,000 for C–17A Mobility Aircraft Connectivity;
(6) $84,000,000 for KC–135 Mobility Aircraft Connectivity;
(7) $440,000,000 to increase C–130J production;
(8) $474,000,000 to increase EA–37B production;
(9) $678,000,000 to accelerate the Collaborative Combat
Aircraft program;
(10) $400,000,000 to accelerate production of the F–47 air-
craft;
(11) $750,000,000 accelerate the FA/XX aircraft;
(12) $100,000,000 for production of Advanced Aerial Sen-
sors;
(13) $160,000,000 to accelerate V–22 nacelle and reliability
and safety improvements;
(14) $100,000,000 to accelerate production of MQ–25 air-
craft;
(15) $270,000,000 for development, procurement, and
integration of Marine Corps unmanned combat aircraft;
(16) $96,000,000 for the procurement and integration of
infrared search and track pods;
(17) $50,000,000 for the procurement and integration of
additional F–15EX conformal fuel tanks;
(18) $600,000,000 for the development, procurement, and
integration of Air Force long-range strike aircraft; and
(19) $500,000,000 for the development, procurement, and
integration of Navy long-range strike aircraft.
SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES.
(a) DOD APPROPRIATIONS.—In addition to amounts otherwise
available, there are appropriated to the Secretary of Defense for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2029—
(1) $2,500,000,000 for risk reduction activities for the Sen-
tinel intercontinental ballistic missile program;
(2) $4,500,000,000 only for expansion of production capacity
of B–21 long-range bomber aircraft and the purchase of aircraft
only available through the expansion of production capacity;
(3) $500,000,000 for improvements to the Minuteman III
intercontinental ballistic missile system;
139 STAT. 122 PUBLIC LAW 119–21—JULY 4, 2025
(4) $100,000,000 for capability enhancements to interconti-
nental ballistic missile reentry vehicles;
(5) $148,000,000 for the expansion of D5 missile motor
production;
(6) $400,000,000 to accelerate the development of Trident
D5LE2 submarine-launched ballistic missiles;
(7) $2,000,000,000 to accelerate the development, procure-
ment, and integration of the nuclear-armed sea-launched cruise
missile;
(8) $62,000,000 to convert Ohio-class submarine tubes to
accept additional missiles, not to be obligated before March
1, 2026;
(9) $168,000,000 to accelerate the production of the Surviv-
able Airborne Operations Center program;
(10) $65,000,000 to accelerate the modernization of nuclear
command, control, and communications;
(11) $210,300,000 for the increased production of MH–
139 helicopters; and
(12) $150,000,000 to accelerate the development, procure-
ment, and integration of military nuclear weapons delivery
programs.
(b) NNSA APPROPRIATIONS.—In addition to amounts otherwise
available, there are appropriated to the Administrator of the
National Nuclear Security Administration for fiscal year 2025, out
of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $200,000,000 to perform National Nuclear Security
Administration Phase 1 studies pursuant to section 3211 of
the National Nuclear Security Administration Act (50 U.S.C.
2401);
(2) $540,000,000 to address deferred maintenance and
repair needs of the National Nuclear Security Administration
pursuant to section 3211 of the National Nuclear Security
Administration Act (50 U.S.C. 2401);
(3) $1,000,000,000 to accelerate the construction of National
Nuclear Security Administration facilities pursuant to section
3211 of the National Nuclear Security Administration Act (50
U.S.C. 2401);
(4) $400,000,000 to accelerate the development, procure-
ment, and integration of the warhead for the nuclear-armed
sea-launched cruise missile pursuant to section 3211 of the
National Nuclear Security Administration Act (50 U.S.C. 2401);
(5) $750,000,000 to accelerate primary capability mod-
ernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401);
(6) $750,000,000 to accelerate secondary capability mod-
ernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401);
(7) $120,000,000 to accelerate domestic uranium enrich-
ment centrifuge deployment for defense purposes pursuant to
section 3211 of the National Nuclear Security Administration
Act (50 U.S.C. 2401);
(8) $10,000,000 for National Nuclear Security Administra-
tion evaluation of spent fuel reprocessing technology; and
(9) $115,000,000 for accelerating nuclear national security
missions through artificial intelligence.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 123
SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
TO IMPROVE CAPABILITIES OF UNITED STATES INDO-
PACIFIC COMMAND.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $365,000,000 for Army exercises and operations in the
Western Pacific area of operations;
(2) $53,000,000 for Special Operations Command exercises
and operations in the Western Pacific area of operations;
(3) $47,000,000 for Marine Corps exercises and operations
in Western Pacific area of operations;
(4) $90,000,000 for Air Force exercises and operations in
Western Pacific area of operations;
(5) $532,600,000 for the Pacific Air Force biennial large-
scale exercise;
(6) $19,000,000 for the development of naval small craft
capabilities;
(7) $35,000,000 for military additive manufacturing
capabilities in the United States Indo-Pacific Command area
of operations west of the international dateline;
(8) $450,000,000 for the development of airfields within
the area of operations of United States Indo-Pacific Command;
(9) $1,100,000,000 for development of infrastructure within
the area of operations of United States Indo-Pacific Command;
(10) $124,000,000 for mission networks for United States
Indo-Pacific Command;
(11) $100,000,000 for Air Force regionally based cluster
pre-position base kits;
(12) $115,000,000 for exploration and development of
existing Arctic infrastructure;
(13) $90,000,000 for the accelerated development of non-
kinetic capabilities;
(14) $20,000,000 for United States Indo-Pacific Command
military exercises;
(15) $143,000,000 for anti-submarine sonar arrays;
(16) $30,000,000 for surveillance and reconnaissance
capabilities for United States Africa Command;
(17) $30,000,000 for surveillance and reconnaissance
capabilities for United States Indo-Pacific Command;
(18) $500,000,000 for the development, coordination, and
deployment of economic competition effects within the Depart-
ment of Defense;
(19) $10,000,000 for the expansion of Department of
Defense workforce for economic competition;
(20) $1,000,000,000 for offensive cyber operations;
(21) $500,000,000 for personnel and operations costs associ-
ated with forces assigned to United States Indo-Pacific Com-
mand;
(22) $300,000,000 for the procurement of mesh network
communications capabilities for Special Operations Command
Pacific;
(23) $850,000,000 for the replenishment of military articles;
(24) $200,000,000 for acceleration of Guam Defense System
program;
(25) $68,000,000 for Space Force facilities improvements;
139 STAT. 124 PUBLIC LAW 119–21—JULY 4, 2025
(26) $150,000,000 for ground moving target indicator mili-
tary satellites;
(27) $528,000,000 for DARC and SILENTBARKER military
space situational awareness programs;
(28) $80,000,000 for Navy Operational Support Division;
(29) $1,000,000,000 for the X–37B military spacecraft pro-
gram;
(30) $3,650,000,000 for the development, procurement, and
integration of United States military satellites and the protec-
tion of United States military satellites.
(31) $125,000,000 for the development, procurement, and
integration of military space communications.
(32) $350,000,000 for the development, procurement, and
integration of military space command and control systems.
SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES
FOR IMPROVING THE READINESS OF THE DEPARTMENT
OF DEFENSE.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029—
(1) $1,400,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool;
(2) $700,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool for amphibious ships;
(3) $2,118,000,000 for spares and repairs to keep Air Force
aircraft mission capable;
(4) $1,500,000,000 for Army depot modernization and
capacity enhancement;
(5) $2,000,000,000 for Navy depot and shipyard moderniza-
tion and capacity enhancement;
(6) $250,000,000 for Air Force depot modernization and
capacity enhancement;
(7) $1,640,000,000 for Special Operations Command equip-
ment, readiness, and operations;
(8) $500,000,000 for National Guard unit readiness;
(9) $400,000,000 for Marine Corps readiness and capabili-
ties;
(10) $20,000,000 for upgrades to Marine Corps utility heli-
copters;
(11) $310,000,000 for next-generation vertical lift, assault,
and intra-theater aeromedical evacuation aircraft;
(12) $75,000,000 for the procurement of anti-lock braking
systems for Army wheeled transport vehicles;
(13) $230,000,000 for the procurement of Army wheeled
combat vehicles;
(14) $63,000,000 for the development of advanced rotary-
wing engines;
(15) $241,000,000 for the development, procurement, and
integration of Marine Corps amphibious vehicles;
(16) $250,000,000 for the procurement of Army tracked
combat transport vehicles;
(17) $98,000,000 for additional Army light rotary-wing
capabilities;
(18) $1,500,000,000 for increased depot maintenance and
shipyard maintenance activities;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 125
(19) $2,500,000,000 for Air Force facilities sustainment,
restoration, and modernization;
(20) $92,500,000 for the completion of Robotic Combat
Vehicle prototyping;
(21) $125,000,000 for Army operations;
(22) $10,000,000 for the Air Force Concepts, Development,
and Management Office; and
(23) $320,000,000 for Joint Special Operations Command.
SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT
AND COUNTER-DRUG MISSIONS.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Defense for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, $1,000,000,000 for the deploy-
ment of military personnel in support of border operations, oper-
ations and maintenance activities in support of border operations,
counter-narcotics and counter-transnational criminal organization
mission support, the operation of national defense areas and
construction in national defense areas, and the temporary detention
of migrants on Department of Defense installations, in accordance
with chapter 15 of title 10, United States Code.
SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT.
In addition to amounts otherwise available, there is appro-
priated to the Inspector General of the Department of Defense
for fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available through September
30, 2029, to monitor Department of Defense activities for which
funding is appropriated in this title, including—
(1) programs with mutual technological dependencies;
(2) programs with related data management and data
ownership considerations; and
(3) programs particularly vulnerable to supply chain disrup-
tions and long lead time components.
SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby
authorized to be appropriated for military construction, land acquisi-
tion, and military family housing functions of each military depart-
ment (as defined in section 101(a) of title 10, United States Code)
as specified in this title.
(b) SPENDING PLAN.—Not later than 30 days after the date Deadline.
of the enactment of this title, the Secretary of each military depart-
ment shall submit to the Committees on Armed Services of the
Senate and House of Representatives a detailed spending plan
by project for all funds made available by this title to be expended
on military construction projects.
139 STAT. 126 PUBLIC LAW 119–21—JULY 4, 2025
Time periods. TITLE III—COMMITTEE ON BANKING,
HOUSING, AND URBAN AFFAIRS
SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking
‘‘12’’ and inserting ‘‘6.5’’.
SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RET-
ROFIT PROGRAM FOR MULTIFAMILY HOUSING.
The unobligated balances of amounts made available under
section 30002(a) of the Act entitled ‘‘An Act to provide for reconcili-
ation pursuant to title II of S. Con. Res. 14’’, approved August
16, 2022 (Public Law 117–169; 136 Stat. 2027) are rescinded.
SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.
(a) IN GENERAL.—Section 4 of the Securities Exchange Act
of 1934 (15 U.S.C. 78d) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections
(i) and (j), respectively.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section
21F(g)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78u–
6(g)(2)) is amended to read as follows:
‘‘(a) USE OF FUND.—The Fund shall be available to the Commis-
sion, without further appropriation or fiscal year limitation, for
paying awards to whistleblowers as provided in subsection (b).’’.
Effective date. (c) TRANSITION PROVISION.—During the period beginning on
15 USC 78d note. the date of enactment of this Act and ending on October 1, 2025,
the Securities and Exchange Commission may expend amounts
in the Securities and Exchange Commission Reserve Fund that
were obligated before the date of enactment of this Act for any
program, project, or activity that is ongoing (as of the day before
the date of enactment of this Act) in accordance with subsection
(i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C.
78d), as in effect on the day before the date of enactment of
this Act.
Effective date. (d) TRANSFER OF REMAINING AMOUNTS.—Effective on October
1, 2025, the obligated and unobligated balances of amounts in
the Securities and Exchange Commission Reserve Fund shall be
transferred to the general fund of the Treasury.
(e) CLOSING OF ACCOUNT.—For the purposes of section 1555
of title 31, United States Code, the Securities and Exchange
Commission Reserve Fund shall be considered closed, and thereafter
shall not be available for obligation or expenditure for any purpose,
upon execution of the transfer required under subsection (d).
Expiration date. SEC. 30004. APPROPRIATIONS FOR DEFENSE PRODUCTION ACT.
In addition to amounts otherwise available, there is appro-
priated for fiscal year 2025, out of amounts not otherwise appro-
priated, $1,000,000,000, to remain available until September 30,
2027, to carry out the Defense Production Act (50 U.S.C. 4501
et seq.).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 127
TITLE IV—COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
SEC. 40001. COAST GUARD MISSION READINESS.
(a) IN GENERAL.—Chapter 11 of title 14, United States Code, 14 USC
is amended by adding at the end the following: prec. 1181.
‘‘Subchapter V—Coast Guard Mission Readiness
‘‘§ 1181. Special appropriations 14 USC 1181.
‘‘In addition to amounts otherwise available, there is appro- Time period.
priated to the Coast Guard for fiscal year 2025, out of any money Expiration date.
in the Treasury not otherwise appropriated, $24,593,500,000, to
remain available until September 30, 2029, notwithstanding para-
graphs (1) and (2) of section 1105(a) and sections 1131, 1132,
1133, and 1156, to use expedited processes to procure or acquire
new operational assets and systems, to maintain existing assets
and systems, to design, construct, plan, engineer, and improve
necessary shore infrastructure, and to enhance operational resil-
ience for monitoring, search and rescue, interdiction, hardening
of maritime approaches, and navigational safety, of which—
‘‘(1) $1,142,500,000 is provided for procurement and
acquisition of fixed-wing aircraft, equipment related to such
aircraft and training simulators and program management for
such aircraft, to provide for security of the maritime border;
‘‘(2) $2,283,000,000 is provided for procurement and
acquisition of rotary-wing aircraft, equipment related to such
aircraft and training simulators and program management for
such aircraft, to provide for security of the maritime border;
‘‘(3) $266,000,000 is provided for procurement and acquisi-
tion of long-range unmanned aircraft and base stations, equip-
ment related to such aircraft and base stations, and program
management for such aircraft and base stations, to provide
for security of the maritime border;
‘‘(4) $4,300,000,000 is provided for procurement of Offshore
Patrol Cutters, equipment related to such cutters, and program
management for such cutters, to provide operational presence
and security of the maritime border and for interdiction of
persons and controlled substances;
‘‘(5) $1,000,000,000 is provided for procurement of Fast
Response Cutters, equipment related to such cutters, and pro-
gram management for such cutters, to provide operational pres-
ence and security of the maritime border and for interdiction
of persons and controlled substances;
‘‘(6) $4,300,000,000 is provided for procurement of Polar
Security Cutters, equipment related to such cutters, and pro-
gram management for such cutters, to ensure timely presence
of the Coast Guard in the Arctic and Antarctic regions;
‘‘(7) $3,500,000,000 is provided for procurement of Arctic
Security Cutters, equipment related to such cutters, and pro-
gram management for such cutters, to ensure timely presence
of the Coast Guard in the Arctic and Antarctic regions;
‘‘(8) $816,000,000 is provided for procurement of light and
medium icebreaking cutters, and equipment relating to such
cutters, from shipyards that have demonstrated success in the
139 STAT. 128 PUBLIC LAW 119–21—JULY 4, 2025
cost-effective application of design standards and in delivering,
on schedule and within budget, vessels of a size and tonnage
that are not less than the size and tonnage of the cutters
described in this paragraph, and for program management
for such cutters, to expand domestic icebreaking capacity;
‘‘(9) $162,000,000 is provided for procurement of Waterways
Commerce Cutters, equipment related to such cutters, and
program management for such cutters, to support aids to
navigation, waterways and coastal security, and search and
rescue in inland waterways;
‘‘(10) $4,379,000,000 is provided for design, planning,
engineering, recapitalization, construction, rebuilding, and
improvement of, and program management for, shore facilities,
of which—
‘‘(A) $425,000,000 is provided for design, planning,
engineering, construction of, and program management
for—
‘‘(i) the enlisted boot camp barracks and multi-
use training center; and
‘‘(ii) other related facilities at the enlisted boot
camp;
‘‘(B) $500,000,000 is provided for—
‘‘(i) construction, improvement, and dredging at
the Coast Guard Yard; and
‘‘(ii) acquisition of a floating drydock for the Coast
Guard Yard;
‘‘(C) not more than $2,729,500,000 is provided for
homeports and hangars for cutters and aircraft for which
funds are appropriated under paragraph (1) through (9);
and
‘‘(D) $300,000,000 is provided for homeporting of the
existing polar icebreaker commissioned into service in 2025;
‘‘(11) $2,200,000,000 is provided for aviation, cutter, and
shore facility depot maintenance and maintenance of command,
control, communication, computer, and cyber assets;
‘‘(12) $170,000,000 is provided for improving maritime
domain awareness on the maritime border, at United States
ports, at land-based facilities and in the cyber domain; and
‘‘(13) $75,000,000 is provided to contract the services of,
acquire, or procure autonomous maritime systems.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis
14 USC for chapter 11 of title 14, United States Code, is amended by
prec. 1101. adding at the end the following:
‘‘SUBCHAPTER V—COAST GUARD MISSION READINESS
‘‘1181. Special appropriations.’’.
Deadlines. SEC. 40002. SPECTRUM AUCTIONS.
47 USC 309 note.
(a) DEFINITIONS.—In this section:
(1) ASSISTANT SECRETARY.—The term ‘‘Assistant Secretary’’
means the Assistant Secretary of Commerce for Communica-
tions and Information.
(2) COMMISSION.—The term ‘‘Commission’’ means the Fed-
eral Communications Commission.
(3) COVERED BAND.—The term ‘‘covered band’’—
(A) except as provided in subparagraph (B), means
the band of frequencies between 1.3 gigahertz and 10.5
gigahertz; and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 129
(B) does not include—
(i) the band of frequencies between 3.1 gigahertz
and 3.45 gigahertz for purposes of auction, reallocation,
modification, or withdrawal; or
(ii) the band of frequencies between 7.4 gigahertz
and 8.4 gigahertz for purposes of auction, reallocation,
modification, or withdrawal.
(4) FULL-POWER COMMERCIAL LICENSED USE CASES.—The
term ‘‘full-power commercial licensed use cases’’ means flexible
use wireless broadband services with base station power levels
sufficient for high-power, high-density, and wide-area commer-
cial mobile services, consistent with the service rules under
part 27 of title 47, Code of Federal Regulations, or any successor
regulations, for wireless broadband deployments throughout
the covered band.
(b) GENERAL AUCTION AUTHORITY.—
(1) AMENDMENT.—Section 309(j)(11) of the Communications Expiration date.
Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ‘‘grant
a license or permit under this subsection shall expire March
9, 2023’’ and all that follows and inserting the following:
″complete a system of competitive bidding under this subsection
shall expire September 30, 2034, except that, with respect
to the electromagnetic spectrum— ‘‘
‘‘(A) between the frequencies of 3.1 gigahertz and 3.45
gigahertz, such authority shall not apply; and
‘‘(B) between the frequencies of 7.4 gigahertz and 8.4
gigahertz, such authority shall not apply.’’.
(2) SPECTRUM AUCTIONS.—The Commission shall grant
licenses through systems of competitive bidding, before the
expiration of the general auction authority of the Commission
under section 309(j)(11) of the Communications Act of 1934
(47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this
subsection, for not less than 300 megahertz, including by com-
pleting a system of competitive bidding not later than 2 years
after the date of enactment of this Act for not less than 100
megahertz in the band between 3.98 gigahertz and 4.2
gigahertz.
(c) IDENTIFICATION FOR REALLOCATION.—
(1) IN GENERAL.—The Assistant Secretary, in consultation
with the Commission, shall identify 500 megahertz of fre-
quencies in the covered band for reallocation to non-Federal
use, shared Federal and non-Federal use, or a combination
thereof, for full-power commercial licensed use cases, that—
(A) as of the date of enactment of this Act, are allocated
for Federal use; and
(B) shall be in addition to the 300 megahertz of fre-
quencies for which the Commission grants licenses under
subsection (b)(2).
(2) SCHEDULE.—The Assistant Secretary shall identify the
frequencies under paragraph (1) according to the following
schedule:
(A) Not later than 2 years after the date of enactment
of this Act, the Assistant Secretary shall identify not less
than 200 megahertz of frequencies within the covered band.
(B) Not later than 4 years after the date of enactment
of this Act, the Assistant Secretary shall identify any
139 STAT. 130 PUBLIC LAW 119–21—JULY 4, 2025
remaining bandwidth required to be identified under para-
graph (1).
(3) REQUIRED ANALYSIS.—
Determination. (A) IN GENERAL.—In determining under paragraph (1)
which specific frequencies within the covered band to reallo-
cate, the Assistant Secretary shall determine the feasibility
of the reallocation of frequencies.
Assessment. (B) REQUIREMENTS.—In conducting the analysis under
subparagraph (A), the Assistant Secretary shall assess net
revenue potential, relocation or sharing costs, as applicable,
and the feasibility of reallocating specific frequencies, with
the goal of identifying the best approach to maximize net
proceeds of systems of competitive bidding for the Treasury,
consistent with section 309(j) of the Communications Act
of 1934 (47 U.S.C. 309(j)).
Notifications. (d) AUCTIONS.—The Commission shall grant licenses for the
frequencies identified for reallocation under subsection (c) through
systems of competitive bidding in accordance with the following
schedule:
(1) Not later than 4 years after the date of enactment
of this Act, the Commission shall, after notifying the Assistant
Secretary, complete 1 or more systems of competitive bidding
for not less than 200 megahertz of the frequencies.
Compliance. (2) Not later than 8 years after the date of enactment
of this Act, the Commission shall, after notifying the Assistant
Secretary, complete 1 or more systems of competitive bidding
for any frequencies identified under subsection (c) that remain
to be auctioned after compliance with paragraph (1) of this
subsection.
President. (e) LIMITATION.—The President shall modify or withdraw any
Determination. frequency proposed for reallocation under this section not later
than 60 days before the commencement of a system of competitive
bidding scheduled by the Commission with respect to that fre-
quency, if the President determines that such modification or with-
drawal is necessary to protect the national security of the United
States.
Time period. (f) APPROPRIATION.—In addition to amounts otherwise avail-
Expiration date. able, there is appropriated to the Department of Commerce for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $50,000,000, to remain available through September
30, 2034, to provide additional support to the Assistant Secretary
to—
Analysis. (1) conduct a timely spectrum analysis of the bands of
frequencies—
(A) between 2.7 gigahertz and 2.9 gigahertz;
(B) between 4.4 gigahertz and 4.9 gigahertz; and
(C) between 7.25 gigahertz and 7.4 gigahertz; and
Publication. (2) publish a biennial report, with the last report to be
Reports. published not later than June 30, 2034, on the value of all
Assessments. spectrum used by Federal entities (as defined in section 113(l)
of the National Telecommunications and Information Adminis-
tration Organization Act (47 U.S.C. 923(l))), that assesses the
value of bands of frequencies in increments of not more than
100 megahertz.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 131
SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS. Time periods.
(a) IN GENERAL.—For the purpose of the acquisition, construc- Appropriation
tion, sustainment, and improvement of facilities and equipment authorization.
necessary to improve or maintain aviation safety, in addition to Expiration date.
amounts otherwise made available, there is appropriated to the
Administrator of the Federal Aviation Administration for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029—
(1) $4,750,000,000 for telecommunications infrastructure
modernization and systems upgrades;
(2) $3,000,000,000 for radar systems replacement;
(3) $500,000,000 for runway safety technologies, runway
lighting systems, airport surface surveillance technologies, and
to carry out section 347 of the FAA Reauthorization Act of
2024;
(4) $300,000,000 for Enterprise Information Display Sys-
tems;
(5) $80,000,000 to acquire and install not less than 50
Automated Weather Observing Systems, to acquire and install
not less than 60 Visual Weather Observing Systems, to acquire
and install not less than 64 weather camera sites, and to
acquire and install weather stations;
(6) $40,000,000 to carry out section 44745 of title 49, United
States Code, (except for activities described in paragraph (5));
(7) $1,900,000,000 for necessary actions to construct a new
air route traffic control center (in this subsection referred to
as ‘‘ARTCC’’): Provided, That not more than 2 percent of such
amount is used for planning or administrative purposes: Pro-
vided further, That at least 3 existing ARTCCs are divested
and integrated into the newly constructed ARTCC;
(8) $100,000,000 to conduct an ARTCC Realignment and
Consolidation Effort under which at least 10 existing ARTCCs
are closed or consolidated to facilitate recapitalization of
ARTCC facilities owned and operated by the Federal Aviation
Administration;
(9) $1,000,000,000 to support recapitalization and consoli-
dation of terminal radar approach control facilities (in this
subsection referred to as ‘‘TRACONs’’), the analysis and identi-
fication of TRACONs for divestment, consolidation, or integra-
tion, planning, site selection, facility acquisition, and transition
activities and other appropriate activities for carrying out such
divestment, consolidation, or integration, and the establishment
of brand new TRACONs;
(10) $350,000,000 for unstaffed infrastructure sustainment
and replacement;
(11) $50,000,000 to carry out section 961 of the FAA
Reauthorization Act of 2024;
(12) $300,000,000 to carry out section 619 of the FAA
Reauthorization Act of 2024;
(13) $50,000,000 to carry out section 621 of the FAA
Reauthorization Act of 2024 and to deploy remote tower tech-
nology at untowered airports; and
(14) $100,000,000 for air traffic controller advanced
training technologies.
(b) QUARTERLY REPORTING.—Not later than 180 days after the
date of enactment of this Act, and every 90 days thereafter, the
Administrator of the Federal Aviation Administration shall submit
139 STAT. 132 PUBLIC LAW 119–21—JULY 4, 2025
to Congress a report that describes any expenditures under this
section.
SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMIT-
TING USER FEES.
(a) IN GENERAL.—Chapter 509 of title 51, United States Code,
is amended by adding at the end the following new section:
51 USC 50924. ‘‘§ 50924. Space launch and reentry licensing and permitting
user fees
Time periods. ‘‘(a) FEES.—
‘‘(1) IN GENERAL.—The Secretary of Transportation shall
impose a fee, which shall be deposited in the account estab-
lished under subsection (b), on each launch or reentry carried
out under a license or permit issued under section 50904 during
2026 or a subsequent year, in an amount equal to the lesser
of—
‘‘(A) the amount specified in paragraph (2) for the
year involved per pound of the weight of the payload;
or
‘‘(B) the amount specified in paragraph (3) for the
year involved.
‘‘(2) PARAGRAPH (2) SPECIFIED AMOUNT.—The amount speci-
fied in this paragraph is—
‘‘(A) for 2026, $0.25;
‘‘(B) for 2027, $0.35;
‘‘(C) for 2028, $0.50;
‘‘(D) for 2029, $0.60;
‘‘(E) for 2030, $0.75;
‘‘(F) for 2031, $1;
‘‘(G) for 2032, $1.25;
‘‘(H) for 2033, $1.50; and
‘‘(I) for 2034 and each subsequent year, the amount
specified in this paragraph for the previous year increased
by the percentage increase in the consumer price index
for all urban consumers (all items; United States city aver-
age) over the previous year.
‘‘(3) PARAGRAPH (3) SPECIFIED AMOUNT.—The amount speci-
fied in this paragraph is—
‘‘(A) for 2026, $30,000;
‘‘(B) for 2027, $40,000;
‘‘(C) for 2028, $50,000;
‘‘(D) for 2029, $75,000;
‘‘(E) for 2030, $100,000;
‘‘(F) for 2031, $125,000;
‘‘(G) for 2032, $170,000;
‘‘(H) for 2033, $200,000; and
‘‘(I) for 2034 and each subsequent year, the amount
specified in this paragraph for the previous year increased
by the percentage increase in the consumer price index
for all urban consumers (all items; United States city aver-
age) over the previous year.
‘‘(b) OFFICE OF COMMERCIAL SPACE TRANSPORTATION LAUNCH
AND REENTRY LICENSING AND PERMITTING FUND.—There is estab-
lished in the Treasury of the United States a separate account,
which shall be known as the ‘Office of Commercial Space Transpor-
tation Launch and Reentry Licensing and Permitting Fund’, for
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 133
the purposes of expenses of the Office of Commercial Space
Transportation of the Federal Aviation Administration and to carry
out section 630(b) of the FAA Reauthorization Act of 2024. 70
percent of the amounts deposited into the fund shall be available
for such purposes and shall be available without further appropria-
tion and without fiscal year limitation.’’.
(b) CLERICAL AMENDMENT.—The table of sections for chapter
509 of title 51, United States Code, is amended by inserting after 51 USC
the item relating to section 50923 the following: prec. 50901.
‘‘50924. Space launch and reentry licensing and permitting user fees.’’.
SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS
PROGRAM.
(a) IN GENERAL.—Chapter 203 of title 51, United States Code,
is amended by adding at the end the following:
‘‘§ 20306. Special appropriations for Mars missions, Artemis Deadlines.
missions, and Moon to Mars program 51 USC 20306.
‘‘(a) IN GENERAL.—In addition to amounts otherwise available, Time periods.
there is appropriated to the Administration for fiscal year 2025, Expiration date.
out of any money in the Treasury not otherwise appropriated,
$9,995,000,000, to remain available until September 30, 2032, to
use as follows:
‘‘(1) $700,000,000, to be obligated not later than fiscal year
2026, for the procurement, using a competitively bid, firm fixed-
price contract with a United States commercial provider (as
defined in section 50101(7)), of a high-performance Mars tele-
communications orbiter—
‘‘(A) that—
‘‘(i) is capable of providing robust, continuous
communications for—
‘‘(I) a Mars sample return mission, as
described in section 432(3)(C) of the National Aero-
nautics and Space Administration Transition
Authorization Act of 2017 (51 U.S.C. 20302 note;
Public Law 115–10); and
‘‘(II) future Mars surface, orbital, and human
exploration missions;
‘‘(ii) supports autonomous operations, onboard
processing, and extended mission duration capabilities;
and
‘‘(iii) is selected from among the commercial pro-
posals that—
‘‘(I) received funding from the Administration
in fiscal year 2024 or 2025 for commercial design
studies for Mars Sample Return; and
‘‘(II) proposed a separate, independently
launched Mars telecommunication orbiter sup-
porting an end-to-end Mars sample return mission;
and
‘‘(B) which shall be delivered to the Administration
not later than December 31, 2028.
‘‘(2) $2,600,000,000 to meet the requirements of section
20302(a) using the program of record known, as of the date
of the enactment of this section, as ‘Gateway’, and as described
in section 10811(b)(2)(B)(iv) of the National Aeronautics and
Space Administration Authorization Act of 2022 (51 U.S.C.
139 STAT. 134 PUBLIC LAW 119–21—JULY 4, 2025
20302 note; Public Law 117–167), of which not less than
$750,000,000 shall be obligated for each of fiscal years 2026,
2027, and 2028.
‘‘(3) $4,100,000,000 for expenses related to meeting the
requirements of section 10812 of the National Aeronautics and
Space Administration Authorization Act of 2022 (51 U.S.C.
20301; Public Law 117–167) for the procurement, transpor-
tation, integration, operation, and other necessary expenses
of the Space Launch System for Artemis Missions IV and
V, of which not less than $1,025,000,000 shall be obligated
for each of fiscal years 2026, 2027, 2028, and 2029.
‘‘(4) $20,000,000 for expenses related to the continued
procurement of the multi-purpose crew vehicle described in
section 303 of the National Aeronautics and Space Administra-
tion Authorization Act of 2010 (42 U.S.C. 18323), known as
the ‘Orion’, for use with the Space Launch System on the
Artemis IV Mission and reuse in subsequent Artemis Missions,
of which not less than $20,000,000 shall be obligated not later
than fiscal year 2026.
‘‘(5) $1,250,000,000 for expenses related to the operation
of the International Space Station and for the purpose of
meeting the requirement under section 503(a) of the National
Aeronautics and Space Administration Authorization Act of
2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000
shall be obligated for such expenses for each of fiscal years
2025, 2026, 2027, 2028, and 2029.
State listing. ‘‘(6) $1,000,000,000 for infrastructure improvements at the
manned spaceflight centers of the Administration, of which
not less than—
‘‘(A) $120,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization, recapital-
ization, or other infrastructure projects and improvements
at the center described in Executive Order 12641 (53 Fed.
Reg. 18816; relating to designating certain facilities of the
National Aeronautics and Space Administration in the
State of Mississippi as the John C. Stennis Space Center);
‘‘(B) $250,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization, recapital-
ization, or other infrastructure projects and improvements
at the center described in Executive Order 11129 (28 Fed.
Reg. 12787; relating to designating certain facilities of the
National Aeronautics and Space Administration and of the
Department of Defense, in the State of Florida, as the
John F. Kennedy Space Center);
‘‘(C) $300,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization, recapital-
ization, or other infrastructure projects and improvements
at the center described in the Joint Resolution entitled
‘Joint Resolution to designate the Manned Spacecraft
Center in Houston, Texas, as the ‘‘Lyndon B. Johnson
Space Center’’ in honor of the late President’, approved
February 17, 1973 (Public Law 93–8; 87 Stat. 7);
‘‘(D) $100,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization, recapital-
ization, or other infrastructure projects and improvements
at the center described in Executive Order 10870 (25 Fed.
Reg. 2197; relating to designating the facilities of the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 135
National Aeronautics and Space Administration at Hunts-
ville, Alabama, as the George C. Marshall Space Flight
Center);
‘‘(E) $30,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the
Michoud Assembly Facility in New Orleans, Louisiana; and
‘‘(F) $85,000,000 shall be obligated to carry out sub- Transfer.
section (b), of which not less than $5,000,000 shall be
obligated for the transportation of the space vehicle
described in that subsection, with the remainder trans-
ferred not later than the date that is 18 months after
the date of the enactment of this section to the entity
designated under that subsection, for the purpose of
construction of a facility to house the space vehicle referred
to in that subsection.
‘‘(7) $325,000,000 to fulfill contract number
80JSC024CA002 issued by the National Aeronautics and Space
Administration on June 26, 2024.
‘‘(b) SPACE VEHICLE TRANSFER.—
‘‘(1) IN GENERAL.—Not later than 30 days after the date
of the enactment of this section, the Administrator shall identify
a space vehicle described in paragraph (2) to be—
‘‘(A) transferred to a field center of the Administration
that is involved in the administration of the Commercial
Crew Program (as described in section 302 of the National
Aeronautics and Space Administration Transition
Authorization Act of 2017 (51 U.S.C. 50111 note; Public
Law 115–10)); and
‘‘(B) placed on public exhibition at an entity within
the Metropolitan Statistical Area where such center is
located.
‘‘(2) SPACE VEHICLE DESCRIBED.—A space vehicle described
in this paragraph is a vessel that—
‘‘(A) has flown into space;
‘‘(B) has carried astronauts; and
‘‘(C) is selected with the concurrence of an entity des-
ignated by the Administrator.
‘‘(3) TRANSFER.—Not later than 18 months after the date
of the enactment of this section, the space vehicle identified
under paragraph (1) shall be transferred to an entity designated
by the Administrator.
‘‘(c) OBLIGATION OF FUNDS.—Funds appropriated under sub-
section (a) shall be obligated as follows:
‘‘(1) Not less than 50 percent of the total funds in subsection
(a) shall be obligated not later than September 30, 2028.
‘‘(2) 100 percent of funds shall be obligated not later than
September 30, 2029.
‘‘(3) All associated outlays shall occur not later than Sep-
tember 30, 2034.’’.
139 STAT. 136 PUBLIC LAW 119–21—JULY 4, 2025
(b) CLERICAL AMENDMENT.—The table of sections for chapter
51 USC 203 of title 51, United States Code, is amended by adding at
prec. 20301. the end the following:
‘‘20306. Special appropriations for Mars missions, Artemis missions, and Moon to
Mars program.’’.
SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES.
(a) IN GENERAL.—Section 32912 of title 49, United States Code,
is amended—
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ‘‘$5’’ and inserting ‘‘$0.00’’; and
(2) in subsection (c)(1)(B), by striking ‘‘$10’’ and inserting
‘‘$0.00’’.
49 USC 32912 (b) EFFECT; APPLICABILITY.—The amendments made by sub-
note. section (a) shall—
(1) take effect on the date of enactment of this section;
and
(2) apply to all model years of a manufacturer for which
the Secretary of Transportation has not provided a notification
pursuant to section 32903(b)(2)(B) of title 49, United States
Code, specifying the penalty due for the average fuel economy
of that manufacturer being less than the applicable standard
prescribed under section 32902 of that title.
SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON
AIRPORTS.
Section 49104(b) of title 49, United States Code, is amended
to read as follows:
Time periods. ‘‘(b) PAYMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), under the lease,
the Airports Authority must pay to the general fund of the
Treasury annually an amount, computed using the GNP Price
Deflator—
‘‘(A) during the period from 1987 to 2026, equal to
$3,000,000 in 1987 dollars; and
‘‘(B) for 2027 and subsequent years, equal to
$15,000,000 in 2027 dollars.
‘‘(2) RENEGOTIATION.—The Secretary and the Airports
Authority shall renegotiate the level of lease payments at least
once every 10 years to ensure that in no year the amount
specified in paragraph (1)(B) is less than $15,000,000 in 2027
dollars.’’.
SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL
OCEANIC AND ATMOSPHERIC ADMINISTRATION.
Any unobligated balances of amounts appropriated or otherwise
made available by sections 40001, 40002, 40003, and 40004 of
Public Law 117–169 (136 Stat. 2028) are hereby rescinded.
SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PRO-
MOTION FUND.
Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22
U.S.C. 2131(d)(2)(B)) is amended by striking ‘‘$100,000,000’’ and
inserting ‘‘$20,000,000’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 137
SEC. 40010. TREATMENT OF UNOBLIGATED FUNDS FOR ALTERNATIVE Rescission.
FUEL AND LOW-EMISSION AVIATION TECHNOLOGY.
Out of the amounts made available by section 40007(a) of
title IV of Public Law 117–169 (49 U.S.C. 44504 note), any unobli-
gated balances of such amounts are hereby rescinded.
SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC
WIRELESS SUPPLY CHAIN INNOVATION FUND.
Of the unobligated balances of amounts made available under
section 106(a) of the CHIPS Act of 2022 (Public Law 117–167;
136 Stat. 1392), $850,000,000 are permanently rescinded.
TITLE V—COMMITTEE ON ENERGY AND
NATURAL RESOURCES
Subtitle A—Oil and Gas Leasing
SEC. 50101. ONSHORE OIL AND GAS LEASING.
(a) REPEAL OF INFLATION REDUCTION ACT PROVISIONS.— 30 USC 188 and
(1) ONSHORE OIL AND GAS ROYALTY RATES.—Subsection (a) note.
of section 50262 of Public Law 117–169 (136 Stat. 2056) is 30 USC 226.
repealed, and any provision of law amended or repealed by
that subsection is restored or revived as if that subsection
had not been enacted into law.
(2) NONCOMPETITIVE LEASING.—Subsection (e) of section
50262 of Public Law 117–169 (136 Stat. 2057) is repealed, 30 USC 226.
and any provision of law amended or repealed by that sub-
section is restored or revived as if that subsection had not
been enacted into law.
(b) REQUIREMENT TO IMMEDIATELY RESUME ONSHORE OIL AND Compliance.
GAS LEASE SALES.—
(1) IN GENERAL.—The Secretary of the Interior shall imme- Time period.
diately resume quarterly onshore oil and gas lease sales in 30 USC 226 note.
compliance with the Mineral Leasing Act (30 U.S.C. 181 et
seq.).
(2) REQUIREMENT.—The Secretary of the Interior shall
ensure—
(A) that any oil and gas lease sale required under
paragraph (1) is conducted immediately on completion of
all applicable scoping, public comment, and environmental
analysis requirements under the Mineral Leasing Act (30
U.S.C. 181 et seq.) and the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.); and
(B) that the processes described in subparagraph (A)
are conducted in a timely manner to ensure compliance
with subsection (b)(1).
(3) LEASE OF OIL AND GAS LANDS.—Section 17(b)(1)(A) of Definition.
the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended
by subsection (a), is amended by inserting ‘‘For purposes of
the previous sentence, the term ‘eligible lands’ means all lands
that are subject to leasing under this Act and are not excluded
from leasing by a statutory prohibition, and the term ‘available’,
with respect to eligible lands, means those lands that have
been designated as open for leasing under a land use plan
developed under section 202 of the Federal Land Policy and
139 STAT. 138 PUBLIC LAW 119–21—JULY 4, 2025
Management Act of 1976 (43 U.S.C. 1712) and that have been
nominated for leasing through the submission of an expression
of interest, are subject to drainage in the absence of leasing,
or are otherwise designated as available pursuant to regulations
adopted by the Secretary.’’ after ‘‘sales are necessary.’’.
30 USC 226 note. (c) QUARTERLY LEASE SALES.—
State listing. (1) IN GENERAL.—In accordance with the Mineral Leasing
Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary
of the Interior shall conduct a minimum of 4 oil and gas
lease sales of available land in each of the following States:
(A) Wyoming.
(B) New Mexico.
(C) Colorado.
(D) Utah.
(E) Montana.
(F) North Dakota.
(G) Oklahoma.
(H) Nevada.
(I) Alaska.
(2) REQUIREMENT.—In conducting a lease sale under para-
graph (1) in a State described in that paragraph, the Secretary
of the Interior—
(A) shall offer not less than 50 percent of available
parcels nominated for oil and gas development under the
applicable resource management plan in effect for relevant
Bureau of Land Management resource management areas
within the applicable State; and
(B) shall not restrict the parcels offered to 1 Bureau
of Land Management field office within the applicable State
unless all nominated parcels are located within the same
Bureau of Land Management field office.
(3) REPLACEMENT SALES.—The Secretary of the Interior
shall conduct a replacement sale during the same fiscal year
if—
(A) a lease sale under paragraph (1) is canceled,
delayed, or deferred, including for a lack of eligible parcels;
or
(B) during a lease sale under paragraph (1) the percent-
age of acreage that does not receive a bid is equal to
or greater than 25 percent of the acreage offered.
(d) MINERAL LEASING ACT REFORMS.—Section 17 of the Mineral
Leasing Act (30 U.S.C. 226), as amended by subsection (a), is
amended—
(1) by striking the section designation and all that follows
through the end of subsection (a) and inserting the following:
‘‘SEC. 17. LEASING OF OIL AND GAS PARCELS.
‘‘(a) LEASING AUTHORIZED.—
Deadline. ‘‘(1) IN GENERAL.—Any parcel of land subject to disposition
Determination. under this Act that is known or believed to contain oil or
gas deposits shall be made available for leasing, subject to
paragraph (2), by the Secretary of the Interior, not later than
18 months after the date of receipt by the Secretary of an
expression of interest in leasing the applicable parcel of land
available for disposition under this section, if the Secretary
determines that the parcel of land is open to oil or gas leasing
under the approved resource management plan applicable to
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 139
the planning area in which the parcel of land is located that
is in effect on the date on which the expression of interest
was submitted to the Secretary (referred to in this subsection
as the ‘approved resource management plan’).
‘‘(2) RESOURCE MANAGEMENT PLANS.—
‘‘(A) LEASE TERMS AND CONDITIONS.—A lease issued
by the Secretary under this section with respect to an
applicable parcel of land made available for leasing under
paragraph (1)—
‘‘(i) shall be subject to the terms and conditions
of the approved resource management plan; and
‘‘(ii) may not require any stipulations or mitigation
requirements not included in the approved resource
management plan.
‘‘(B) EFFECT OF AMENDMENT.—The initiation of an
amendment to an approved resource management plan
shall not prevent or delay the Secretary from making the
applicable parcel of land available for leasing in accordance
with that approved resource management plan if the other
requirements of this section have been met, as determined
by the Secretary.’’;
(2) in subsection (p), by adding at the end the following:
‘‘(4) TERM.—A permit to drill approved under this sub- Effective date.
section shall be valid for a single, non-renewable 4-year period
beginning on the date that the permit to drill is approved.’’;
and
(3) by striking subsection (q) and inserting the following:
‘‘(q) COMMINGLING OF PRODUCTION.—The Secretary of the Approval.
Interior shall approve applications allowing for the commingling
of production from 2 or more sources (including the area of an
oil and gas lease, the area included in a drilling spacing unit,
a unit participating area, a communitized area, or non-Federal
property) before production reaches the point of royalty measure-
ment regardless of ownership, the royalty rates, and the number
or percentage of acres for each source if the applicant agrees to
install measurement devices for each source, utilize an allocation
method that achieves volume measurement uncertainty levels
within plus or minus 2 percent during the production phase reported
on a monthly basis, or utilize an approved periodic well testing
methodology. Production from multiple oil and gas leases, drilling
spacing units, communitized areas, or participating areas from a
single wellbore shall be considered a single source. Nothing in
this subsection shall prevent the Secretary of the Interior from
continuing the current practice of exercising discretion to authorize
higher percentage volume measurement uncertainty levels if appro-
priate technical and economic justifications have been provided.’’.
SEC. 50102. OFFSHORE OIL AND GAS LEASING.
(a) LEASE SALES.— 43 USC 1331
(1) GULF OF AMERICA REGION.— note.
(A) IN GENERAL.—Notwithstanding the 2024–2029
National Outer Continental Shelf Oil and Gas Leasing
Program (and any successor leasing program that does
not satisfy the requirements of this section), in addition
to lease sales which may be held under that program,
and except within areas subject to existing oil and gas
139 STAT. 140 PUBLIC LAW 119–21—JULY 4, 2025
leasing moratoria, the Secretary of the Interior shall con-
duct a minimum of 30 region-wide oil and gas lease sales,
in a manner consistent with the schedule described in
subparagraph (B), in the region identified in the map
depicting lease terms and economic conditions accom-
panying the final notice of sale of the Bureau of Ocean
Energy Management entitled ‘‘Gulf of Mexico Outer Conti-
nental Shelf Region-Wide Oil and Gas Lease Sale 254’’
(85 Fed. Reg. 8010 (February 12, 2020)).
Deadlines. (B) TIMING REQUIREMENT.—Of the not fewer than 30
Time periods. region-wide lease sales required under this paragraph, the
Secretary of the Interior shall—
(i) hold not fewer than 1 lease sale in the region
described in subparagraph (A) by December 15, 2025;
(ii) hold not fewer than 2 lease sales in that region
in each of calendar years 2026 through 2039, 1 of
which shall be held by March 15 of the applicable
calendar year and 1 of which shall be held after March
15 but not later than August 15 of the applicable
calendar year; and
(iii) hold not fewer than 1 lease sale in that region
in calendar year 2040, which shall be held by March
15, 2040.
(2) ALASKA REGION.—
(A) IN GENERAL.—The Secretary of the Interior shall
conduct a minimum of 6 offshore lease sales, in a manner
consistent with the schedule described in subparagraph
(B), in the Cook Inlet Planning Area as identified in the
2017–2022 Outer Continental Shelf Oil and Gas Leasing
Proposed Final Program published on November 18, 2016,
by the Bureau of Ocean Energy Management (as announced
in the notice of availability of the Bureau of Ocean Energy
Management entitled ‘‘Notice of Availability of the 2017–
2022 Outer Continental Shelf Oil and Gas Leasing Pro-
posed Final Program’’ (81 Fed. Reg. 84612 (November 23,
2016))).
Deadlines. (B) TIMING REQUIREMENT.—Of the not fewer than 6
lease sales required under this paragraph, the Secretary
of the Interior shall hold not fewer than 1 lease sale in
the area described in subparagraph (A) in each of calendar
years 2026 through 2028, and in each of calendar years
2030 through 2032, by March 15 of the applicable calendar
year.
(b) REQUIREMENTS.—
(1) TERMS AND STIPULATIONS FOR GULF OF AMERICA
SALES.—In conducting lease sales under subsection (a)(1), the
Secretary of the Interior—
(A) shall, subject to subparagraph (C), offer the same
lease form, lease terms, economic conditions, and lease
stipulations 4 through 9 as contained in the final notice
of sale of the Bureau of Ocean Energy Management entitled
‘‘Gulf of Mexico Outer Continental Shelf Region-Wide Oil
and Gas Lease Sale 254’’ (85 Fed. Reg. 8010 (February
12, 2020));
Update. (B) may update lease stipulations 1 through 3 and
10 described in that final notice of sale to reflect current
conditions for lease sales conducted under subsection (a)(1);
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 141
(C) shall set the royalty rate at not less than 121⁄2
percent but not greater than 162⁄3 percent; and
(D) shall, for a lease in water depths of 800 meters
or deeper issued as a result of a sale, set the primary
term for 10 years.
(2) TERMS AND STIPULATIONS FOR ALASKA REGION SALES.—
(A) IN GENERAL.—In conducting lease sales under sub-
section (a)(2), the Secretary of the Interior shall offer the
same lease form, lease terms, economic conditions, and
stipulations as contained in the final notice of sale of the
Bureau of Ocean Energy Management entitled ‘‘Cook Inlet
Planning Area Outer Continental Shelf Oil and Gas Lease
Sale 244’’ (82 Fed. Reg. 23291 (May 22, 2017)).
(B) REVENUE SHARING.—Notwithstanding section 8(g) Effective date.
and section 9 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(g), 1338), and beginning in fiscal year
2034, of the bonuses, rents, royalties, and other revenues
derived from lease sales conducted under subsection
(a)(2)—
(i) 70 percent shall be paid to the State of Alaska;
and
(ii) 30 percent shall be deposited in the Treasury
and credited to miscellaneous receipts.
(3) AREA OFFERED FOR LEASE.—
(A) GULF OF AMERICA REGION.—For each offshore lease
sale conducted under subsection (a)(1), the Secretary of
the Interior shall—
(i) offer not fewer than 80,000,000 acres; or
(ii) if there are fewer than 80,000,000 acres that
are unleased and available, offer all unleased and
available acres.
(B) ALASKA REGION.—For each offshore lease sale con-
ducted under subsection (a)(2), the Secretary of the Interior
shall—
(i) offer not fewer than 1,000,000 acres; or
(ii) if there are fewer than 1,000,000 acres that
are unleased and available, offer all unleased and
available acres.
(c) OFFSHORE COMMINGLING.—The Secretary of the Interior Approval.
shall approve a request of an operator to commingle oil or gas Determination.
production from multiple reservoirs within a single wellbore com-
pleted on the outer Continental Shelf in the Gulf of America Region
unless the Secretary of the Interior determines that conclusive
evidence establishes that the commingling—
(1) could not be conducted by the operator in a safe manner;
or
(2) would result in an ultimate recovery from the applicable
reservoirs to be reduced in comparison to the expected recovery
of those reservoirs if they had not been commingled.
(d) OFFSHORE OIL AND GAS ROYALTY RATE.—
(1) REPEAL.—Section 50261 of Public Law 117–169 (136 43 USC 1337 and
Stat. 2056) is repealed, and any provision of law amended note.
or repealed by that section is restored or revived as if that
section had not been enacted into law.
(2) ROYALTY RATE.—Section 8(a)(1) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by para-
graph (1)) is amended—
139 STAT. 142 PUBLIC LAW 119–21—JULY 4, 2025
(A) in subparagraph (A), by striking ‘‘not less than
121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent,
but not more than 162⁄3 percent,’’;
(B) in subparagraph (C), by striking ‘‘not less than
121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent,
but not more than 162⁄3 percent,’’;
(C) in subparagraph (F), by striking ‘‘no less than
121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent,
but not more than 162⁄3 percent,’’; and
(D) in subparagraph (H), by striking ‘‘no less than
12 and 1⁄2 per centum’’ and inserting ‘‘not less than 121⁄2
percent, but not more than 162⁄3 percent,’’.
(e) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER
CONTINENTAL SHELF REVENUES.—Section 105(f)(1) of the Gulf of
Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public
Law 109–432) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at the end;
(2) in subparagraph (C), by striking ‘‘2055.’’ and inserting
‘‘2024;’’; and
(3) by adding at the end the following:
‘‘(D) $650,000,000 for each of fiscal years 2025 through
2034; and
‘‘(E) $500,000,000 for each of fiscal years 2035 through
2055.’’.
Repeal. SEC. 50103. ROYALTIES ON EXTRACTED METHANE.
Section 50263 of Public Law 117–169 (30 U.S.C. 1727) is
repealed.
16 USC 3143 SEC. 50104. ALASKA OIL AND GAS LEASING.
note.
(a) DEFINITIONS.—In this section:
(1) COASTAL PLAIN.—The term ‘‘Coastal Plain’’ has the
meaning given the term in section 20001(a) of Public Law
115–97 (16 U.S.C. 3143 note).
(2) OIL AND GAS PROGRAM.—The term ‘‘oil and gas program’’
means the oil and gas program established under section
20001(b)(2) of Public Law 115–97 (16 U.S.C. 3143 note).
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior, acting through the Bureau of Land Management.
(b) LEASE SALES REQUIRED.—
Deadline. (1) IN GENERAL.—Subject to paragraph (3), in addition to
the lease sales required under section 20001(c)(1)(A) of Public
Law 115–97 (16 U.S.C. 3143 note), the Secretary shall conduct
not fewer than 4 lease sales area-wide under the oil and gas
program by not later than 10 years after the date of enactment
of this Act.
(2) TERMS AND CONDITIONS.—In conducting lease sales
under paragraph (1), the Secretary shall offer the same terms
and conditions as contained in the record of decision described
in the notice of availability of the Bureau of Land Management
entitled ‘‘Notice of Availability of the Record of Decision for
the Final Environmental Impact Statement for the Coastal
Plain Oil and Gas Leasing Program, Alaska’’ (85 Fed. Reg.
51754 (August 21, 2020)).
(3) SALE ACREAGES; SCHEDULE.—
(A) ACREAGES.—In conducting the lease sales required
under paragraph (1), the Secretary shall offer for lease
under the oil and gas program—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 143
(i) not fewer than 400,000 acres area-wide in each
lease sale; and
(ii) those areas that have the highest potential
for the discovery of hydrocarbons.
(B) SCHEDULE.—The Secretary shall offer— Deadlines.
(i) the initial lease sale under paragraph (1) not
later than 1 year after the date of enactment of this
Act;
(ii) a second lease sale under paragraph (1) not
later than 3 years after the date of enactment of this
Act;
(iii) a third lease sale under paragraph (1) not
later than 5 years after the date of enactment of this
Act; and
(iv) a fourth lease sale under paragraph (1) not
later than 7 years after the date of enactment of this
Act.
(4) RIGHTS-OF-WAY.—Section 20001(c)(2) of Public Law 115– Applicability.
97 (16 U.S.C. 3143 note) shall apply to leases awarded under
this subsection.
(5) SURFACE DEVELOPMENT.—Section 20001(c)(3) of Public Applicability.
Law 115–97 (16 U.S.C. 3143 note) shall apply to leases awarded
under this subsection.
(c) RECEIPTS.—Notwithstanding section 35 of the Mineral Time periods.
Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law
115–97 (16 U.S.C. 3143 note), of the amount of adjusted bonus,
rental, and royalty receipts derived from the oil and gas program
and operations on the Coastal Plain pursuant to this section—
(1)(A) for each of fiscal years 2025 through 2033, 50 percent
shall be paid to the State of Alaska; and
(B) for fiscal year 2034 and each fiscal year thereafter,
70 percent shall be paid to the State of Alaska; and
(2) the balance shall be deposited into the Treasury as
miscellaneous receipts.
SEC. 50105. NATIONAL PETROLEUM RESERVE–ALASKA.
(a) DEFINITIONS.—In this section: 42 USC 6506a
(1) NPR–A FINAL ENVIRONMENTAL IMPACT STATEMENT.— note.
The term ‘‘NPR–A final environmental impact statement’’
means the final environmental impact statement published by
the Bureau of Land Management entitled ‘‘National Petroleum
Reserve in Alaska Integrated Activity Plan Final Environ-
mental Impact Statement’’ and dated June 2020, including
the errata sheet dated October 6, 2020, and excluding the
errata sheet dated September 20, 2022.
(2) NPR–A RECORD OF DECISION.—The term ‘‘NPR–A record
of decision’’ means the record of decision published by the
Bureau of Land Management entitled ‘‘National Petroleum
Reserve in Alaska Integrated Activity Plan Record of Decision’’
and dated December 2020.
(3) PROGRAM.—The term ‘‘Program’’ means the competitive
oil and gas leasing, exploration, development, and production
program established under section 107 of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a).
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
139 STAT. 144 PUBLIC LAW 119–21—JULY 4, 2025
(b) RESTORATION OF NPR–A OIL AND GAS LEASING PROGRAM.—
Effective date. Effective beginning on the date of enactment of this Act, the Sec-
retary shall expeditiously restore and resume oil and gas lease
sales under the Program for domestic energy production and Federal
revenue in the areas designated for oil and gas leasing as described
in the NPR–A final environmental impact statement and the NPR–
A record of decision.
Deadlines. (c) RESUMPTION OF NPR–A LEASE SALES.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall conduct not fewer than 5 lease sales under the Program
by not later than 10 years after the date of enactment of
this Act.
(2) SALES ACREAGES; SCHEDULE.—
(A) ACREAGES.—In conducting the lease sales required
under paragraph (1), the Secretary shall offer not fewer
than 4,000,000 acres in each lease sale.
(B) SCHEDULE.—The Secretary shall offer—
(i) an initial lease sale under paragraph (1) not
later than 1 year after the date of enactment of this
Act; and
(ii) an additional lease sale under paragraph (1)
not later than every 2 years after the date of enactment
of this Act.
(d) TERMS AND STIPULATIONS FOR NPR–A LEASE SALES.—In
conducting lease sales under subsection (c), the Secretary shall
offer the same lease form, lease terms, economic conditions, and
stipulations as described in the NPR–A final environmental impact
statement and the NPR–A record of decision.
(e) RECEIPTS.—Section 107(l) of the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6506a(l)) is amended—
(1) by striking ‘‘All receipts from’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
all receipts from’’; and
(2) by adding at the end the following:
‘‘(2) PERCENT SHARE FOR FISCAL YEAR 2034 AND THERE-
Effective date. AFTER.—Beginning in fiscal year 2034, of the receipts from
sales, rentals, bonuses, and royalties on leases issued pursuant
to this section after the date of enactment of the Act entitled
‘An Act to provide for reconciliation pursuant to title II of
H. Con. Res. 14’ (119th Congress)—
‘‘(A) 70 percent shall be paid to the State of Alaska;
and
‘‘(B) 30 percent shall be paid into the Treasury of
the United States.’’.
Subtitle B—Mining
SEC. 50201. COAL LEASING.
(a) DEFINITIONS.—In this section:
(1) COAL LEASE.—The term ‘‘coal lease’’ means a lease
entered into by the United States as lessor, through the Bureau
of Land Management, and an applicant on Bureau of Land
Management Form 3400-012 (or a successor form that contains
the terms of a coal lease).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 145
(2) QUALIFIED APPLICATION.—The term ‘‘qualified applica-
tion’’ means an application for a coal lease pending as of the
date of enactment of this Act or submitted within 90 days
thereafter under the lease by application program administered
by the Bureau of Land Management pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) for which any required
environmental review has commenced or the Director of the
Bureau of Land Management determines can commence within
90 days after receiving the application.
(b) COAL LEASING ACTIVITIES.—Not later than 90 days after Deadline.
the date of enactment of this Act, the Secretary of the Interior—
(1) shall—
(A) with respect to each qualified application—
(i) if not previously published for public comment, Publication.
publish any required environmental review;
(ii) establish the fair market value of the applicable
coal tract;
(iii) hold a lease sale with respect to the applicable
coal tract; and
(iv) identify the highest bidder at or above the
fair market value and take all other intermediate
actions necessary to identify the winning bidder and
grant the qualified application; and
(2) may—
(A) with respect to a previously issued coal lease, grant
any additional approvals of the Department of the Interior
required for mining activities to commence; and
(B) after completing the actions required by clauses
(i) through (iv) of paragraph (1)(A), grant the qualified
application and issue the applicable lease to the person
that submitted the qualified application if that person sub-
mitted the winning bid in the lease sale held under clause
(iii) of paragraph (1)(A).
SEC. 50202. COAL ROYALTY.
(a) RATE.—Section 7(a) of the Mineral Leasing Act (30 U.S.C. Time period.
207(a)) is amended, in the fourth sentence, by striking ‘‘121⁄2 per
centum’’ and inserting ‘‘121⁄2 percent, except such amount shall
be not more than 7 percent during the period that begins on
the date of enactment of the Act entitled ‘An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14’ (119th Con-
gress) and ends September 30, 2034,’’.
(b) APPLICABILITY TO EXISTING LEASES.—The amendment made 30 USC 207 note.
by subsection (a) shall apply to a coal lease—
(1) issued under section 2 of the Mineral Leasing Act
(30 U.S.C. 201) before, on, or after the date of the enactment
of this Act; and
(2) that has not been terminated.
(c) ADVANCE ROYALTIES.—With respect to a lease issued under 30 USC 207 note.
section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which
the lessee has paid advance royalties under section 7(b) of that
Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide
to the lessee a credit for the difference between the amount paid
by the lessee in advance royalties for the lease before the date
of the enactment of this Act and the amount the lessee would
have been required to pay if the amendment made by subsection
139 STAT. 146 PUBLIC LAW 119–21—JULY 4, 2025
(a) had been made before the lessee paid advance royalties for
the lease.
30 USC 201 note. SEC. 50203. LEASES FOR KNOWN RECOVERABLE COAL RESOURCES.
Deadline. Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act
(30 U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later
than 90 days after the date of enactment of this Act, the Secretary
of the Interior shall make available for lease known recoverable
coal resources of not less than 4,000,000 additional acres on Federal
land located in the 48 contiguous States and Alaska subject to
the jurisdiction of the Secretary, but which shall not include any
Federal land within—
(1) a National Monument;
(2) a National Recreation Area;
(3) a component of the National Wilderness Preservation
System;
(4) a component of the National Wild and Scenic Rivers
System;
(5) a component of the National Trails System;
(6) a National Conservation Area;
(7) a unit of the National Wildlife Refuge System;
(8) a unit of the National Fish Hatchery System; or
(9) a unit of the National Park System.
30 USC 201 note. SEC. 50204. AUTHORIZATION TO MINE FEDERAL COAL.
(a) AUTHORIZATION.—In order to provide access to coal reserves
in adjacent State or private land that without an authorization
could not be mined economically, Federal coal reserves located
in Federal land subject to a mining plan previously approved by
the Secretary of the Interior as of the date of enactment of this
Act and adjacent to coal reserves in adjacent State or private
land are authorized to be mined.
Deadline. (b) REQUIREMENT.—Not later than 90 days after the date of
enactment of this Act, the Secretary of the Interior shall, without
substantial modification, take such steps as are necessary to
authorize the mining of Federal land described in subsection (a).
(c) NEPA.—Nothing in this section shall prevent a review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
Subtitle C—Lands
Time periods. SEC. 50301. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE
FOREST SERVICE AND THE BUREAU OF LAND MANAGE-
MENT.
16 USC 472a (a) FOREST SERVICE.—
note. (1) DEFINITIONS.—In this subsection:
(A) FOREST PLAN.—The term ‘‘forest plan’’ means a
land and resource management plan prepared by the Sec-
retary for a unit of the National Forest System pursuant
to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604).
(B) NATIONAL FOREST SYSTEM.—
(i) IN GENERAL.—The term ‘‘National Forest
System’’ means land of the National Forest System
(as defined in section 11(a) of the Forest and Rangeland
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 147
Renewable Resources Planning Act of 1974 (16 U.S.C.
1609(a))) administered by the Secretary.
(ii) EXCLUSIONS.—The term ‘‘National Forest
System’’ does not include any forest reserve not created
from the public domain.
(C) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture, acting through the Chief of the Forest
Service.
(2) TIMBER SALES ON PUBLIC DOMAIN FOREST RESERVES.—
(A) IN GENERAL.—For each of fiscal years 2026 through
2034, the Secretary shall sell timber annually on National
Forest System land in a total quantity that is not less
than 250,000,000 board-feet greater than the quantity of
board-feet sold in the previous fiscal year.
(B) LIMITATION.—The timber sales under subparagraph
(A) shall be subject to the maximum allowable sale quantity
of timber or the projected timber sale quantity under the
applicable forest plan in effect on the date of enactment
of this Act.
(3) LONG-TERM CONTRACTING FOR THE FOREST SERVICE.—
(A) LONG-TERM CONTRACTING.—For the period of fiscal
years 2025 through 2034, the Secretary shall enter into
not fewer than 40 long-term timber sale contracts with
private persons or other public or private entities under
subsection (a) of section 14 of the National Forest Manage-
ment Act of 1976 (16 U.S.C. 472a) for the sale of national
forest materials (as defined in subsection (e)(1) of that
section) in the National Forest System.
(B) CONTRACT LENGTH.—The period of a timber sale
contract entered into to meet the requirement under
subparagraph (A) shall be not less than 20 years, with
options for extensions or renewals, as determined by the
Secretary.
(C) RECEIPTS.—Any monies derived from a timber sale
contract entered into to meet the requirements under sub-
paragraphs (A) and (B) shall be deposited in the general
fund of the Treasury.
(b) BUREAU OF LAND MANAGEMENT.— 43 USC 1701
(1) DEFINITIONS.—In this subsection: note.
(A) PUBLIC LANDS.—The term ‘‘public lands’’ has the
meaning given the term in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(B) RESOURCE MANAGEMENT PLAN.—The term ‘‘resource
management plan’’ means a land use plan prepared for
public lands under section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712).
(C) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Interior, acting through the Director of the
Bureau of Land Management.
(2) TIMBER SALES ON PUBLIC LANDS.—
(A) IN GENERAL.—For each of fiscal years 2026 through
2034, the Secretary shall sell timber annually on public
lands in a total quantity that is not less than 20,000,000
board-feet greater than the quantity of board-feet sold in
the previous fiscal year.
139 STAT. 148 PUBLIC LAW 119–21—JULY 4, 2025
(B) LIMITATION.—The timber sales under subparagraph
(A) shall be subject to the applicable resource management
plan in effect on the date of enactment of this Act.
(3) LONG-TERM CONTRACTING FOR THE BUREAU OF LAND
MANAGEMENT.—
(A) LONG-TERM CONTRACTING.—For the period of fiscal
years 2025 through 2034, the Secretary shall enter into
not fewer than 5 long-term contracts with private persons
or other public or private entities under section 1 of the
Act of July 31, 1947 (commonly known as the ‘‘Materials
Act of 1947’’) (61 Stat. 681, chapter 406; 30 U.S.C. 601),
for the disposal of vegetative materials described in that
section on public lands.
(B) CONTRACT LENGTH.—The period of a contract
entered into to meet the requirement under subparagraph
(A) shall be not less than 20 years, with options for exten-
sions or renewals, as determined by the Secretary.
(C) RECEIPTS.—Any monies derived from a contract
entered into to meet the requirements under subpara-
graphs (A) and (B) shall be deposited in the general fund
of the Treasury.
43 USC 3007. SEC. 50302. RENEWABLE ENERGY FEES ON FEDERAL LAND.
(a) DEFINITIONS.—In this section:
(1) ANNUAL ADJUSTMENT FACTOR.—The term ‘‘Annual
Adjustment Factor’’ means 3 percent.
(2) ENCUMBRANCE FACTOR.—The term ‘‘Encumbrance
Factor’’ means—
(A) 100 percent for a solar energy generation facility;
and
(B) an amount determined by the Secretary, but not
less than 10 percent for a wind energy generation facility.
(3) NATIONAL FOREST SYSTEM.—
(A) IN GENERAL.—The term ‘‘National Forest System’’
means land of the National Forest System (as defined
in section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
administered by the Secretary of Agriculture.
(B) EXCLUSION.—The term ‘‘National Forest System’’
does not include any forest reserve not created from the
public domain.
(4) PER-ACRE RATE.—The term ‘‘Per-Acre Rate’’, with
respect to a right-of-way, means the average of the per-acre
pastureland rental rates published in the Cash Rents Survey
by the National Agricultural Statistics Service for the State
in which the right-of-way is located over the 5 calendar-year
period preceding the issuance or renewal of the right-of-way.
(5) PROJECT.—The term ‘‘project’’ means a system described
in section 2801.9(a)(4) of title 43, Code of Federal Regulations
(as in effect on the date of enactment of this Act).
(6) PUBLIC LAND.—The term ‘‘public land’’ means—
(A) public lands (as defined in section 103 of the Fed-
eral Land Policy and Management Act of 1976 (43 U.S.C.
1702)); and
(B) National Forest System land.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 149
(7) RENEWABLE ENERGY PROJECT.—The term ‘‘renewable
energy project’’ means a project located on public land that
uses wind or solar energy to generate energy.
(8) RIGHT-OF-WAY.—The term ‘‘right-of-way’’ has the
meaning given the term in section 103 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702).
(9) SECRETARY.—The term ‘‘Secretary’’ means—
(A) the Secretary of the Interior, with respect to land
controlled or administered by the Secretary of the Interior;
and
(B) the Secretary of Agriculture, with respect to
National Forest System land.
(b) ACREAGE RENT FOR WIND AND SOLAR RIGHTS-OF-WAY.—
(1) IN GENERAL.—Pursuant to section 504(g) of the Federal Deadlines.
Land Policy and Management Act of 1976 (43 U.S.C. 1764(g)),
the Secretary shall, subject to paragraph (3) and not later
than January 1 of each calendar year, collect from the holder
of a right-of-way for a renewable energy project an acreage
rent in an amount determined by the equation described in
paragraph (2).
(2) CALCULATION OF ACREAGE RENT RATE.—
(A) EQUATION.—The amount of an acreage rent col-
lected under paragraph (1) shall be determined using the
following equation: Acreage rent = A × B × ((1 + C)D)).
(B) DEFINITIONS.—For purposes of the equation
described in subparagraph (A):
(i) The letter ‘‘A’’ means the Per-Acre Rate.
(ii) The letter ‘‘B’’ means the Encumbrance Factor.
(iii) The letter ‘‘C’’ means the Annual Adjustment
Factor.
(iv) The letter ‘‘D’’ means the year in the term
of the right-of-way.
(3) PAYMENT UNTIL PRODUCTION.—The holder of a right-
of-way for a renewable energy project shall pay an acreage
rent collected under paragraph (1) until the date on which
energy generation begins.
(c) CAPACITY FEES.—
(1) IN GENERAL.—The Secretary shall, subject to paragraph
(3), annually collect a capacity fee from the holder of a right-
of-way for a renewable energy project based on the amount
described in paragraph (2).
(2) CALCULATION OF CAPACITY FEE.—The amount of a
capacity fee collected under paragraph (1) shall be equal to
the greater of—
(A) an amount equal to the acreage rent described
in subsection (b); and
(B) 3.9 percent of the gross proceeds from the sale
of electricity produced by the renewable energy project.
(3) MULTIPLE-USE REDUCTION FACTOR.—
(A) APPLICATION.—The holder of a right-of-way for a
wind energy generation project may request that the Sec-
retary apply a multiple-use reduction factor of 10-percent
to the amount of a capacity fee determined under para-
graph (2) by submitting to the Secretary an application
at such time, in such manner, and containing such informa-
tion as the Secretary may require.
139 STAT. 150 PUBLIC LAW 119–21—JULY 4, 2025
(B) APPROVAL.—The Secretary may approve an applica-
tion submitted under subparagraph (A) only if not less
than 25 percent of the land within the area of the right-
of-way is authorized for use, occupancy, or development
with respect to an activity other than the generation of
wind energy for the entirety of the year in which the
capacity fee is collected.
(C) LATE DETERMINATION.—
Applicability. (i) IN GENERAL.—If the Secretary approves an
Effective date. application under subparagraph (B) for a wind energy
Time periods.
generation project after the date on which the holder
of the right-of-way for the project begins paying a
capacity fee, the Secretary shall apply the multiple-
use reduction factor described in subparagraph (A) to
the capacity fee for the first year beginning after the
date of approval and each year thereafter for the period
during which the right-of-way remains in effect.
(ii) REFUND.—The Secretary may not refund the
holder of a right-of-way for the difference in the amount
of a capacity fee paid in a previous year.
Deadlines. (d) LATE PAYMENT FEE; TERMINATION.—
(1) IN GENERAL.—The Secretary may charge the holder
of a right-of-way for a renewable energy project a late payment
fee if the Secretary does not receive payment for the acreage
rent under subsection (b) or the capacity fee under subsection
(c) by the date that is 15 days after the date on which the
payment was due.
(2) TERMINATION OF RIGHT-OF-WAY.—The Secretary may
terminate a right-of-way for a renewable energy project if the
Secretary does not receive payment for the acreage rent under
subsection (b) or the capacity fee under subsection (c) by the
date that is 90 days after the date on which the payment
was due.
43 USC 3008. SEC. 50303. RENEWABLE ENERGY REVENUE SHARING.
(a) DEFINITIONS.—In this section:
(1) COUNTY.—The term ‘‘county’’ includes a parish, town-
ship, borough, and any other similar, independent unit of local
government.
(2) COVERED LAND.—The term ‘‘covered land’’ means land
that is—
(A) public land administered by the Secretary; and
(B) not excluded from the development of solar or
wind energy under—
(i) a land use plan; or
(ii) other Federal law.
(3) NATIONAL FOREST SYSTEM.—
(A) IN GENERAL.—The term ‘‘National Forest System’’
means land of the National Forest System (as defined
in section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
administered by the Secretary of Agriculture.
(B) EXCLUSION.—The term ‘‘National Forest System’’
does not include any forest reserve not created from the
public domain.
(4) PUBLIC LAND.—The term ‘‘public land’’ means—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 151
(A) public lands (as defined in section 103 of the Fed-
eral Land Policy and Management Act of 1976 (43 U.S.C.
1702)); and
(B) National Forest System land.
(5) RENEWABLE ENERGY PROJECT.—The term ‘‘renewable
energy project’’ means a system described in section 2801.9(a)(4)
of title 43, Code of Federal Regulations (as in effect on the
date of enactment of this Act), located on covered land that
uses wind or solar energy to generate energy.
(6) SECRETARY.—The term ‘‘Secretary’’ means—
(A) the Secretary of the Interior, with respect to land
controlled or administered by the Secretary of the Interior;
and
(B) the Secretary of Agriculture, with respect to
National Forest System land.
(b) DISPOSITION OF REVENUE.—
(1) DISPOSITION OF REVENUES.—Beginning on January 1, Effective date.
2026, the amounts collected from a renewable energy project
as bonus bids, rentals, fees, or other payments under a right-
of-way, permit, lease, or other authorization shall—
(A) be deposited in the general fund of the Treasury;
and
(B) without further appropriation or fiscal year limita- Allocations.
tion, be allocated as follows:
(i) 25 percent shall be paid from amounts in the
general fund of the Treasury to the State within the
boundaries of which the revenue is derived.
(ii) 25 percent shall be paid from amounts in the
general fund of the Treasury to each county in a State
within the boundaries of which the revenue is derived,
to be allocated among each applicable county based
on the percentage of county land from which the rev-
enue is derived.
(2) PAYMENTS TO STATES AND COUNTIES.—
(A) IN GENERAL.—Amounts paid to States and counties
under paragraph (1) shall be used in accordance with the
requirements of section 35 of the Mineral Leasing Act
(30 U.S.C. 191).
(B) PAYMENTS IN LIEU OF TAXES.—A payment to a
county under paragraph (1) shall be in addition to a pay-
ment in lieu of taxes received by the county under chapter
69 of title 31, United States Code.
(C) TIMING.—The amounts required to be paid under
paragraph (1)(B) for an applicable fiscal year shall be made
available in the fiscal year that immediately follows the
fiscal year for which the amounts were collected.
SEC. 50304. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU
OF LAND MANAGEMENT FUNDS.
There are rescinded the unobligated balances of amounts made
available by the following sections of Public Law 117–169 (com-
monly known as the ‘‘Inflation Reduction Act of 2022’’) (136 Stat.
1818):
(1) Section 50221 (136 Stat. 2052).
(2) Section 50222 (136 Stat. 2052).
(3) Section 50223 (136 Stat. 2052).
139 STAT. 152 PUBLIC LAW 119–21—JULY 4, 2025
Appropriation SEC. 50305. CELEBRATING AMERICA’S 250TH ANNIVERSARY.
authorization.
Time period. In addition to amounts otherwise available, there is appro-
Expiration date. priated to the Secretary of the Interior (acting through the Director
of the National Park Service) for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, $150,000,000
for events, celebrations, and activities surrounding the observance
and commemoration of the 250th anniversary of the founding of
the United States, to remain available through fiscal year 2028.
Subtitle D—Energy
SEC. 50401. STRATEGIC PETROLEUM RESERVE.
(a) ENERGY POLICY AND CONSERVATION ACT DEFINITIONS.—
In this section, the terms ‘‘related facility’’, ‘‘storage facility’’, and
‘‘Strategic Petroleum Reserve’’ have the meanings given those terms
in section 152 of the Energy Policy and Conservation Act (42 U.S.C.
6232).
Time period. (b) APPROPRIATIONS.—In addition to amounts otherwise avail-
Expiration date. able, there is appropriated to the Department of Energy for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2029—
(1) $218,000,000 for maintenance of, including repairs to,
storage facilities and related facilities of the Strategic Petro-
leum Reserve; and
(2) $171,000,000 to acquire, by purchase, petroleum prod-
ucts for storage in the Strategic Petroleum Reserve.
(c) REPEAL OF STRATEGIC PETROLEUM RESERVE DRAWDOWN AND
SALE MANDATE.—Section 20003 of Public Law 115–97 (42 U.S.C.
6241 note) is repealed.
SEC. 50402. REPEALS; RESCISSIONS.
(a) REPEAL AND RESCISSION.—Section 50142 of Public Law 117–
169 (136 Stat. 2044) (commonly known as the ‘‘Inflation Reduction
Act of 2022’’) is repealed and the unobligated balance of amounts
made available under that section (as in effect on the day before
the date of enactment of this Act) is rescinded.
(b) RESCISSIONS.—
(1) IN GENERAL.—The unobligated balances of amounts
made available under the sections described in paragraph (2)
are rescinded.
(2) SECTIONS DESCRIBED.—The sections referred to in para-
graph (1) are the following sections of Public Law 117–169
(commonly known as the ‘‘Inflation Reduction Act of 2022’’):
(A) Section 50123 (42 U.S.C. 18795b).
(B) Section 50141 (136 Stat. 2042).
(C) Section 50144 (136 Stat. 2044).
(D) Section 50145 (136 Stat. 2045).
(E) Section 50151 (42 U.S.C. 18715).
(F) Section 50152 (42 U.S.C. 18715a).
(G) Section 50153 (42 U.S.C. 18715b).
(H) Section 50161 (42 U.S.C. 17113b).
SEC. 50403. ENERGY DOMINANCE FINANCING.
(a) IN GENERAL.—Section 1706 of the Energy Policy Act of
2005 (42 U.S.C. 16517) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘or’’ at the end;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 153
(B) in paragraph (2), by striking ‘‘avoid’’ and all that
follows through the period at the end and inserting
‘‘increase capacity or output; or’’; and
(C) by adding at the end the following:
‘‘(3) support or enable the provision of known or
forecastable electric supply at time intervals necessary to main-
tain or enhance grid reliability or other system adequacy
needs.’’;
(2) by striking subsection (c);
(3) by redesignating subsections (d) through (f) as sub-
sections (c) through (e), respectively;
(4) in subsection (c) (as so redesignated)—
(A) in paragraph (1), by adding ‘‘and’’ at the end;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2);
(5) in subsection (e) (as so redesignated), by striking ‘‘for—
’’ in the matter preceding paragraph (1) and all that follows
through the period at the end of paragraph (2) and inserting
‘‘for enabling the identification, leasing, development, produc-
tion, processing, transportation, transmission, refining, and
generation needed for energy and critical minerals.’’; and
(6) by adding at the end the following:
‘‘(f) FUNDING.—
‘‘(1) IN GENERAL.—In addition to amounts otherwise avail- Time period.
able, there is appropriated to the Secretary for fiscal year Expiration date.
2025, out of any money in the Treasury not otherwise appro-
priated, $1,000,000,000, to remain available through September
30, 2028, to carry out activities under this section.
‘‘(2) ADMINISTRATIVE COSTS.—Of the amount made available
under paragraph (1), the Secretary shall use not more than
3 percent for administrative expenses.’’.
(b) COMMITMENT AUTHORITY.—Section 50144(b) of Public Law
117–169 (commonly known as the ‘‘Inflation Reduction Act of 2022’’)
(136 Stat. 2045) is amended by striking ‘‘2026’’ and inserting ‘‘2028’’.
SEC. 50404. TRANSFORMATIONAL ARTIFICIAL INTELLIGENCE MODELS. 15 USC 9461
note.
(a) DEFINITIONS.—In this section:
(1) AMERICAN SCIENCE CLOUD.—The term ‘‘American
science cloud’’ means a system of United States government,
academic, and private sector programs and infrastructures uti-
lizing cloud computing technologies to facilitate and support
scientific research, data sharing, and computational analysis
across various disciplines while ensuring compliance with
applicable legal, regulatory, and privacy standards.
(2) ARTIFICIAL INTELLIGENCE.—The term ‘‘artificial intel-
ligence’’ has the meaning given the term in section 5002 of
the National Artificial Intelligence Initiative Act of 2020 (15
U.S.C. 9401).
(b) TRANSFORMATIONAL MODELS.—The Secretary of Energy
shall—
(1) mobilize National Laboratories to partner with industry
sectors within the United States to curate the scientific data
of the Department of Energy across the National Laboratory
complex so that the data is structured, cleaned, and
preprocessed in a way that makes it suitable for use in artificial
intelligence and machine learning models; and
139 STAT. 154 PUBLIC LAW 119–21—JULY 4, 2025
(2) initiate seed efforts for self-improving artificial intel-
ligence models for science and engineering powered by the
data described in paragraph (1).
(c) USES.—
(1) MICROELECTRONICS.—The curated data described in
subsection (b)(1) may be used to rapidly develop next-generation
microelectronics that have greater capabilities beyond Moore’s
law while requiring lower energy consumption.
(2) NEW ENERGY TECHNOLOGIES.—The artificial intelligence
models developed under subsection (b)(2) shall be provided
to the scientific community through the American science cloud
to accelerate innovation in discovery science and engineering
for new energy technologies.
(d) APPROPRIATIONS.—There is appropriated, out of any funds
in the Treasury not otherwise appropriated, $150,000,000, to remain
available through September 30, 2026, to carry out this section.
Subtitle E—Water
Appropriation SEC. 50501. WATER CONVEYANCE AND SURFACE WATER STORAGE
authorization. ENHANCEMENT.
Time period.
Expiration date. In addition to amounts otherwise available, there is appro-
priated to the Secretary of the Interior, acting through the Commis-
sioner of Reclamation, for fiscal year 2025, out of any funds in
the Treasury not otherwise appropriated, $1,000,000,000, to remain
available through September 30, 2034, for construction and associ-
ated activities that restore or increase the capacity or use of existing
conveyance facilities constructed by the Bureau of Reclamation
or for construction and associated activities that increase the
capacity of existing Bureau of Reclamation surface water storage
facilities, in a manner as determined by the Secretary of the
Interior, acting through the Commissioner of Reclamation: Provided,
Contracts. That, for the purposes of section 203 of the Reclamation Reform
Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Reclamation
Projects Authorization and Adjustment Act of 1992 (Public Law
102–575; 106 Stat. 4708), a contract or agreement entered into
pursuant to this section shall not be treated as a new or amended
contract: Provided further, That none of the funds provided under
this section shall be reimbursable or subject to matching or cost-
sharing requirements.
TITLE VI—COMMITTEE ON
ENVIRONMENT AND PUBLIC WORKS
SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY
VEHICLES.
The unobligated balances of amounts made available to carry
out section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded.
Rescission. SEC. 60002. REPEAL OF GREENHOUSE GAS REDUCTION FUND.
Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed
and the unobligated balances of amounts made available to carry
out that section (as in effect on the day before the date of enactment
of this Act) are rescinded.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 155
SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUC-
TIONS.
The unobligated balances of amounts made available to carry
out section 60104 of Public Law 117–169 (136 Stat. 2067) are
rescinded.
SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION.
The unobligated balances of amounts made available to carry
out section 60105 of Public Law 117–169 (136 Stat. 2067) are
rescinded.
SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION
AT SCHOOLS.
The unobligated balances of amounts made available to carry
out section 60106 of Public Law 117–169 (136 Stat. 2069) are
rescinded.
SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS ELEC-
TRICITY PROGRAM.
The unobligated balances of amounts made available to carry
out section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded.
SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE
CLEAN AIR ACT.
The unobligated balances of amounts made available to carry
out section 60108 of Public Law 117–169 (136 Stat. 2070) are
rescinded.
SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE
AMERICAN INNOVATION AND MANUFACTURING ACT.
The unobligated balances of amounts made available to carry
out section 60109 of Public Law 117–169 (136 Stat. 2071) are
rescinded.
SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECH-
NOLOGY AND PUBLIC INFORMATION.
The unobligated balances of amounts made available to carry
out section 60110 of Public Law 117–169 (136 Stat. 2071) are
rescinded.
SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS COR-
PORATE REPORTING.
The unobligated balances of amounts made available to carry
out section 60111 of Public Law 117–169 (136 Stat. 2072) are
rescinded.
SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT
DECLARATION ASSISTANCE.
The unobligated balances of amounts made available to carry
out section 60112 of Public Law 117–169 (42 U.S.C. 4321 note;
136 Stat. 2072) are rescinded.
SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND
WASTE REDUCTION INCENTIVE PROGRAM FOR PETRO-
LEUM AND NATURAL GAS SYSTEMS.
(a) RESCISSION.—The unobligated balances of amounts made
available to carry out subsections (a) and (b) of section 136 of
the Clean Air Act (42 U.S.C. 7436) are rescinded.
139 STAT. 156 PUBLIC LAW 119–21—JULY 4, 2025
(b) PERIOD.—Section 136(g) of the Clean Air Act (42 U.S.C.
7436(g)) is amended by striking ‘‘calendar year 2024’’ and inserting
‘‘calendar year 2034’’.
SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR
POLLUTION PLANS AND IMPLEMENTATION GRANTS.
The unobligated balances of amounts made available to carry
out section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded.
SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTEC-
TION AGENCY EFFICIENT, ACCURATE, AND TIMELY
REVIEWS.
The unobligated balances of amounts made available to carry
out section 60115 of Public Law 117–169 (136 Stat. 2077) are
rescinded.
SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON
LABELING FOR CONSTRUCTION MATERIALS.
The unobligated balances of amounts made available to carry
out section 60116 of Public Law 117–169 (42 U.S.C. 4321 note;
136 Stat. 2077) are rescinded.
SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLI-
MATE JUSTICE BLOCK GRANTS.
The unobligated balances of amounts made available to carry
out section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded.
SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS.
The unobligated balances of amounts made available to carry
out section 60301 of Public Law 117–169 (136 Stat. 2079) are
rescinded.
SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLI-
MATE DATA COLLECTION.
The unobligated balances of amounts made available to carry
out section 60401 of Public Law 117–169 (136 Stat. 2079) are
rescinded.
SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY
GRANT PROGRAM.
The unobligated balances of amounts made available to carry
out section 177 of title 23, United States Code, are rescinded.
SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSIST-
ANCE.
The unobligated balances of amounts made available to carry
out section 60502 of Public Law 117–169 (136 Stat. 2083) are
rescinded.
SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS
FOR FEDERAL BUILDINGS.
The unobligated balances of amounts made available to carry
out section 60503 of Public Law 117–169 (136 Stat. 2083) are
rescinded.
SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND
SUSTAINABLE TECHNOLOGIES.
The unobligated balances of amounts made available to carry
out section 60504 of Public Law 117–169 (136 Stat. 2083) are
rescinded.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 157
SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTA-
TION FUNDS.
The unobligated balances of amounts made available to carry
out section 178 of title 23, United States Code, are rescinded.
SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATE-
RIALS GRANTS.
The unobligated balances of amounts made available to carry
out section 179 of title 23, United States Code, are rescinded.
SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS.
(a) IN GENERAL.—In addition to amounts otherwise available, Appropriation
there is appropriated for fiscal year 2025, out of any money in authorization.
the Treasury not otherwise appropriated, $256,657,000, to remain Time period.
Expiration date.
available until September 30, 2029, for necessary expenses for
capital repair, restoration, maintenance backlog, and security struc-
tures of the building and site of the John F. Kennedy Center
for the Performing Arts.
(b) ADMINISTRATIVE COSTS.—Of the amounts made available
under subsection (a), not more than 3 percent may be used for
administrative costs necessary to carry out this section.
SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL
REVIEWS.
Title I of the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.) is amended by adding at the end the following:
‘‘SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL 42 USC 4336f.
REVIEWS.
‘‘(a) PROCESS.—
‘‘(1) PROJECT SPONSOR.—A project sponsor that intends to
pay a fee under this section for the preparation, or supervision
of the preparation, of an environmental assessment or environ-
mental impact statement for a project shall submit to the
Council—
‘‘(A) a description of the project; and
‘‘(B) a declaration of whether the project sponsor
intends to prepare the environmental assessment or
environmental impact statement under section 107(f).
‘‘(2) COUNCIL ON ENVIRONMENTAL QUALITY.—Not later than Deadline.
15 days after the date on which the Council receives information Notice.
described in paragraph (1) from a project sponsor, the Council
shall provide to the project sponsor notice of the amount of
the fee to be paid under this section, as determined under
subsection (b).
‘‘(3) PAYMENT OF FEE.—A project sponsor may pay a fee
under this section after receipt of the notice described in para-
graph (2).
‘‘(4) DEADLINE FOR ENVIRONMENTAL REVIEWS FOR WHICH
A FEE IS PAID.—Notwithstanding section 107(g)(1)—
‘‘(A) an environmental assessment for which a fee is
paid under this section shall be completed not later than
180 days after the date on which the fee is paid; and
‘‘(B) an environmental impact statement for which a
fee is paid under this section shall be completed not later
than 1 year after the date of publication of the notice
of intent to prepare the environmental impact statement.
139 STAT. 158 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(b) FEE AMOUNT.—The amount of a fee under this section
shall be—
‘‘(1) 125 percent of the anticipated costs to prepare the
environmental assessment or environmental impact statement;
and
‘‘(2) in the case of an environmental assessment or environ-
mental impact statement to be prepared in whole or in part
by a project sponsor under section 107(f), 125 percent of the
anticipated costs to supervise preparation of, and, as applicable,
prepare, the environmental assessment or environmental
impact statement.’’.
TITLE VII—FINANCE
Subtitle A—Tax
SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986,
ETC.
(a) REFERENCES.—Except as otherwise expressly provided,
whenever in this title, an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
26 USC 15 note. (b) CERTAIN RULES REGARDING EFFECT OF RATE CHANGES NOT
APPLICABLE.—Section 15 of the Internal Revenue Code of 1986
shall not apply to any change in rate of tax by reason of any
provision of, or amendment made by, this title.
CHAPTER 1—PROVIDING PERMANENT TAX RELIEF FOR
MIDDLE-CLASS FAMILIES AND WORKERS
SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES.
26 USC 1. (a) IN GENERAL.—Section 1(j) is amended—
(1) in paragraph (1), by striking ‘‘, and before January
1, 2026’’, and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) INFLATION ADJUSTMENT.—Section 1(j)(3)(B)(i) is amended
by inserting ‘‘solely for purposes of determining the dollar amounts
at which any rate bracket higher than 12 percent ends and at
which any rate bracket higher than 22 percent begins,’’ before
‘‘subsection (f)(3)’’.
26 USC 1 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED
STANDARD DEDUCTION.
(a) IN GENERAL.—Section 63(c)(7) is amended—
(1) by striking ‘‘, and before January 1, 2026’’ in the matter
preceding subparagraph (A), and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) ADDITIONAL INCREASE IN STANDARD DEDUCTION.—Para-
graph (7) of section 63(c) is amended—
(1) by striking ‘‘$18,000’’ both places it appears in subpara-
graphs (A)(i) and (B)(ii) and inserting ‘‘$23,625’’,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 159
(2) by striking ‘‘$12,000’’ both places it appears in subpara-
graphs (A)(ii) and (B)(ii) and inserting ‘‘$15,750’’,
(3) by striking ‘‘2018’’ in subparagraph (B)(ii) and inserting
‘‘2025’’, and
(4) by striking ‘‘2017’’ in subparagraph (B)(ii)(II) and
inserting ‘‘2024’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 63 note.
shall apply to taxable years beginning after December 31, 2024.
SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMP-
TIONS OTHER THAN TEMPORARY SENIOR DEDUCTION.
(a) IN GENERAL.—Section 151(d)(5) is amended—.
(1) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’,
(2) by striking ‘‘, and before January 1, 2026’’, and
(3) by adding at the end the following new subparagraph:
‘‘(C) DEDUCTION FOR SENIORS.— Definitions.
‘‘(i) IN GENERAL.—In the case of a taxable year Effective date.
beginning before January 1, 2029, there shall be
allowed a deduction in an amount equal to $6,000
for each qualified individual with respect to the tax-
payer.
‘‘(ii) QUALIFIED INDIVIDUAL.—For purposes of
clause (i), the term ‘qualified individual’ means—
‘‘(I) the taxpayer, if the taxpayer has attained
age 65 before the close of the taxable year, and
‘‘(II) in the case of a joint return, the taxpayer’s
spouse, if such spouse has attained age 65 before
the close of the taxable year.
‘‘(iii) LIMITATION BASED ON MODIFIED ADJUSTED
GROSS INCOME.—
‘‘(I) IN GENERAL.—In the case of any taxpayer
for any taxable year, the $6,000 amount in clause
(i) shall be reduced (but not below zero) by 6
percent of so much of the taxpayer’s modified
adjusted gross income as exceeds $75,000
($150,000 in the case of a joint return).
‘‘(II) MODIFIED ADJUSTED GROSS INCOME.—For
purposes of this clause, the term ‘modified adjusted
gross income’ means the adjusted gross income
of the taxpayer for the taxable year increased by
any amount excluded from gross income under
section 911, 931, or 933.
‘‘(iv) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(I) IN GENERAL.—Clause (i) shall not apply
with respect to a qualified individual unless the
taxpayer includes such qualified individual’s social
security number on the return of tax for the tax-
able year.
‘‘(II) SOCIAL SECURITY NUMBER.—For purposes
of subclause (I), the term ‘social security number’
has the meaning given such term in section
24(h)(7).
‘‘(v) MARRIED INDIVIDUALS.—If the taxpayer is a Applicability.
married individual (within the meaning of section
139 STAT. 160 PUBLIC LAW 119–21—JULY 4, 2025
7703), this subparagraph shall apply only if the tax-
payer and the taxpayer’s spouse file a joint return
for the taxable year.’’.
(b) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED
AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2) is
amended by striking ‘‘and’’ at the end of subparagraph (U), by
striking the period at the end of subparagraph (V) and inserting
‘‘, and’’, and by inserting after subparagraph (V) the following
new subparagraph:
‘‘(W) an omission of a correct social security number
required under section 151(d)(5)(C) (relating to deduction
for seniors).’’.
26 USC 151 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2024.
SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD
TAX CREDIT.
(a) EXTENSION AND INCREASE OF EXPANDED CHILD TAX
CREDIT.—Section 24(h) is amended—
(1) in paragraph (1), by striking ‘‘, and before January
1, 2026’’,
(2) in paragraph (2), by striking ‘‘$2,000’’ and inserting
‘‘$2,200’’, and
(3) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) SOCIAL SECURITY NUMBER REQUIRED.—Section 24(h)(7) is
amended to read as follows:
‘‘(7) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(A) IN GENERAL.—No credit shall be allowed under
this section to a taxpayer with respect to any qualifying
child unless the taxpayer includes on the return of tax
for the taxable year—
‘‘(i) the taxpayer’s social security number (or, in
the case of a joint return, the social security number
of at least 1 spouse), and
‘‘(ii) the social security number of such qualifying
child.
Definition. ‘‘(B) SOCIAL SECURITY NUMBER.—For purposes of this
paragraph, the term ‘social security number’ means a social
security number issued to an individual by the Social Secu-
rity Administration, but only if the social security number
is issued—
‘‘(i) to a citizen of the United States or pursuant
to subclause (I) (or that portion of subclause (III) that
relates to subclause (I)) of section 205(c)(2)(B)(i) of
the Social Security Act, and
‘‘(ii) before the due date for such return.’’.
(c) INFLATION ADJUSTMENTS.—Section 24(i) is amended to read
as follows:
Effective dates. ‘‘(i) INFLATION ADJUSTMENTS.—
‘‘(1) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.—In the
case of a taxable year beginning after 2024, the $1,400 amount
in subsection (h)(5) shall be increased by an amount equal
to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 161
year begins, determined by substituting ‘2017’ for ‘2016’
in subparagraph (A)(ii) thereof.
‘‘(2) SPECIAL RULE FOR ADJUSTMENT OF CREDIT AMOUNT.—
In the case of a taxable year beginning after 2025, the $2,200
amount in subsection (h)(2) shall be increased by an amount
equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘2024’ for ‘2016’
in subparagraph (A)(ii) thereof.
‘‘(3) ROUNDING.—If any increase under this subsection is
not a multiple of $100, such increase shall be rounded to
the next lowest multiple of $100.’’.
(d) CONFORMING AMENDMENT.—Section 24(h)(5) is amended to
read as follows:
‘‘(5) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.—The Applicability.
amount determined under subsection (d)(1)(A) with respect to
any qualifying child shall not exceed $1,400, and such sub-
section shall be applied without regard to paragraph (4) of
this subsection.’’.
(e) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED
AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2)(I) is
amended by striking ‘‘section 24(e)’’ and inserting ‘‘section 24’’.
(f) EFFECTIVE DATE.—The amendments made by this section 26 USC 24 note.
shall apply to taxable years beginning after December 31, 2024.
SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR
QUALIFIED BUSINESS INCOME.
(a) INCREASE IN TAXABLE INCOME LIMITATION PHASE-IN
AMOUNTS.—
(1) IN GENERAL.—Subparagraph (B) of section 199A(b)(3)
is amended by striking ‘‘$50,000 ($100,000 in the case of a
joint return)’’ each place it appears and inserting ‘‘$75,000
($150,000 in the case of a joint return)’’.
(2) CONFORMING AMENDMENT.—Paragraph (3) of section
199A(d) is amended by striking ‘‘$50,000 ($100,000 in the case
of a joint return)’’ each place it appears and inserting ‘‘$75,000
($150,000 in the case of a joint return)’’.
(b) MINIMUM DEDUCTION FOR ACTIVE QUALIFIED BUSINESS
INCOME.—
(1) IN GENERAL.—Subsection (i) of section 199A is amended
to read as follows:
‘‘(i) MINIMUM DEDUCTION FOR ACTIVE QUALIFIED BUSINESS
INCOME.—
‘‘(1) IN GENERAL.—In the case of an applicable taxpayer
for any taxable year, the deduction allowed under subsection
(a) for the taxable year shall be equal to the greater of—
‘‘(A) the amount of such deduction determined without
regard to this subsection, or
‘‘(B) $400.
‘‘(2) APPLICABLE TAXPAYER.—For purposes of this sub- Definitions.
section—
‘‘(A) IN GENERAL.—The term ‘applicable taxpayer’
means, with respect to any taxable year, a taxpayer whose
aggregate qualified business income with respect to all
139 STAT. 162 PUBLIC LAW 119–21—JULY 4, 2025
active qualified trades or businesses of the taxpayer for
such taxable year is at least $1,000.
‘‘(B) ACTIVE QUALIFIED TRADE OR BUSINESS.—The term
‘active qualified trade or business’ means, with respect
to any taxpayer for any taxable year, any qualified trade
or business of the taxpayer in which the taxpayer materi-
ally participates (within the meaning of section 469(h)).
Effective date. ‘‘(3) INFLATION ADJUSTMENT.—In the case of any taxable
year beginning after 2026, the $400 amount in paragraph (1)(B)
and the $1,000 amount in paragraph (2)(A) shall each be
increased by an amount equal to —
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
2025’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
If any increase under this paragraph is not a multiple of
$5, such increase shall be rounded to the nearest multiple
of $5.’’.
(2) CONFORMING AMENDMENT.—Section 199A(a) is amended
by inserting ‘‘except as provided in subsection (i),’’ before
‘‘there’’.
26 USC 199A (c) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to taxable years beginning after December 31, 2025.
SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE
AND GIFT TAX EXEMPTION AMOUNTS.
(a) IN GENERAL.—Section 2010(c)(3) is amended—
(1) in subparagraph (A) by striking ‘‘$5,000,000’’ and
inserting ‘‘$15,000,000’’,
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking
‘‘2011’’ and inserting ‘‘2026’’, and
(B) in clause (ii), by striking ‘‘calendar year 2010’’
and inserting ‘‘calendar year 2025’’, and
(3) by striking subparagraph (C).
26 USC 2010 (b) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to estates of decedents dying and gifts made after
December 31, 2025.
SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNTS AND MODIFICATION OF PHASE-
OUT THRESHOLDS.
(a) IN GENERAL.—Section 55(d)(4) is amended—
(1) in subparagraph (A), by striking ‘‘, and before January
1, 2026’’, and
(2) by striking ‘‘AND BEFORE 2026’’ in the heading.
(b) MODIFICATION OF INFLATION ADJUSTMENT.—Section
55(d)(4)(B) is amended—
(1) by striking ‘‘2018’’ and inserting ‘‘2018 (2026, in the
case of the $1,000,000 amount in subparagraph (A)(ii)(I))’’, and
(2) by striking ‘‘determined by substituting ‘calendar year
2017’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.’’
and inserting ‘‘determined by substituting for ‘calendar year
2016’ in subparagraph (A)(ii) thereof—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 163
‘‘(1) ‘calendar year 2017’, in the case of the $109,400 amount
in subparagraph (A)(i)(I) and the $70,300 amount in subpara-
graph (A)(i)(II), and
‘‘(2) ‘calendar year 2025’, in the case of the $1,000,000
amount in subparagraph (A)(ii)(I).’’.
(c) MODIFICATION OF PHASEOUT AMOUNT.—Section
55(d)(4)(A)(ii) is amended by striking ‘‘and’’ at the end of subclause
(II), and by adding at the end the following new subclause:
‘‘(IV) by substituting ‘50 percent’ for ‘25 per-
cent’, and’’.
(d) EFFECTIVE DATE.—The amendments made by this section 26 USC 55 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON
DEDUCTION FOR QUALIFIED RESIDENCE INTEREST.
(a) IN GENERAL.—Section 163(h)(3)(F) is amended—
(1) in clause (i)—
(A) by striking ‘‘, and before January 1, 2026’’,
(B) by redesignating subclauses (III) and (IV) as sub-
clauses (IV) and (V), respectively,
(C) by striking ‘‘subclause (III)’’ in subclause (V), as
so redesignated, and inserting ‘‘subclause (IV)’’, and
(D) by inserting after subclause (II) the following new
subclause:
‘‘(III) MORTGAGE INSURANCE PREMIUMS
TREATED AS INTEREST.—Clause (iv) of subpara-
graph (E) shall not apply.’’,
(2) by striking clause (ii) and redesignating clauses (iii)
and (iv) as clauses (ii) and (iii), respectively, and
(3) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 163 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CAS-
UALTY LOSS DEDUCTION.
(a) IN GENERAL.—Section 165(h)(5) is amended—
(1) in subparagraph (A), by striking ‘‘, and before January
1, 2026’’, and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) EXTENSION TO STATE DECLARED DISASTERS.—
(1) IN GENERAL.—Subparagraph (A) of section 165(h)(5),
as amended by subsection (a), is further amended by striking
‘‘(i)(5))’’ and inserting ‘‘(i)(5)) or a State declared disaster’’.
(2) EXCEPTION RELATED TO PERSONAL CASUALTY GAINS.—
Clause (i) of section 165(h)(5)(B) is amended by striking ‘‘(as
so defined)’’ and inserting ‘‘(as so defined) or a State declared
disaster’’.
(3) STATE DECLARED DISASTER.—Paragraph (5) of section
165(h) is amended by adding at the end the following new
subparagraph:
‘‘(C) STATE DECLARED DISASTER.—For purposes of this Definitions.
paragraph—
‘‘(i) IN GENERAL.—The term ‘State declared dis-
aster’ means, with respect to any State, any natural
catastrophe (including any hurricane, tornado, storm,
high water, wind-driven water, tidal wave, tsunami,
139 STAT. 164 PUBLIC LAW 119–21—JULY 4, 2025
earthquake, volcanic eruption, landslide, mudslide,
snowstorm, or drought), or, regardless of cause, any
fire, flood, or explosion, in any part of the State, which
in the determination of the Governor of such State
(or the Mayor, in the case of the District of Columbia)
and the Secretary causes damage of sufficient severity
and magnitude to warrant the application of the rules
of this section.
‘‘(ii) STATE.—The term ‘State’ includes the District
of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.’’.
26 USC 165 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUC-
TIONS OTHER THAN EDUCATOR EXPENSES.
(a) IN GENERAL.—Section 67(g) is amended—
(1) by striking ‘‘, and before January 1, 2026’’, and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) DEDUCTION FOR EDUCATOR EXPENSES.—
(1) IN GENERAL.—Section 67(b) is amended by striking
‘‘and’’ at the end of paragraph (11), by striking the period
at the end of paragraph (12) and inserting ‘‘, and’’, and by
adding at the end the following new paragraph:
‘‘(13) the deductions allowed by section 162 for educator
expenses (as defined in subsection (g)).’’.
(2) INCLUSION OF COACHES AND CERTAIN NONATHLETIC
INSTRUCTIONAL EQUIPMENT.—Section 67 is amended by redesig-
nating subsection (g), as amended by this section, as subsection
(h), and by inserting after subsection (f) the following new
section:
Definition. ‘‘(g) EDUCATOR EXPENSES.—For purposes of subsection (b)(13),
the term ‘educator expenses’ means expenses of a type which would
be described in section 62(a)(2)(D) if—
‘‘(1) such section were applied—
‘‘(A) without regard to the dollar limitation,
‘‘(B) without regard to ‘(other than nonathletic supplies
for courses of instruction in health or physical education)’
in clause (ii) thereof, and
‘‘(C) by substituting ‘as part of instructional activity’
for ‘in the classroom’ in clause (ii) thereof, and
‘‘(2) section 62(d)(1)(A) were applied by inserting ‘, inter-
scholastic sports administrator or coach,’ after ‘counselor’.’’.
26 USC 67 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.
(a) IN GENERAL.—Section 68 is amended to read as follows:
‘‘(a) IN GENERAL.—In the case of an individual, the amount
of the itemized deductions otherwise allowable for the taxable year
(determined without regard to this section) shall be reduced by
2⁄37 of the lesser of—
‘‘(1) such amount of itemized deductions, or
‘‘(2) so much of the taxable income of the taxpayer for
the taxable year (determined without regard to this section
and increased by such amount of itemized deductions) as
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 165
exceeds the dollar amount at which the 37 percent rate bracket
under section 1 begins with respect to the taxpayer.
‘‘(b) COORDINATION WITH OTHER LIMITATIONS.—This section Applicability.
shall be applied after the application of any other limitation on
the allowance of any itemized deduction.’’.
(b) LIMITATION NOT APPLICABLE TO DETERMINATION OF DEDUC-
TION FOR QUALIFIED BUSINESS INCOME.—
(1) IN GENERAL.—Section 199A(e)(1) is amended by
inserting ‘‘without regard to section 68 and’’ after ‘‘shall be
computed’’.
(2) PATRONS OF SPECIFIED AGRICULTURAL AND HORTI-
CULTURAL COOPERATIVES.—Section 199A(g)(2)(B) is amended by
inserting ‘‘section 68 or’’ after ‘‘without regard to’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 68 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPOR-
TATION FRINGE BENEFITS.
(a) IN GENERAL.—Section 132(f) is amended—
(1) by striking subparagraph (D) of paragraph (1),
(2) in paragraph (2), by inserting ‘‘and’’ at the end of
subparagraph (A), by striking ‘‘, and’’ at the end of subpara-
graph (B) and inserting a period, and by striking subparagraph
(C),
(3) by striking ‘‘(other than a qualified bicycle commuting
reimbursement)’’ in paragraph (4),
(4) by striking subparagraph (F) of paragraph (5), and
(5) by striking paragraph (8).
(b) INFLATION ADJUSTMENT.—Clause (ii) of section 132(f)(6)(A)
is amended by striking ‘‘1998’’ in clause (ii) and inserting ‘‘1997’’.
(c) COORDINATION WITH DISALLOWANCE OF CERTAIN
EXPENSES.—Subsection (l) of section 274 is amended—
(1) by striking ‘‘BENEFITS.—’’ and all that follows through
‘‘No deduction’’ and inserting ‘‘BENEFITS.—No deduction’’, and
(2) by striking paragraph (2).
(d) EFFECTIVE DATE.—The amendments made by this section 26 USC 132 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON
DEDUCTION AND EXCLUSION FOR MOVING EXPENSES.
(a) EXTENSION OF LIMITATION ON DEDUCTION.—Section 217(k)
is amended—
(1) by striking ‘‘, and before January 1, 2026’’, and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(b) ALLOWANCE OF DEDUCTION FOR MEMBERS OF THE INTEL-
LIGENCE COMMUNITY.—Section 217(k), as amended by subsection
(a), is further amended—
(1) by striking ‘‘2017.—Except in the case’’ and inserting
‘‘2017.—
‘‘(1) IN GENERAL.—Except in the case’’, and
(2) by adding at the end the following new paragraph:
‘‘(2) MEMBERS OF THE INTELLIGENCE COMMUNITY.—An
employee or new appointee of the intelligence community (as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003)) (other than a member of the Armed Forces of
the United States) who moves pursuant to a change in assign-
ment which requires relocation shall be treated for purposes
139 STAT. 166 PUBLIC LAW 119–21—JULY 4, 2025
of this section in the same manner as an individual to whom
subsection (g) applies.’’.
(c) EXTENSION OF LIMITATION ON EXCLUSION.—Section 132(g)(2)
is amended—
(1) by striking ‘‘, and before January 1, 2026’’, and
(2) by striking ‘‘2018 THROUGH 2025’’ in the heading and
inserting ‘‘BEGINNING AFTER 2017’’.
(d) ALLOWANCE OF EXCLUSION FOR MEMBERS OF THE INTEL-
LIGENCE COMMUNITY.—Section 132(g)(2) of the Internal Revenue
Code of 1986 is amended by inserting ‘‘, or an employee or new
appointee of the intelligence community (as defined in section 3
of the National Security Act of 1947 (50 U.S.C. 3003)) (other than
a member of the Armed Forces of the United States) who moves
pursuant to a change in assignment that requires relocation’’ after
‘‘change of station’’.
26 USC 132 note. (e) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON
WAGERING LOSSES.
(a) IN GENERAL.—Section 165 is amended by striking subsection
(d) and inserting the following:
‘‘(d) WAGERING LOSSES.—
‘‘(1) IN GENERAL.—For purposes of losses from wagering
transactions, the amount allowed as a deduction for any taxable
year—
‘‘(A) shall be equal to 90 percent of the amount of
such losses during such taxable year, and
‘‘(B) shall be allowed only to the extent of the gains
from such transactions during such taxable year.
Definition. ‘‘(2) SPECIAL RULE.—For purposes of paragraph (1), the
term ‘losses from wagering transactions’ includes any deduction
otherwise allowable under this chapter incurred in carrying
on any wagering transaction.’’.
26 USC 165 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITA-
TION ON CONTRIBUTIONS TO ABLE ACCOUNTS.
(a) IN GENERAL.—Section 529A(b)(2)(B) is amended—
(1) in clause (i), by inserting ‘‘(determined by substituting
‘1996’ for ‘1997’ in paragraph (2)(B) thereof)’’ after ‘‘section
2503(b)’’, and
(2) in clause (ii), by striking ‘‘before January 1, 2026’’.
Applicability. (b) EFFECTIVE DATES.—
26 USC 529A (1) IN GENERAL.—Except as otherwise provided in this sub-
note. section, the amendments made by this section shall apply to
contributions made after December 31, 2025.
(2) MODIFIED INFLATION ADJUSTMENT.—The amendment
made by subsection (a)(1) shall apply to taxable years beginning
after December 31, 2025.
SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT
ALLOWED FOR ABLE CONTRIBUTIONS.
(a) EXTENSION.—
(1) IN GENERAL.—Section 25B(d)(1) is amended to read
as follows:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 167
‘‘(1) IN GENERAL.—The term ‘qualified retirement savings Definition.
contributions’ means, with respect to any taxable year, the
sum of—
‘‘(A) the amount of contributions made by the eligible
individual during such taxable year to the ABLE account
(within the meaning of section 529A) of which such indi-
vidual is the designated beneficiary, and
‘‘(B) in the case of any taxable year beginning before
January 1, 2027—
‘‘(i) the amount of the qualified retirement con-
tributions (as defined in section 219(e)) made by the
eligible individual,
‘‘(ii) the amount of—
‘‘(I) any elective deferrals (as defined in section
402(g)(3)) of such individual, and
‘‘(II) any elective deferral of compensation by
such individual under an eligible deferred com-
pensation plan (as defined in section 457(b)) of
an eligible employer described in section
457(e)(1)(A), and
‘‘(iii) the amount of voluntary employee contribu-
tions by such individual to any qualified retirement
plan (as defined in section 4974(c)).’’.
(2) COORDINATION WITH SECURE 2.0 ACT OF 2022 AMEND- Applicability.
MENT.—Paragraph (1) of section 103(e) of the SECURE 2.0 26 USC 25B note.
Act of 2022 is repealed, and the Internal Revenue Code of 26 USC 25B.
1986 shall be applied and administered as though such para-
graph were never enacted.
(3) EFFECTIVE DATE.—The amendments and repeal made 26 USC 25B note.
by this subsection shall apply to taxable years ending after
December 31, 2025.
(b) INCREASE OF CREDIT AMOUNT.—
(1) IN GENERAL.—Section 25B(a) is amended by striking
‘‘$2,000’’ and inserting ‘‘$2,100’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 25B note.
section shall apply to taxable years beginning after December
31, 2026.
SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION
PROGRAMS TO ABLE ACCOUNTS PERMITTED.
(a) IN GENERAL.—Section 529(c)(3)(C)(i)(III) is amended by
striking ‘‘before January 1, 2026,’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 529 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS
PERFORMING SERVICES IN THE SINAI PENINSULA AND
ENHANCEMENT TO INCLUDE ADDITIONAL AREAS.
(a) TREATMENT MADE PERMANENT.—Section 11026(a) of Public
Law 115–97 is amended by striking ‘‘, with respect to the applicable 26 USC 112 note.
period’’.
(b) KENYA, MALI, BURKINA FASO, AND CHAD INCLUDED AS HAZ-
ARDOUS DUTY AREAS.—Section 11026(b) of Public Law 115–97 is
amended to read as follows:
‘‘(b) QUALIFIED HAZARDOUS DUTY AREA.—For purposes of this Definition.
section, the term ‘qualified hazardous duty area’ means each of
the following locations, but only during the period for which any
member of the Armed Forces of the United States is entitled to
139 STAT. 168 PUBLIC LAW 119–21—JULY 4, 2025
special pay under section 310 of title 37, United States Code
(relating to special pay; duty subject to hostile fire or imminent
danger), for services performed in such location:
‘‘(1) the Sinai Peninsula of Egypt.
‘‘(2) Kenya.
‘‘(3) Mali.
‘‘(4) Burkina Faso.
‘‘(5) Chad.’’.
(c) CONFORMING AMENDMENT.—Section 11026 of Public Law
115–97 is amended by striking subsections (c) and (d).
26 USC 112 note. (d) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2026.
SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM
GROSS INCOME OF STUDENT LOANS DISCHARGED ON
ACCOUNT OF DEATH OR DISABILITY.
(a) IN GENERAL.—Section 108(f)(5) is amended to read as fol-
lows:
‘‘(5) DISCHARGES ON ACCOUNT OF DEATH OR DISABILITY.—
‘‘(A) IN GENERAL.—In the case of an individual, gross
income does not include any amount which (but for this
subsection) would be includible in gross income for such
taxable year by reason of the discharge (in whole or in
part) of any loan described in subparagraph (B), if such
discharge was—
‘‘(i) pursuant to subsection (a) or (d) of section
437 of the Higher Education Act of 1965 or the parallel
benefit under part D of title IV of such Act (relating
to the repayment of loan liability),
‘‘(ii) pursuant to section 464(c)(1)(F) of such Act,
or
‘‘(iii) otherwise discharged on account of death or
total and permanent disability of the student.
‘‘(B) LOANS DISCHARGED.—A loan is described in this
subparagraph if such loan is—
‘‘(i) a student loan (as defined in paragraph (2)),
or
‘‘(ii) a private education loan (as defined in section
140(a) of the Consumer Credit Protection Act (15
U.S.C. 1650(a)).
‘‘(C) SOCIAL SECURITY NUMBER REQUIREMENT.—
‘‘(i) IN GENERAL.—Subparagraph (A) shall not
apply with respect to any discharge during any taxable
year unless the taxpayer includes the taxpayer’s social
security number on the return of tax for such taxable
year.
Definition. ‘‘(ii) SOCIAL SECURITY NUMBER.—For purposes of
this subparagraph, the term ‘social security number’
has the meaning given such term in section 24(h)(7).’’.
(b) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED
AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2), as
amended by this Act, is further amended by striking ‘‘and’’ at
the end of subparagraph (V), by striking the period at the end
of subparagraph (W) and inserting ‘‘, and’’, and by inserting after
subparagraph (W) the following new subparagraph:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 169
‘‘(X) an omission of a correct social security number
required under section 108(f)(5)(C) (relating to discharges
on account of death or disability).’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 108 note.
shall apply to discharges after December 31, 2025.
SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN
STATE AND LOCAL TAXES, ETC.
(a) IN GENERAL.—Section 164(b)(6) is amended—
(1) by striking ‘‘and before January 1, 2026’’, and
(2) by striking ‘‘$10,000 ($5,000 in the case of a married
individual filing a separate return)’’ and inserting ‘‘the
applicable limitation amount (half the applicable limitation
amount in the case of a married individual filing a separate
return)’’.
(b) APPLICABLE LIMITATION AMOUNT.—Section 164(b) is
amended by adding at the end the following new paragraph:
‘‘(7) APPLICABLE LIMITATION AMOUNT.— Definitions.
‘‘(A) IN GENERAL.—For purposes of paragraph (6), the
term ‘applicable limitation amount’ means—
‘‘(i) in the case of any taxable year beginning in
calendar year 2025, $40,000,
‘‘(ii) in the case of any taxable year beginning
in calendar year 2026, $40,400,
‘‘(iii) in the case of any taxable year beginning
after calendar year 2026 and before 2030, 101 percent
of the dollar amount in effect under this subparagraph
for taxable years beginning in the preceding calendar
year, and
‘‘(iv) in the case of any taxable year beginning
after calendar year 2029, $10,000.
‘‘(B) PHASEDOWN BASED ON MODIFIED ADJUSTED GROSS
INCOME.—
‘‘(i) IN GENERAL.—Except as provided in clause
(iii), in the case of any taxable year beginning before
January 1, 2030, the applicable limitation amount shall
be reduced by 30 percent of the excess (if any) of
the taxpayer’s modified adjusted gross income over
the threshold amount (half the threshold amount in
the case of a married individual filing a separate
return).
‘‘(ii) THRESHOLD AMOUNT.—For purposes of this
subparagraph, the term ‘threshold amount’ means—
‘‘(I) in the case of any taxable year beginning
in calendar year 2025, $500,000,
‘‘(II) in the case of any taxable year beginning
in calendar year 2026, $505,000, and
‘‘(III) in the case of any taxable year beginning
after calendar year 2026, 101 percent of the dollar
amount in effect under this subparagraph for tax-
able years beginning in the preceding calendar
year.
‘‘(iii) LIMITATION ON REDUCTION.—The reduction
under clause (i) shall not result in the applicable limita-
tion amount being less than $10,000.
‘‘(iv) MODIFIED ADJUSTED GROSS INCOME.—For pur-
poses of this paragraph, the term ‘modified adjusted
139 STAT. 170 PUBLIC LAW 119–21—JULY 4, 2025
gross income’ means adjusted gross income increased
by any amount excluded from gross income under sec-
tion 911, 931, or 933.’’.
26 USC 164 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2024.
CHAPTER 2—DELIVERING ON PRESIDENTIAL PRIOR-
ITIES TO PROVIDE NEW MIDDLE-CLASS TAX RELIEF
SEC. 70201. NO TAX ON TIPS.
(a) DEDUCTION ALLOWED.—Part VII of subchapter B of chapter
1 is amended by redesignating section 224 as section 225 and
by inserting after section 223 the following new section:
26 USC 224. ‘‘SEC. 224. QUALIFIED TIPS.
‘‘(a) IN GENERAL.—There shall be allowed as a deduction an
amount equal to the qualified tips received during the taxable
year that are included on statements furnished to the individual
pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or
6051(a)(18), or reported by the taxpayer on Form 4137 (or suc-
cessor).
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The amount allowed as a deduction
under this section for any taxable year shall not exceed $25,000.
‘‘(2) LIMITATION BASED ON ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The amount allowable as a deduc-
tion under subsection (a) (after application of paragraph
(1)) shall be reduced (but not below zero) by $100 for
each $1,000 by which the taxpayer’s modified adjusted
gross income exceeds $150,000 ($300,000 in the case of
a joint return).
Definition. ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.—For purposes
of this paragraph, the term ‘modified adjusted gross income’
means the adjusted gross income of the taxpayer for the
taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.
‘‘(c) TIPS RECEIVED IN COURSE OF TRADE OR BUSINESS.—In
the case of qualified tips received by an individual during any
taxable year in the course of a trade or business (other than
the trade or business of performing services as an employee) of
such individual, such qualified tips shall be taken into account
under subsection (a) only to the extent that the gross income for
the taxpayer from such trade or business for such taxable year
(including such qualified tips) exceeds the sum of the deductions
(other than the deduction allowed under this section) allocable
to the trade or business in which such qualified tips are received
by the individual for such taxable year.
Definitions. ‘‘(d) QUALIFIED TIPS.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified tips’ means cash
tips received by an individual in an occupation which custom-
arily and regularly received tips on or before December 31,
2024, as provided by the Secretary.
‘‘(2) EXCLUSIONS.—Such term shall not include any amount
received by an individual unless—
‘‘(A) such amount is paid voluntarily without any con-
sequence in the event of nonpayment, is not the subject
of negotiation, and is determined by the payor,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 171
‘‘(B) the trade or business in the course of which the
individual receives such amount is not a specified service
trade or business (as defined in section 199A(d)(2)), and
‘‘(C) such other requirements as may be established
by the Secretary in regulations or other guidance are satis-
fied.
For purposes of subparagraph (B), in the case of an individual
receiving tips in the trade or business of performing services
as an employee, such individual shall be treated as receiving
tips in the course of a trade or business which is a specified
service trade or business if the trade or business of the employer
is a specified service trade or business.
‘‘(3) CASH TIPS.—For purposes of paragraph (1), the term
‘cash tips’ includes tips received from customers that are paid
in cash or charged and, in the case of an employee, tips received
under any tip-sharing arrangement.
‘‘(e) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(1) IN GENERAL.—No deduction shall be allowed under
this section unless the taxpayer includes on the return of tax
for the taxable year such individual’s social security number.
‘‘(2) SOCIAL SECURITY NUMBER DEFINED.—For purposes of
paragraph (1), the term ‘social security number’ shall have
the meaning given such term in section 24(h)(7).
‘‘(f) MARRIED INDIVIDUALS.—If the taxpayer is a married indi- Applicability.
vidual (within the meaning of section 7703), this section shall
apply only if the taxpayer and the taxpayer’s spouse file a joint
return for the taxable year.
‘‘(g) REGULATIONS.—The Secretary shall prescribe such regula- Guidance.
tions or other guidance as may be necessary to prevent reclassifica-
tion of income as qualified tips, including regulations or other
guidance to prevent abuse of the deduction allowed by this section.
‘‘(h) TERMINATION.—No deduction shall be allowed under this
section for any taxable year beginning after December 31, 2028.’’.
(b) DEDUCTION ALLOWED TO NON-ITEMIZERS.—Section 63(b) is
amended by striking ‘‘and’’ at the end of paragraph (3), by striking
the period at the end of paragraph (4) and inserting ‘‘, and’’, and
by adding at the end the following new paragraph:
‘‘(5) the deduction provided in section 224.’’.
(c) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED
AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2), as
amended by the preceding provisions of this Act, is amended by
striking ‘‘and’’ at the end of subparagraph (W), by striking the
period at the end of subparagraph (X) and inserting ‘‘, and’’, and
by inserting after subparagraph (X) the following new subpara-
graph:
‘‘(Y) an omission of a correct social security number
required under section 224(e) (relating to deduction for
qualified tips).’’.
(d) EXCLUSION FROM QUALIFIED BUSINESS INCOME.—Section
199A(c)(4) is amended by striking ‘‘and’’ at the end of subparagraph
(B), by striking the period at the end of subparagraph (C) and
inserting ‘‘, and’’, and by adding at the end the following new
subparagraph:
‘‘(D) any amount with respect to which a deduction
is allowable to the taxpayer under section 224(a) for the
taxable year.’’.
(e) EXTENSION OF TIP CREDIT TO BEAUTY SERVICE BUSINESS.—
139 STAT. 172 PUBLIC LAW 119–21—JULY 4, 2025
(1) IN GENERAL.—Section 45B(b)(2) is amended to read
as follows:
‘‘(2) APPLICATION ONLY TO CERTAIN LINES OF BUSINESS.—
In applying paragraph (1) there shall be taken into account
only tips received from customers or clients in connection with
the following services:
‘‘(A) The providing, delivering, or serving of food or
beverages for consumption, if the tipping of employees
delivering or serving food or beverages by customers is
customary.
‘‘(B) The providing of any of the following services
to a customer or client if the tipping of employees providing
such services is customary:
‘‘(i) Barbering and hair care.
‘‘(ii) Nail care.
‘‘(iii) Esthetics.
‘‘(iv) Body and spa treatments.’’.
(2) CREDIT DETERMINED WITH RESPECT TO MINIMUM WAGE
IN EFFECT.—Section 45B(b)(1)(B) is amended—
(A) by striking ‘‘as in effect on January 1, 2007, and’’,
and
(B) by inserting ‘‘, and in the case of food or beverage
establishments, as in effect on January 1, 2007’’ after ‘‘with-
out regard to section 3(m) of such Act’’.
(f) REPORTING REQUIREMENTS.—
(1) RETURNS FOR PAYMENTS MADE IN THE COURSE OF A
TRADE OR BUSINESS.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section
6041(a) is amended by inserting ‘‘(including a separate
accounting of any such amounts reasonably designated as
cash tips and the occupation described in section 224(d)(1)
of the person receiving such tips)’’ after ‘‘such gains, profits,
and income’’.
(B) STATEMENT FURNISHED TO PAYEE.—Section 6041(d)
is amended by striking ‘‘and’’ at the end of paragraph
(1), by striking the period at the end of paragraph (2)
and inserting ‘‘, and’’, and by inserting after paragraph
(2) the following new paragraph:
‘‘(3) in the case of compensation to non-employees, the
portion of payments that have been reasonably designated as
cash tips and the occupation described in section 224(d)(1)
of the person receiving such tips.’’.
(2) RETURNS FOR PAYMENTS MADE FOR SERVICES AND DIRECT
SALES.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section
6041A(a) is amended by inserting ‘‘(including a separate
accounting of any such amounts reasonably designated as
cash tips and the occupation described in section 224(d)(1)
of the person receiving such tips)’’ after ‘‘amount of such
payments’’.
(B) STATEMENT FURNISHED TO PAYEE.—Section
6041A(e) is amended by striking ‘‘and’’ at the end of para-
graph (1), by striking the period at the end of paragraph
(2) and inserting ‘‘, and’’, and by inserting after paragraph
(2) the following new paragraph:
‘‘(3) in the case of subsection (a), the portion of payments
that have been reasonably designated as cash tips and the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 173
occupation described in section 224(d)(1) of the person receiving
such tips.’’.
(3) RETURNS RELATING TO THIRD PARTY SETTLEMENT
ORGANIZATIONS.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section
6050W(a) is amended by striking ‘‘and’’ at the end of para-
graph (1), by striking the period at the end of paragraph
(2) and inserting ‘‘and’’, and by adding at the end the
following new paragraph:
‘‘(3) in the case of a third party settlement organization,
the portion of reportable payment transactions that have been
reasonably designated by payors as cash tips and the occupation
described in section 224(d)(1) of the person receiving such tips.’’.
(B) STATEMENT FURNISHED TO PAYEE.—Section
6050W(f)(2) is amended by inserting ‘‘(including a separate
accounting of any such amounts that have been reasonably
designated by payors as cash tips and the occupation
described in section 224(d)(1) of the person receiving such
tips)’’ after ‘‘reportable payment transactions’’.
(4) RETURNS RELATED TO WAGES.—Section 6051(a) is
amended by striking ‘‘and’’ at the end of paragraph (16), by
striking the period at the end of paragraph (17) and inserting
‘‘, and’’, and by inserting after paragraph (17) the following
new paragraph:
‘‘(18) the total amount of cash tips reported by the employee
under section 6053(a) and the occupation described in section
224(d)(1) such person.’’.
(g) CLERICAL AMENDMENT.—The table of sections for part VII
of subchapter B of chapter 1 is amended by redesignating the 26 USC
item relating to section 224 as relating to section 225 and by prec. 211.
inserting after the item relating to section 223 the following new
item:
‘‘Sec. 224. Qualified tips.’’.
(h) PUBLISHED LIST OF OCCUPATIONS TRADITIONALLY RECEIVING
TIPS.—Not later than 90 days after the date of the enactment Deadline.
of this Act, the Secretary of the Treasury (or the Secretary’s dele- 26 USC 224 note.
gate) shall publish a list of occupations which customarily and
regularly received tips on or before December 31, 2024, for purposes
of section 224(d)(1) of the Internal Revenue Code of 1986 (as added
by subsection (a)).
(i) WITHHOLDING.—The Secretary of the Treasury (or the Sec- Procedures.
retary’s delegate) shall modify the procedures prescribed under Effective date.
section 3402(a) of the Internal Revenue Code of 1986 for taxable 26 USC 3402
note.
years beginning after December 31, 2025, to take into account
the deduction allowed under section 224 of such Code (as added
by this Act).
(j) EFFECTIVE DATE.—The amendments made by this section 26 USC 45B
shall apply to taxable years beginning after December 31, 2024. note.
(k) TRANSITION RULE.—In the case of any cash tips required Time periods.
to be reported for periods before January 1, 2026, persons required 26 USC 6041
to file returns or statements under section 6041(a), 6041(d)(3), note.
6041A(a), 6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal
Revenue Code of 1986 (as amended by this section) may approxi-
mate a separate accounting of amounts designated as cash tips
by any reasonable method specified by the Secretary.
139 STAT. 174 PUBLIC LAW 119–21—JULY 4, 2025
SEC. 70202. NO TAX ON OVERTIME.
(a) DEDUCTION ALLOWED.—Part VII of subchapter B of chapter
1, as amended by the preceding provisions of this Act, is amended
by redesignating section 225 as section 226 and by inserting after
section 224 the following new section:
26 USC 225. ‘‘SEC. 225. QUALIFIED OVERTIME COMPENSATION.
Statements. ‘‘(a) IN GENERAL.—There shall be allowed as a deduction an
amount equal to the qualified overtime compensation received
during the taxable year and included on statements furnished to
the individual pursuant to section 6041(d)(4) or 6051(a)(19).
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The amount allowed as a deduction
under this section for any taxable year shall not exceed $12,500
($25,000 in the case of a joint return).
‘‘(2) LIMITATION BASED ON ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The amount allowable as a deduc-
tion under subsection (a) (after application of paragraph
(1)) shall be reduced (but not below zero) by $100 for
each $1,000 by which the taxpayer’s modified adjusted
gross income exceeds $150,000 ($300,000 in the case of
a joint return).
Definition. ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.—For purposes
of this paragraph, the term ‘modified adjusted gross income’
means the adjusted gross income of the taxpayer for the
taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.
‘‘(c) QUALIFIED OVERTIME COMPENSATION.—
Definition. ‘‘(1) IN GENERAL.—For purposes of this section, the term
‘qualified overtime compensation’ means overtime compensation
paid to an individual required under section 7 of the Fair
Labor Standards Act of 1938 that is in excess of the regular
rate (as used in such section) at which such individual is
employed.
‘‘(2) EXCLUSIONS.—Such term shall not include any quali-
fied tip (as defined in section 224(d)).
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(1) IN GENERAL.—No deduction shall be allowed under
this section unless the taxpayer includes on the return of tax
for the taxable year such individual’s social security number.
‘‘(2) SOCIAL SECURITY NUMBER DEFINED.—For purposes of
paragraph (1), the term ‘social security number’ shall have
the meaning given such term in section 24(h)(7).
Applicability. ‘‘(e) MARRIED INDIVIDUALS.—If the taxpayer is a married indi-
vidual (within the meaning of section 7703), this section shall
apply only if the taxpayer and the taxpayer’s spouse file a joint
return for the taxable year.
Guidance. ‘‘(f) REGULATIONS.—The Secretary shall issue such regulations
or other guidance as may be necessary or appropriate to carry
out the purposes of this section, including regulations or other
guidance to prevent abuse of the deduction allowed by this section.
‘‘(g) TERMINATION.—No deduction shall be allowed under this
section for any taxable year beginning after December 31, 2028.’’.
(b) DEDUCTION ALLOWED TO NON-ITEMIZERS.—Section 63(b), as
amended by the preceding provisions of this Act, is amended by
striking ‘‘and’’ at the end of paragraph (4), by striking the period
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 175
at the end of paragraph (5) and inserting ‘‘, and’’, and by adding
at the end the following new paragraph:
‘‘(6) the deduction provided in section 225.’’.
(c) REPORTING.—
(1) REQUIREMENT TO INCLUDE OVERTIME COMPENSATION ON
W-2.—Section 6051(a), as amended by the preceding provision
of this Act, is amended by striking ‘‘and’’ at the end of para-
graph (17), by striking the period at the end of paragraph
(18) and inserting ‘‘, and’’, and by inserting after paragraph
(18) the following new paragraph:
‘‘(19) the total amount of qualified overtime compensation
(as defined in section 225(c)).’’.
(2) PAYMENTS TO PERSONS NOT TREATED AS EMPLOYEES
UNDER TAX LAWS.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section
6041(a), as amended by section 70201(e)(1)(A), is amended
by inserting ‘‘and a separate accounting of any amount
of qualified overtime compensation (as defined in section
225(c))’’ after ‘‘occupation of the person receiving such tips’’.
(B) STATEMENT FURNISHED TO PAYEE.—Section 6041(d),
as amended by section 70201(e)(1)(B), is amended by
striking ‘‘and’’ at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting ‘‘,
and’’, and by inserting after paragraph (3) the following
new paragraph:
‘‘(4) the portion of payments that are qualified overtime
compensation (as defined in section 225(c)).’’.
(d) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED
AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2), as
amended by the preceding provisions of this Act, is amended by
striking ‘‘and’’ at the end of subparagraph (X), by striking the
period at the end of subparagraph (Y) and inserting ‘‘, and’’, and
by inserting after subparagraph (Y) the following new subpara-
graph:
‘‘(Z) an omission of a correct social security number
required under section 225(d) (relating to deduction for
qualified overtime).’’.
(e) CLERICAL AMENDMENT.—The table of sections for part VII
of subchapter B of chapter 1, as amended by the preceding provi-
sions of this Act, is amended by redesignating the item relating 26 USC
to section 225 as an item relating to section 226 and by inserting prec. 211.
after the item relating to section 224 the following new item:
‘‘Sec. 225. Qualified overtime compensation.’’.
(f) WITHHOLDING.—The Secretary of the Treasury (or the Sec- Procedures.
retary’s delegate) shall modify the procedures prescribed under Effective date.
section 3402(a) of the Internal Revenue Code of 1986 for taxable 26 USC 3402
note.
years beginning after December 31, 2025, to take into account
the deduction allowed under section 225 of such Code (as added
by this Act).
(g) EFFECTIVE DATE.—The amendments made by this section 26 USC 63 note.
shall apply to taxable years beginning after December 31, 2024.
(h) TRANSITION RULE.—In the case of qualified overtime com- Time periods.
pensation required to be reported for periods before January 1, 26 USC 6041
2026, persons required to file returns or statements under section note.
6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code
of 1986 (as amended by this section) may approximate a separate
139 STAT. 176 PUBLIC LAW 119–21—JULY 4, 2025
accounting of amounts designated as qualified overtime compensa-
tion by any reasonable method specified by the Secretary.
SEC. 70203. NO TAX ON CAR LOAN INTEREST.
(a) IN GENERAL.—Section 163(h) is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph
(3) the following new paragraph:
Definitions. ‘‘(4) SPECIAL RULES FOR TAXABLE YEARS 2025 THROUGH 2028
RELATING TO QUALIFIED PASSENGER VEHICLE LOAN INTEREST.—
‘‘(A) IN GENERAL.—In the case of taxable years begin-
ning after December 31, 2024, and before January 1, 2029,
for purposes of this subsection the term ‘personal interest’
shall not include qualified passenger vehicle loan interest.
‘‘(B) QUALIFIED PASSENGER VEHICLE LOAN INTEREST
DEFINED.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
the term ‘qualified passenger vehicle loan interest’
means any interest which is paid or accrued during
the taxable year on indebtedness incurred by the tax-
payer after December 31, 2024, for the purchase of,
and that is secured by a first lien on, an applicable
passenger vehicle for personal use.
‘‘(ii) EXCEPTIONS.—Such term shall not include any
amount paid or incurred on any of the following:
‘‘(I) A loan to finance fleet sales.
‘‘(II) A loan incurred for the purchase of a
commercial vehicle that is not used for personal
purposes.
‘‘(III) Any lease financing.
‘‘(IV) A loan to finance the purchase of a
vehicle with a salvage title.
‘‘(V) A loan to finance the purchase of a vehicle
intended to be used for scrap or parts.
‘‘(iii) VIN REQUIREMENT.—Interest shall not be
treated as qualified passenger vehicle loan interest
under this paragraph unless the taxpayer includes the
vehicle identification number of the applicable pas-
senger vehicle described in clause (i) on the return
of tax for the taxable year.
‘‘(C) LIMITATIONS.—
‘‘(i) DOLLAR LIMIT.—The amount of interest taken
into account by a taxpayer under subparagraph (B)
for any taxable year shall not exceed $10,000.
‘‘(ii) LIMITATION BASED ON MODIFIED ADJUSTED
GROSS INCOME.—
‘‘(I) IN GENERAL.—The amount which is other-
wise allowable as a deduction under subsection
(a) as qualified passenger vehicle loan interest
(determined without regard to this clause and after
the application of clause (i)) shall be reduced (but
not below zero) by $200 for each $1,000 (or portion
thereof) by which the modified adjusted gross
income of the taxpayer for the taxable year exceeds
$100,000 ($200,000 in the case of a joint return).
‘‘(II) MODIFIED ADJUSTED GROSS INCOME.—For
purposes of this clause, the term ‘modified adjusted
gross income’ means the adjusted gross income
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 177
of the taxpayer for the taxable year increased by
any amount excluded from gross income under
section 911, 931, or 933.
‘‘(D) APPLICABLE PASSENGER VEHICLE.—The term
‘applicable passenger vehicle’ means any vehicle—
‘‘(i) the original use of which commences with the
taxpayer,
‘‘(ii) which is manufactured primarily for use on
public streets, roads, and highways (not including a
vehicle operated exclusively on a rail or rails),
‘‘(iii) which has at least 2 wheels,
‘‘(iv) which is a car, minivan, van, sport utility
vehicle, pickup truck, or motorcycle,
‘‘(v) which is treated as a motor vehicle for pur-
poses of title II of the Clean Air Act, and
‘‘(vi) which has a gross vehicle weight rating of
less than 14,000 pounds.
Such term shall not include any vehicle the final assembly
of which did not occur within the United States.
‘‘(E) OTHER DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this paragraph—
‘‘(i) FINAL ASSEMBLY.—For purposes of subpara-
graph (D), the term ‘final assembly’ means the process
by which a manufacturer produces a vehicle at, or
through the use of, a plant, factory, or other place
from which the vehicle is delivered to a dealer with
all component parts necessary for the mechanical oper-
ation of the vehicle included with the vehicle, whether
or not the component parts are permanently installed
in or on the vehicle.
‘‘(ii) TREATMENT OF REFINANCING.—Indebtedness
described in subparagraph (B) shall include indebted-
ness that results from refinancing any indebtedness
described in such subparagraph, and that is secured
by a first lien on the applicable passenger vehicle with
respect to which the refinanced indebtedness was
incurred, but only to the extent the amount of such
resulting indebtedness does not exceed the amount
of such refinanced indebtedness.
‘‘(iii) RELATED PARTIES.—Indebtedness described in
subparagraph (B) shall not include any indebtedness
owed to a person who is related (within the meaning
of section 267(b) or 707(b)(1)) to the taxpayer.’’.
(b) DEDUCTION ALLOWED TO NON-ITEMIZERS.—Section 63(b), as
amended by the preceding provisions of this Act, is amended by
striking ‘‘and’’ at the end of paragraph (5), by striking the period
at the end of paragraph (6) and inserting ‘‘and’’, and by adding
at the end the following new paragraph:
‘‘(7) so much of the deduction allowed by section 163(a)
as is attributable to the exception under section 163(h)(4)(A).’’.
(c) REPORTING.—
(1) IN GENERAL.—Subpart B of part III of subchapter A
of chapter 61 is amended by adding at the end the following
new section:
139 STAT. 178 PUBLIC LAW 119–21—JULY 4, 2025
26 USC 6050AA. ‘‘SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER
VEHICLE LOAN INTEREST RECEIVED IN TRADE OR
BUSINESS FROM INDIVIDUALS.
‘‘(a) IN GENERAL.—Any person—
‘‘(1) who is engaged in a trade or business, and
‘‘(2) who, in the course of such trade or business, receives
from any individual interest aggregating $600 or more for any
calendar year on a specified passenger vehicle loan,
shall make the return described in subsection (b) with respect
to each individual from whom such interest was received at such
time as the Secretary may provide.
‘‘(b) FORM AND MANNER OF RETURNS.—A return is described
in this subsection if such return—
‘‘(1) is in such form as the Secretary may prescribe, and
‘‘(2) contains—
‘‘(A) the name and address of the individual from whom
the interest described in subsection (a)(2) was received,
‘‘(B) the amount of such interest received for the cal-
endar year,
‘‘(C) the amount of outstanding principal on the speci-
fied passenger vehicle loan as of the beginning of such
calendar year,
‘‘(D) the date of the origination of such loan,
‘‘(E) the year, make, model, and vehicle identification
number of the applicable passenger vehicle which secures
such loan (or such other description of such vehicle as
the Secretary may prescribe), and
‘‘(F) such other information as the Secretary may pre-
scribe.
‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVIDUALS WITH
RESPECT TO WHOM INFORMATION IS REQUIRED.—Every person
required to make a return under subsection (a) shall furnish to
each individual whose name is required to be set forth in such
return a written statement showing—
‘‘(1) the name, address, and phone number of the informa-
tion contact of the person required to make such return, and
‘‘(2) the information described in subparagraphs (B), (C),
(D), and (E) of subsection (b)(2) with respect to such individual
(and such information as is described in subsection (b)(2)(F)
with respect to such individual as the Secretary may provide
for purposes of this subsection).
Deadline. The written statement required under the preceding sentence shall
be furnished on or before January 31 of the year following the
calendar year for which the return under subsection (a) was
required to be made.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) IN GENERAL.—Terms used in this section which are
also used in paragraph (4) of section 163(h) shall have the
same meaning as when used in such paragraph.
‘‘(2) SPECIFIED PASSENGER VEHICLE LOAN.—The term ‘speci-
fied passenger vehicle loan’ means the indebtedness described
in section 163(h)(4)(B) with respect to any applicable passenger
vehicle.
Guidance. ‘‘(e) REGULATIONS.—The Secretary shall issue such regulations
or other guidance as may be necessary or appropriate to carry
out the purposes of this section, including regulations or other
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 179
guidance to prevent the duplicate reporting of information under
this section.
‘‘(f) APPLICABILITY.—No return shall be required under this
section for any period to which section 163(h)(4) does not apply.’’.
(2) PENALTIES.—Section 6724(d) is amended—
(A) in paragraph (1)(B), by striking ‘‘or’’ at the end
of clause (xxvii), by striking ‘‘and’’ at the end of clause
(xxviii) and inserting ‘‘or’’, and by adding at the end the
following new clause:
‘‘(xxix) section 6050AA(a) (relating to returns
relating to applicable passenger vehicle loan interest
received in trade or business from individuals),’’, and
(B) in paragraph (2), by striking ‘‘or’’ at the end of
subparagraph (KK), by striking the period at the end of
subparagraph (LL) and inserting ‘‘, or’’, and by inserting
after subparagraph (LL) the following new subparagraph:
‘‘(MM) section 6050AA(c) (relating to statements
relating to applicable passenger vehicle loan interest
received in trade or business from individuals).’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 56(e)(1)(B) is amended by striking ‘‘section
163(h)(4)’’ and inserting ‘‘section 163(h)(5)’’.
(2) The table of sections for subpart B of part III of sub-
chapter A of chapter 61 is amended by adding at the end 26 USC
the following new item: prec. 6041.
‘‘Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest re-
ceived in trade or business from individuals.’’.
(e) EFFECTIVE DATE.—The amendments made by this section 26 USC 56 note.
shall apply to indebtedness incurred after December 31, 2024.
SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM.
(a) TRUMP ACCOUNTS.—
(1) IN GENERAL.—Subchapter F of chapter 1 is amended
by adding at the end the following new part:
‘‘PART IX—TRUMP ACCOUNTS 26 USC
prec. 530A.
‘‘Sec. 530A. Trump accounts.
‘‘SEC. 530A. TRUMP ACCOUNTS. Definitions.
26 USC 530A.
‘‘(a) GENERAL RULE.—Except as provided in this section or
under regulations or guidance established by the Secretary, a
Trump account shall be treated for purposes of this title in the
same manner as an individual retirement account under section
408(a).
‘‘(b) TRUMP ACCOUNT.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘Trump account’ means an
individual retirement account (as defined in section 408(a))
which is not designated as a Roth IRA and which meets the
following requirements:
‘‘(A) The account—
‘‘(i) is created or organized by the Secretary for
the exclusive benefit of an eligible individual or such
eligible individual’s beneficiaries, or
‘‘(ii) is—
‘‘(I) created or organized in the United States
for the exclusive benefit of an individual who has
139 STAT. 180 PUBLIC LAW 119–21—JULY 4, 2025
not attained the age of 18 before the end of the
calendar year, or such individual’s beneficiaries,
and
‘‘(II) funded by a qualified rollover contribu-
tion.
‘‘(B) The account is designated (in such manner as
the Secretary shall prescribe) at the time of the establish-
ment of the account as a Trump account.
‘‘(C) The written governing instrument creating the
account meets the following requirements:
‘‘(i) No contribution will be accepted—
‘‘(I) before the date that is 12 months after
the date of the enactment of this section, or
‘‘(II) in the case of a contribution made in
any calendar year before the calendar year in
which the account beneficiary attains age 18, if
such contribution would result in aggregate con-
tributions (other than exempt contributions) for
such calendar year in excess of the contribution
limit specified in subsection (c)(2)(A).
‘‘(ii) Except as provided in subsection (d), no dis-
tribution will be allowed before the first day of the
calendar year in which the account beneficiary attains
age 18.
‘‘(iii) No part of the account funds will be invested
in any asset other than an eligible investment during
any period before the first day of the calendar year
in which the account beneficiary attains age 18.
‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’
means any individual—
‘‘(A) who has not attained the age of 18 before the
close of the calendar year in which the election under
subparagraph (C) is made,
‘‘(B) for whom a social security number (within the
meaning of section 24(h)(7)) has been issued before the
date on which an election under subsection (C) is made,
and
‘‘(C) for whom—
‘‘(i) an election is made under this subparagraph
by the Secretary if the Secretary determines (based
on information available to the Secretary from tax
returns or otherwise) that such individual meets the
requirements of subparagraphs (A) and (B) and no
prior election has been made for such individual under
clause (ii), or
‘‘(ii) an election is made under this subparagraph
by a person other than the Secretary (at such time
and in such manner as the Secretary may prescribe)
for the establishment of a Trump account if no prior
election has been made for such individual under
clause (i).
‘‘(3) ELIGIBLE INVESTMENT.—
‘‘(A) IN GENERAL.—The term ‘eligible investment’
means any mutual fund or exchange traded fund which—
‘‘(i) tracks the returns of a qualified index,
‘‘(ii) does not use leverage,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 181
‘‘(iii) does not have annual fees and expenses of
more than 0.1 percent of the balance of the investment
in the fund, and
‘‘(iv) meets such other criteria as the Secretary
determines appropriate for purposes of this section.
‘‘(B) QUALIFIED INDEX.—The term ‘qualified index’
means—
‘‘(i) the Standard and Poor’s 500 stock market
index, or
‘‘(ii) any other index—
‘‘(I) which is comprised of equity investments
in primarily United States companies, and
‘‘(II) for which regulated futures contracts (as
defined in section 1256(g)(1)) are traded on a quali-
fied board or exchange (as defined in section
1256(g)(7)).
Such term shall not include any industry or sector-
specific index, but may include an index based on
market capitalization.
‘‘(4) ACCOUNT BENEFICIARY.—The term ‘account beneficiary’
means the individual on whose behalf the Trump account was
established.
‘‘(c) TREATMENT OF CONTRIBUTIONS.—
‘‘(1) NO DEDUCTION ALLOWED.—No deduction shall be
allowed under section 219 for any contribution which is made
before the first day of the calendar year in which the account
beneficiary attains age 18.
‘‘(2) CONTRIBUTION LIMIT.—In the case of any contribution
made before the calendar year in which the account beneficiary
attains age 18—
‘‘(A) IN GENERAL.—The aggregate amount of contribu-
tions (other than exempt contributions) for such calendar
year shall not exceed $5,000.
‘‘(B) EXEMPT CONTRIBUTION.—For purposes of this
paragraph, the term ‘exempt contribution’ means—
‘‘(i) a qualified rollover contribution,
‘‘(ii) any qualified general contribution, or
‘‘(iii) any contribution provided under section 6434.
‘‘(C) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of any taxable year
after 2027, the $5,000 amount under subparagraph
(A) shall be increased by an amount equal to—
‘‘(I) such dollar amount, multiplied by
‘‘(II) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by sub-
stituting ‘calendar year 2026’ for ‘calendar year
2016’ in subparagraph (A)(ii) thereof.
‘‘(ii) ROUNDING.—If any increase under this
subparagraph is not a multiple of $100, such amount
shall be rounded to the next lowest multiple of $100.
‘‘(3) TIMING OF CONTRIBUTIONS.—Section 219(f)(3) shall not
apply to any contribution made to a Trump account for any
taxable year ending before the calendar year in which the
account beneficiary attains age 18.
‘‘(d) DISTRIBUTIONS.—
139 STAT. 182 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subsection, no distribution shall be allowed before the first
day of the calendar year in which the account beneficiary
attains age 18.
‘‘(2) TAX TREATMENT OF ALLOWABLE DISTRIBUTIONS.—For
purposes of applying section 72 to any amount distributed
from a Trump account, the investment in the contract shall
not include—
‘‘(A) any qualified general contribution,
‘‘(B) any contribution provided under section 6434, and
‘‘(C) the amount of any contribution which is excluded
from gross income under section 128.
‘‘(3) QUALIFIED ROLLOVER CONTRIBUTIONS.—Paragraph (1)
shall not apply to any distribution which is a qualified rollover
contribution and the amount of such distribution shall not
be included in the gross income of the beneficiary.
‘‘(4) QUALIFIED ABLE ROLLOVER CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—Paragraph (1) shall not apply to
any distribution which is a qualified ABLE rollover con-
tribution and the amount of such distribution shall not
be included in the gross income of the beneficiary.
‘‘(B) QUALIFIED ABLE ROLLOVER CONTRIBUTION.—For
purposes of this section, the term ‘qualified ABLE rollover
contribution’ means an amount which is paid during the
calendar year in which the account beneficiary attains age
17 in a direct trustee-to-trustee transfer from a Trump
account maintained for the benefit of the account bene-
ficiary to an ABLE account (as defined in section
529A(e)(6)) for the benefit of the such account beneficiary,
but only if the amount of such payment is equal to the
entire balance of the Trump account from which the pay-
ment is made.
‘‘(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS.—In the case
of any contribution which is made before the calendar year
in which the account beneficiary attains age 18 and which
is in excess of the limitation in effect under subsection (c)(2)(A)
for the calendar year—
‘‘(A) paragraph (1) shall not apply to the distribution
of such excess,
‘‘(B) the amount of such distribution shall not be
included in gross income of the account beneficiary, and
‘‘(C) the tax imposed by this chapter on the distributee
for the taxable year in which the distribution is made
shall be increased by 100 percent of the amount of net
income attributable to such excess (determined without
regard to subparagraph (B)).
‘‘(6) TREATMENT OF DEATH OF ACCOUNT BENEFICIARY.—If,
by reason of the death of the account beneficiary before the
first day of the calendar year in which the account beneficiary
attains age 18, any person acquires the account beneficiary’s
interest in the Trump account—
‘‘(A) paragraph (1) shall not apply,
‘‘(B) such account shall cease to be a Trump account
as of the date of death, and
‘‘(C) an amount equal to the fair market value of the
assets (reduced by the investment in the contract) in such
account on such date shall—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 183
‘‘(i) if such person is not the estate of such bene-
ficiary, be includible in such person’s gross income
for the taxable year which includes such date, or
‘‘(ii) if such person is the estate of such beneficiary,
be includible in such beneficiary’s gross income for
the last taxable year of such beneficiary.
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For purposes of this
section, the term ‘qualified rollover contribution’ means an amount
which is paid in a direct trustee-to-trustee transfer from a Trump
account maintained for the benefit of the account beneficiary to
a Trump account maintained for such beneficiary, but only if the
amount of such payment is equal to the entire balance of the
Trump account from which the payment is made.
‘‘(f) QUALIFIED GENERAL CONTRIBUTION.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified general contribution’
means any contribution which—
‘‘(A) is made by the Secretary pursuant to a general
funding contribution,
‘‘(B) is made to the Trump account of an account bene-
ficiary in the qualified class of account beneficiaries speci-
fied in the general funding contribution, and
‘‘(C) is in an amount which is equal to the ratio of—
‘‘(i) the amount of such general funding contribu-
tion, to
‘‘(ii) the number of account beneficiaries in such
qualified class.
‘‘(2) GENERAL FUNDING CONTRIBUTION.—The term ‘general
funding contribution’ means a contribution which—
‘‘(A) is made by—
‘‘(i) an entity described in section 170(c)(1) (other
than a possession of the United States or a political
subdivision thereof) or an Indian tribal government,
or
‘‘(ii) an organization described in section 501(c)(3)
and exempt from tax under section 501(a), and
‘‘(B) which specifies a qualified class of account bene-
ficiaries to whom such contribution is to be distributed.
‘‘(3) QUALIFIED CLASS.—
‘‘(A) IN GENERAL.—The term ‘qualified class’ means
any of the following:
‘‘(i) All account beneficiaries who have not attained
the age of 18 before the close of the calendar year
in which the contribution is made.
‘‘(ii) All account beneficiaries who have not
attained the age of 18 before the close of the calendar
year in which the contribution is made and who reside
in one or more States or other qualified geographic
areas specified by the terms of the general funding
contribution.
‘‘(iii) All account beneficiaries who have not
attained the age of 18 before the close of the calendar
year in which the contribution is made and who were
born in one or more calendar years specified by the
terms of the general funding contribution.
‘‘(B) QUALIFIED GEOGRAPHIC AREA.—The term ‘qualified
geographic area’ means any geographic area in which not
139 STAT. 184 PUBLIC LAW 119–21—JULY 4, 2025
less than 5,000 account beneficiaries reside and which is
designated by the Secretary as a qualified geographic area
under this subparagraph.
‘‘(g) TRUSTEE SELECTION.—In the case of any Trump account
created or organized by the Secretary, the Secretary shall take
into account the following criteria in selecting the trustee:
‘‘(1) The history of reliability and regulatory compliance
of the trustee.
‘‘(2) The customer service experience of the trustee.
‘‘(3) The costs imposed by the trustee on the account or
the account beneficiary.
‘‘(h) OTHER SPECIAL RULES AND COORDINATION WITH INDI-
VIDUAL RETIREMENT ACCOUNT RULES.—
‘‘(1) IN GENERAL.—The rules of subsections (k) and (p)
of section 408 shall not apply to a Trump account, and the
rules of subsections (d) and (i) of section 408 shall not apply
to a Trump account for any taxable year beginning before
the calendar year in which the account beneficiary attains
age 18.
‘‘(2) CUSTODIAL ACCOUNTS.—In the case of a Trump account,
section 408(h) shall be applied by substituting ‘a Trump account
described in section 530A(b)(1)’ for ‘an individual retirement
account described in subsection (a)’.
‘‘(3) CONTRIBUTIONS.—In the case of any taxable year begin-
ning before the first day of the calendar year in which the
account beneficiary attains age 18, a contribution to a Trump
account shall not be taken into account in applying any con-
tribution limit to any individual retirement plan other than
a Trump account.
‘‘(4) DISTRIBUTIONS.—Section 408(d)(2) shall be applied
separately with respect to Trump Accounts and other individual
retirement plans.
‘‘(5) EXCESS CONTRIBUTIONS.—For purposes of applying sec-
tion 4973(b) to a Trump account for any taxable year beginning
before the first day of the calendar year in which the account
beneficiary attains age 18, the term ‘excess contributions’ means
the sum of—
‘‘(A) the amount by which the amount contributed to
the account for the calendar year in which taxable year
begins exceeds the amount permitted to be contributed
to the account under subsection (c)(2), and
‘‘(B) the amount determined under this paragraph for
the preceding taxable year.
For purposes of this paragraph, the excess contributions for
a taxable year are reduced by the distributions to which sub-
section (d)(5) applies that are made during the taxable year
or by the date prescribed by law (including extensions of time)
for filing the account beneficiary’s return for the taxable year.
‘‘(i) REPORTS.—
‘‘(1) IN GENERAL.—The trustee of a Trump account shall
make such reports regarding such account to the Secretary
and to the beneficiary of the account at such time and in
such manner as may be required by the Secretary. Such reports
shall include information with respect to—
‘‘(A) contributions (including the amount and source
of any contribution in excess of $25 made from a person
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 185
other than the Secretary, the account beneficiary, or the
parent or legal guardian of the account beneficiary),
‘‘(B) distributions (including distributions which are
qualified rollover contributions),
‘‘(C) the fair market value of the account,
‘‘(D) the investment in the contract with respect to
such account, and
‘‘(E) such other matters as the Secretary may require.
‘‘(2) QUALIFIED ROLLOVER CONTRIBUTIONS.—Not later than
30 days after the date of any qualified rollover contribution,
the trustee of the Trump account to which the contribution
was made shall make a report to the Secretary. Such report
shall include—
‘‘(A) the name, address, and social security number
of the account beneficiary,
‘‘(B) the name and address of such trustee,
‘‘(C) the account number,
‘‘(D) the routing number of the trustee, and
‘‘(E) such other information as the Secretary may
require.
‘‘(3) PERIOD OF REPORTING.—This subsection shall not apply
to any period after the calendar year in which the beneficiary
attains age 17.’’.
(2) QUALIFIED ABLE ROLLOVER CONTRIBUTIONS EXEMPT
FROM ABLE CONTRIBUTION LIMITATION.—
(A) IN GENERAL.—Section 529A(b)(2)(B) is amended by
inserting ‘‘or received in a qualified ABLE rollover contribu-
tion described in section 530A(d)(4)(B)’’ after ‘‘except as
provided in the case of contributions under subsection
(c)(1)(C)’’.
(B) PROHIBITION ON EXCESS CONTRIBUTIONS.—The
second sentence of section 529A(b)(6) is amended by
inserting ‘‘but do not include any contributions received
in a qualified ABLE rollover contribution described in sec-
tion 530A(d)(4)(B)’’ before the period at the end.
(C) CONFORMING AMENDMENT.—Section 4973(h)(1) is
amended by inserting ‘‘or contributions received in a quali-
fied ABLE rollover contribution described in section
530A(d)(4)(B)’’ after ‘‘other than contributions under section
529A(c)(1)(C)’’.
(3) FAILURE TO PROVIDE REPORTS ON TRUMP ACCOUNTS.—
Section 6693(a)(2) is amended by striking ‘‘and’’ at the end
of subparagraph (E), by striking the period at the end of
subparagraph (F) and inserting ‘‘, and’’, and by inserting after
subparagraph (F) the following new subparagraph:
‘‘(G) section 530A(i) (relating to Trump accounts).’’.
(4) CLERICAL AMENDMENT.—
(A) The table of parts for subchapter F of chapter
1 is amended by adding at the end the following new 26 USC
item: prec. 501.
‘‘PART IX—TRUMP ACCOUNTS’’.
(b) EMPLOYER CONTRIBUTIONS.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1
is amended by inserting after section 127 the following new
section:
139 STAT. 186 PUBLIC LAW 119–21—JULY 4, 2025
26 USC 128. ‘‘SEC. 128. EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS.
‘‘(a) IN GENERAL.—Gross income of an employee does not
include amounts paid by the employer as a contribution to the
Trump account of such employee or of any dependent of such
employee if the amounts are paid or incurred pursuant to a program
which is described in subsection (c).
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The amount which may be excluded
under subsection (a) with respect to any employee shall not
exceed $2,500.
‘‘(2) INFLATION ADJUSTMENT.—
Effective date. ‘‘(A) IN GENERAL.—In the case of any taxable year
beginning after 2027, the $2,500 amount in paragraph
(1) shall be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins by substituting ‘calendar year
2026’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
‘‘(B) ROUNDING.—If any increase determined under
subparagraph (A) is not a multiple of $100, such increase
shall be rounded to the next lowest multiple of $100.
‘‘(c) TRUMP ACCOUNT CONTRIBUTION PROGRAM.—For purposes
of this section, a Trump account contribution program is a separate
written plan of an employer for the exclusive benefit of his
employees to provide contributions to the Trump accounts of such
employees or dependents of such employees which meets require-
ments similar to the requirements of paragraphs (2), (3), (6), (7),
and (8) of section 129(d).’’.
(2) CLERICAL AMENDMENT.—The table of sections for part
26 USC III of subchapter B of chapter 1 is amended by inserting after
prec. 101. the item relating to section 127 the following new item:
‘‘Sec. 128. Employer contributions to Trump accounts.’’.
(c) CERTAIN CONTRIBUTIONS EXCLUDED FROM GROSS INCOME.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1
is amended by inserting before section 140 the following new
section:
26 USC 139J. ‘‘SEC. 139J. CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS.
‘‘(a) IN GENERAL.—Gross income of an account beneficiary shall
not include any qualified general contribution to a Trump account
of the account beneficiary.
‘‘(b) DEFINITIONS.—Any term used in this section which is used
in section 530A shall have the meaning given such term under
section 530A.’’.
(2) CLERICAL AMENDMENT.—The table of sections for part
26 USC III of subchapter B is amended by inserting before the item
prec. 101. relating to section 140 the following new item:
‘‘Sec. 139J. Certain contributions to Trump accounts.’’.
(d) TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM.—
(1) IN GENERAL.—Subchapter B of chapter 65 is amended
by adding at the end the following new section:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 187
‘‘SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM. 26 USC 6434.
‘‘(a) IN GENERAL.—In the case of an individual who makes
an election under this section with respect to an eligible child
of the individual, such eligible child shall be treated as making
a payment against the tax imposed by subtitle A (for the taxable
year for which the election was made) in an amount equal to
$1,000.
‘‘(b) REFUND OF PAYMENT.—The amount treated as a payment
under subsection (a) shall be paid by the Secretary to the Trump
account with respect to which such eligible child is the account
beneficiary.
‘‘(c) ELIGIBLE CHILD.—For purposes of this section, the term Definition.
‘eligible child’ means a qualifying child (as defined in section
152(c))—
‘‘(1) who is born after December 31, 2024, and before
January 1, 2029,
‘‘(2) with respect to whom no prior election has been made
under this section by such individual or any other individual,
and
‘‘(3) who is a United States citizen.
‘‘(d) ELECTION.—An election under this section shall be made
at such time and in such manner as the Secretary shall provide.
‘‘(e) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(1) IN GENERAL.—This section shall not apply to any tax-
payer unless such individual includes with the election made
under this section the social security number of the eligible
child with respect to whom the election is made.
‘‘(2) SOCIAL SECURITY NUMBER DEFINED.—For purposes of
paragraph (1), the term ‘social security number’ shall have
the meaning given such term in section 24(h)(7), determined
by substituting ‘before the date of the election made under
section 6434’ for ‘before the due date of such return’ in subpara-
graph (B) thereof.
‘‘(f) EXCEPTION FROM REDUCTION OR OFFSET.—Any payment
made to any individual under this section shall not be—
‘‘(1) subject to reduction or offset pursuant to subsection
(c), (d), (e), or (f) of section 6402 or any similar authority
permitting offset, or
‘‘(2) reduced or offset by other assessed Federal taxes that
would otherwise be subject to levy or collection.
‘‘(g) SPECIAL RULE REGARDING INTEREST.—The period deter- Effective date.
mined under section 6611(a) with respect to any payment under
this section shall not begin before January 1, 2028.
‘‘(h) MIRROR CODE POSSESSIONS.—In the case of any possession
of the United States with a mirror code tax system (as defined
in section 24(k)), this section shall not be treated as part of the
income tax laws of the United States for purposes of determining
the income tax law of such possession unless such possession elects
to have this section be so treated.
‘‘(i) DEFINITIONS.—For purposes of this section, the terms
‘Trump account’ and ‘account beneficiary’ have the meaning given
such terms in section 530A(b).’’.
(2) PENALTY FOR NEGLIGENT CLAIM OR FRAUDULENT
CLAIM.—Part I of subchapter A of chapter 68 is amended by
adding at the end the following new section:
139 STAT. 188 PUBLIC LAW 119–21—JULY 4, 2025
26 USC 6659. ‘‘SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CONTRIBUTION
PILOT PROGRAM CREDIT.
‘‘(a) IN GENERAL.—In the case of any individual who makes
an election under section 6434 with respect to an individual who
is not an eligible child of the taxpayer—
‘‘(1) if such election was made due to negligence or dis-
regard of the rules or regulations, there shall be imposed a
penalty of $500, or
‘‘(2) if such election was made due to fraud, there shall
be imposed a penalty of $1,000.
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE CHILD.—The term ‘eligible child’ has the
meaning given such term under section 6434.
‘‘(2) NEGLIGENCE; DISREGARD.—The terms ‘negligence’ and
‘disregard’ have the same meaning as when such terms are
used in section 6662.’’.
(3) OMISSION OF CORRECT SOCIAL SECURITY NUMBER
TREATED AS MATHEMATICAL OR CLERICAL ERROR.—Section
6213(g)(2), as amended by the preceding provisions of this
Act, is amended by striking ‘‘and’’ at the end of subparagraph
(Y), by striking the period at the end of subparagraph (Z)
and inserting ‘‘, and’’, and by inserting after subparagraph
(Z) the following new subparagraph:
‘‘(AA) an omission of a correct social security number
required under section 6434(e)(1) (relating to the Trump
accounts contribution pilot program).’’.
(4) CONFORMING AMENDMENTS.—
(A) The table of sections for subchapter B of chapter
26 USC 65 is amended by adding at the end the following new
prec. 6411. item:
‘‘Sec. 6434. Trump accounts contribution pilot program.’’.
(B) The table of sections for part I of subchapter A
26 USC of chapter 68 is amended by inserting after the item
prec. 6651. relating to section 6658 the following new item:
‘‘Sec. 6659. Improper claim for Trump account contribution pilot program credit.’’.
26 USC 128 note. (e) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
Expiration date. (f) FUNDING.—In addition to amounts otherwise available, there
is appropriated to the Department of the Treasury, out of any
money in the Treasury not otherwise appropriated, $410,000,000,
to remain available until September 30, 2034, to carry out the
amendments made by this section.
CHAPTER 3—ESTABLISHING CERTAINTY AND
COMPETITIVENESS FOR AMERICAN JOB CREATORS
Subchapter A—Permanent U.S. Business Tax Reform and
Boosting Domestic Investment
Applicability. SEC. 70301. FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY.
(a) MADE PERMANENT.—
(1) IN GENERAL.—Section 168(k)(2)(A) is amended by adding
‘‘and’’ at the end of clause (i), by striking ‘‘, and’’ at the end
of clause (ii) and inserting a period, and by striking clause
(iii).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 189
(2) PROPERTY WITH LONGER PRODUCTION PERIODS.—Section
168(k)(2)(B) is amended—
(A) in clause (i), by striking subclauses (II) and (III)
and redesignating subclauses (IV), (V), and (VI), as sub-
clauses (II), (III), and (IV), respectively, and
(B) by striking clause (ii) and redesignating clauses
(iii) and (iv) as clauses (ii) and (iii), respectively.
(3) SELF-CONSTRUCTED PROPERTY.—Section 168(k)(2)(E) is
amended by striking clause (i) and redesignating clauses (ii)
and (iii) as clauses (i) and (ii), respectively.
(4) CERTAIN PLANTS.—Section 168(k)(5)(A) is amended by
striking ‘‘planted before January 1, 2027, or is grafted before
such date to a plant that has already been planted,’’ in the
matter preceding clause (i) and inserting ‘‘planted or grafted’’.
(5) CONFORMING AMENDMENTS.—
(A) Section 168(k)(2)(A)(ii) is amended by striking
‘‘clause (ii) of subparagraph (E)’’ and inserting ‘‘clause (i)
of subparagraph (E)’’.
(B) Section 168(k)(2)(C)(i) is amended by striking ‘‘and
subclauses (II) and (III) of subparagraph (B)(i)’’.
(C) Section 168(k)(2)(C)(ii) is amended by striking
‘‘subparagraph (B)(iii)’’ and inserting ‘‘subparagraph
(B)(ii)’’.
(D) Section 460(c)(6)(B) is amended by striking ‘‘which’’
and all that follows through the period and inserting ‘‘which
has a recovery period of 7 years or less.’’.
(b) 100 PERCENT EXPENSING.—
(1) IN GENERAL.—Section 168(k) is amended—
(A) in paragraph (1)(A), by striking ‘‘the applicable
percentage’’ and inserting ‘‘100 percent’’, and
(B) by striking paragraphs (6) and (8).
(2) CERTAIN PLANTS.—Section 168(k)(5)(A)(i) is amended
by striking ‘‘the applicable percentage’’ and inserting ‘‘100 per-
cent’’.
(3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.— Time period.
Section 168(k)(10) is amended by striking subparagraph (A),
by redesignating subparagraph (B) as subparagraph (C), and
by inserting before subparagraph (C) (as so redesignated) the
following new subparagraphs:
‘‘(A) IN GENERAL.—In the case of qualified property
placed in service by the taxpayer during the first taxable
year ending after January 19, 2025, if the taxpayer elects
to have this paragraph apply for such taxable year, para-
graph (1)(A) shall be applied—
‘‘(i) in the case of property which is not described
in clause (ii), by substituting ‘40 percent’ for ‘100 per-
cent’, or
‘‘(ii) in the case of property which is described
in subparagraph (B) or (C) of paragraph (2), by sub-
stituting ‘60 percent’ for ‘100 percent’.
‘‘(B) SPECIFIED PLANTS.—In the case of any specified
plant planted or grafted by the taxpayer during the first
taxable year ending after January 19, 2025, if the taxpayer
elects to have this paragraph apply for such taxable year,
paragraph (5)(A)(i) shall be applied by substituting ‘40
percent’ for ‘100 percent’.’’.
(c) EFFECTIVE DATE.— 26 USC 168 note.
139 STAT. 190 PUBLIC LAW 119–21—JULY 4, 2025
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to
property acquired after January 19, 2025.
(2) SPECIFIED PLANTS.—Except as provided in paragraph
(3), in the case of any specified plant (as defined in section
168(k)(5)(B) of the Internal Revenue Code of 1986, as amended
by this section), the amendments made by this section shall
apply to such plants which are planted or grafted after January
19, 2025.
(3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.—
The amendment made by subsection (b)(3) shall apply to taxable
years ending after January 19, 2025.
(4) ACQUISITION DATE DETERMINATION.—For purposes of
paragraph (1), property shall not be treated as acquired after
the date on which a written binding contract is entered into
for such acquisition.
SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERI-
MENTAL EXPENDITURES.
(a) IN GENERAL.—Part VI of subchapter B of chapter 1 is
amended by inserting after section 174 the following new section:
26 USC 174A. ‘‘SEC. 174A. DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
‘‘(a) TREATMENT AS EXPENSES.—Notwithstanding section 263,
there shall be allowed as a deduction any domestic research or
experimental expenditures which are paid or incurred by the tax-
payer during the taxable year.
‘‘(b) DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.—
Definition. For purposes of this section, the term ‘domestic research or experi-
mental expenditures’ means research or experimental expenditures
paid or incurred by the taxpayer in connection with the taxpayer’s
trade or business other than such expenditures which are attrib-
utable to foreign research (within the meaning of section
41(d)(4)(F)).
‘‘(c) AMORTIZATION OF CERTAIN DOMESTIC RESEARCH OR EXPERI-
MENTAL EXPENDITURES.—
‘‘(1) IN GENERAL.—At the election of the taxpayer, made
in accordance with regulations or other guidance provided by
the Secretary, in the case of domestic research or experimental
expenditures which would (but for subsection (a)) be chargeable
to capital account but not chargeable to property of a character
which is subject to the allowance under section 167 (relating
to allowance for depreciation, etc.) or section 611 (relating to
allowance for depletion), subsection (a) shall not apply and
the taxpayer shall—
‘‘(A) charge such expenditures to capital account, and
Time period. ‘‘(B) be allowed an amortization deduction of such
expenditures ratably over such period of not less than
60 months as may be selected by the taxpayer (beginning
with the month in which the taxpayer first realizes benefits
from such expenditures).
Deadline. ‘‘(2) TIME FOR AND SCOPE OF ELECTION.—The election pro-
vided by paragraph (1) may be made for any taxable year,
but only if made not later than the time prescribed by law
for filing the return for such taxable year (including extensions
Approval. thereof). The method so elected, and the period selected by
the taxpayer, shall be adhered to in computing taxable income
for the taxable year for which the election is made and for
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 191
all subsequent taxable years unless, with the approval of the
Secretary, a change to a different method (or to a different
period) is authorized with respect to part or all of such expendi-
tures. The election shall not apply to any expenditure paid
or incurred during any taxable year before the taxable year
for which the taxpayer makes the election.
‘‘(d) SPECIAL RULES.—
‘‘(1) LAND AND OTHER PROPERTY.—This section shall not
apply to any expenditure for the acquisition or improvement
of land, or for the acquisition or improvement of property to
be used in connection with the research or experimentation
and of a character which is subject to the allowance under
section 167 (relating to allowance for depreciation, etc.) or sec-
tion 611 (relating to allowance for depletion); but for purposes
of this section allowances under section 167, and allowances
under section 611, shall be considered as expenditures.
‘‘(2) EXPLORATION EXPENDITURES.—This section shall not
apply to any expenditure paid or incurred for the purpose
of ascertaining the existence, location, extent, or quality of
any deposit of ore or other mineral (including oil and gas).
‘‘(3) SOFTWARE DEVELOPMENT.—For purposes of this sec-
tion, any amount paid or incurred in connection with the
development of any software shall be treated as a research
or experimental expenditure.’’.
(b) COORDINATION WITH CERTAIN OTHER PROVISIONS.—
(1) FOREIGN RESEARCH EXPENSES.—Section 174 is
amended—
(A) in subsection (a)—
(i) by striking ‘‘a taxpayer’s specified research or
experimental expenditures’’ and inserting ‘‘a taxpayer’s
foreign research or experimental expenditures’’, and
(ii) by striking ‘‘over the 5-year period (15-year
period in the case of any specified research or experi-
mental expenditures which are attributable to foreign
research (within the meaning of section 41(d)(4)(F)))’’
in paragraph (2)(B) and inserting ‘‘over the 15-year
period’’,
(B) in subsection (b)—
(i) by striking ‘‘specified research’’ and inserting
‘‘foreign research’’,
(ii) by inserting ‘‘and which are attributable to
foreign research (within the meaning of section
41(d)(4)(F))’’ before the period at the end, and
(iii) by striking ‘‘SPECIFIED’’ in the heading thereof
and inserting ‘‘FOREIGN’’, and
(C) in subsection (d)—
(i) by striking ‘‘specified research or experimental
expenditures’’ and inserting ‘‘foreign research or experi-
mental expenditures’’, and
(ii) by inserting ‘‘or reduction to amount realized’’
after ‘‘no deduction’’.
(2) RESEARCH CREDIT.—
(A) Section 41(d)(1)(A) is amended to read as follows:
‘‘(A) with respect to which expenditures are treated
as domestic research or experimental expenditures under
section 174A,’’.
(B) Section 280C(c)(1) is amended to read as follows:
139 STAT. 192 PUBLIC LAW 119–21—JULY 4, 2025
Reduction. ‘‘(1) IN GENERAL.—The domestic research or experimental
expenditures (as defined in section 174A(b)) otherwise taken
into account as a deduction or charged to capital account under
this chapter shall be reduced by the amount of the credit
allowed under section 41(a).’’.
(3) AMT ADJUSTMENT.—Section 56(b)(2) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘or 174(a)’’ in the matter preceding
clause (i) and inserting ‘‘, 174(a), or 174A(a)’’, and
(ii) by striking ‘‘research and experimental
expenditures described in section 174(a)’’ in clause (ii)
thereof and inserting ‘‘foreign research or experimental
expenditures described in section 174(a) and domestic
research or experimental expenditures in section
174A(a)’’, and
(B) in subparagraph (C), by inserting ‘‘or 174A(a)’’ after
‘‘174(a)’’.
(4) OPTIONAL 10-YEAR WRITEOFF.—Section 59(e)(2)(B) is
amended by striking ‘‘section 174(a) (relating to research and
experimental expenditures)’’ and inserting ‘‘section 174A(a)
(relating to domestic research or experimental expenditures)’’.
(5) QUALIFIED SMALL ISSUE BONDS.—Section 144(a)(4)(C)(iv)
is amended by striking ‘‘174(a)’’ and inserting ‘‘174A(a)’’.
(6) START-UP EXPENDITURES.—Section 195(c)(1) is amended
by striking ‘‘or 174’’ in the last sentence and inserting ‘‘174,
or 174A’’.
(7) CAPITAL EXPENDITURES.—
(A) Section 263(a)(1)(B) is amended by inserting ‘‘or
174A’’ after ‘‘174’’.
(B) Section 263A(c)(2) is amended by inserting ‘‘or
174A’’ after ‘‘174’’.
(8) ACTIVE BUSINESS COMPUTER SOFTWARE ROYALTIES.—Sec-
tion 543(d)(4)(A)(i) is amended by inserting ‘‘174A,’’ after ‘‘174,’’.
(9) SOURCE RULES.—Section 864(g)(2) is amended—
(A) by striking ‘‘research and experimental expendi-
tures within the meaning of section 174’’ in the first sen-
tence and inserting ‘‘foreign research or experimental
expenditures within the meaning of section 174 or domestic
research or experimental expenditures within the meaning
of section 174A’’, and
(B) in the last sentence—
(i) by striking ‘‘treated as deferred expenses under
subsection (b) of section 174’’ and inserting ‘‘allowed
as an amortization deduction under section 174(a) or
section 174A(c),’’, and
(ii) by striking ‘‘such subsection’’ and inserting
‘‘such section (as the case may be)’’.
(10) BASIS ADJUSTMENT.—Section 1016(a)(14) is amended
by striking ‘‘deductions as deferred expenses under section
174(b)(1) (relating to research and experimental expenditures)’’
and inserting ‘‘deductions under section 174 or 174A(c)’’.
(11) SMALL BUSINESS STOCK.—Section 1202(e)(2)(B) is
amended by striking ‘‘which may be treated as research and
experimental expenditures under section 174’’ and inserting
‘‘which are treated as foreign research or experimental expendi-
tures under section 174 or domestic research or experimental
expenditures under section 174A’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 193
(c) CHANGE IN METHOD OF ACCOUNTING.— Applicability.
(1) IN GENERAL.—The amendments made by subsection Effective dates.
(a) shall be treated as a change in method of accounting for 26 USC 174A
note.
purposes of section 481 of the Internal Revenue Code of 1986
and—
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary, and
(C) such change shall be applied only on a cut-off
basis for any domestic research or experimental expendi-
tures (as defined in section 174A(b) of such Code (as added
by this section) and determined by applying the rules of
section 174A(d) of such Code) paid or incurred in taxable
years beginning after December 31, 2024, and no adjust-
ments under section 481(a) shall be made.
(2) SPECIAL RULES.—In the case of a taxable year which
begins after December 31, 2024, and ends before the date
of the enactment of this Act—
(A) paragraph (1)(C) shall not apply, and
(B) the change in method of accounting under para-
graph (1) shall be applied on a modified cut-off basis,
taking into account for purposes of section 481(a) of such
Code only the domestic research or experimental expendi-
tures (as defined in section 174A(b) of such Code (as added
by this section) and determined by applying the rules of
section 174A(d) of such Code) paid or incurred in such
taxable year but not allowed as a deduction in such taxable
year.
(d) CLERICAL AMENDMENT.—The table of sections for part VI
of subchapter B of chapter 1 is amended by inserting after the 26 USC
item relating to section 174 the following new item: prec. 161.
‘‘Sec. 174A. Domestic research or experimental expenditures.’’.
(e) EFFECTIVE DATE.— Applicability.
(1) IN GENERAL.—Except as otherwise provided in this sub- 26 USC 174A
section or subsection (f)(1), the amendments made by this sec- note.
tion shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2024.
(2) TREATMENT OF FOREIGN RESEARCH OR EXPERIMENTAL
EXPENDITURES UPON DISPOSITION.—
(A) IN GENERAL.—The amendment by subsection
(b)(1)(C)(ii) shall apply to property disposed, retired, or
abandoned after May 12, 2025.
(B) NO INFERENCE.—The amendment made by sub-
section (b)(1)(C)(ii) shall not be construed to create any
inference with respect to the proper application of section
174(d) of the Internal Revenue Code of 1986 with respect
to taxable years beginning before May 13, 2025.
(3) COORDINATION WITH RESEARCH CREDIT.—The amend-
ment made by subsection (b)(2)(B) shall apply to taxable years
beginning after December 31, 2024.
(4) NO INFERENCE WITH RESPECT TO COORDINATION WITH
RESEARCH CREDIT FOR PRIOR PERIODS.—The amendment made
by subsection (b)(2)(B) shall not be construed to create any
inference with respect to the proper application of section
280C(c) of the Internal Revenue Code of 1986 with respect
to taxable years beginning before January 1, 2025.
139 STAT. 194 PUBLIC LAW 119–21—JULY 4, 2025
(f) TRANSITION RULES.—
(1) ELECTION FOR RETROACTIVE APPLICATION BY CERTAIN
SMALL BUSINESSES.—
(A) IN GENERAL.—At the election of an eligible tax-
payer, paragraphs (1) and (3) of subsection (e) shall each
be applied by substituting ‘‘December 31, 2021’’ for
Deadline. ‘‘December 31, 2024’’. An election made under this subpara-
graph shall be made in such manner as the Secretary
may provide and not later than the date that is 1 year
after the date of the enactment of this Act. The taxpayer
shall file an amended return for each taxable year affected
by such election.
Definition. (B) ELIGIBLE TAXPAYER.—For purposes of this para-
graph, the term ‘‘eligible taxpayer’’ means any taxpayer
(other than a tax shelter prohibited from using the cash
receipts and disbursements method of accounting under
section 448(a)(3)) which meets the gross receipts test of
section 448(c) for the first taxable year beginning after
December 31, 2024.
(C) ELECTION TREATED AS CHANGE IN METHOD OF
ACCOUNTING.—In the case of any taxpayer which elects
the application of subparagraph (A)—
(i) such election may be treated as a change in
method of accounting for purposes of section 481 of
such Code for the taxpayer’s first taxable year affected
by such election,
(ii) such change shall be treated as initiated by
the taxpayer for such taxable year,
(iii) such change shall be treated as made with
the consent of the Secretary, and
(iv) subsection (c) shall not apply to such taxpayer.
(D) ELECTION REGARDING COORDINATION WITH
Effective date. RESEARCH CREDIT.—An election under section 280C(c)(2)
Time period. of the Internal Revenue Code of 1986 (or revocation of
such election) for any taxable year beginning after
December 31, 2021, by an eligible taxpayer making an
election under subparagraph (A) shall not fail to be treated
as timely made (or as made on the return) if made during
the 1-year period beginning on the date of the enactment
of this Act on an amended return for such taxable year.
(2) ELECTION TO DEDUCT CERTAIN UNAMORTIZED AMOUNTS
PAID OR INCURRED IN TAXABLE YEARS BEGINNING BEFORE
JANUARY 1, 2025.—
Time periods. (A) IN GENERAL.—In the case of any domestic research
or experimental expenditures (as defined in section 174A,
as added by subsection (a)) which are paid or incurred
in taxable years beginning after December 31, 2021, and
before January 1, 2025, and which was charged to capital
account, a taxpayer may elect—
(i) to deduct any remaining unamortized amount
with respect to such expenditures in the first taxable
year beginning after December 31, 2024, or
(ii) to deduct such remaining unamortized amount
with respect to such expenditures ratably over the
2-taxable year period beginning with the first taxable
year beginning after December 31, 2024.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 195
(B) CHANGE IN METHOD OF ACCOUNTING.—In the case
of a taxpayer who makes an election under this para-
graph—
(i) such taxpayer shall be treated as initiating
a change in method of accounting for purposes of sec-
tion 481 of the Internal Revenue Code of 1986 with
respect to the expenditures to which the election
applies,
(ii) such change shall be treated as made with
the consent of the Secretary, and
(iii) such change shall be applied only on a cut- Applicability.
off basis for such expenditures and no adjustments
under section 481(a) shall be made.
(C) REGULATIONS.—The Secretary of the Treasury (or Publication.
the Secretary’s delegate) shall publish such guidance or Guidance.
regulations as may be necessary to carry out the purposes Time periods.
of this paragraph, including regulations or guidance
allowing for the deduction allowed under subparagraph
(A) in the case of taxpayers with taxable years beginning
after December 31, 2024, and ending before the date of
the enactment of this Act.
SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST.
(a) IN GENERAL.—Section 163(j)(8)(A)(v) is amended by striking
‘‘in the case of taxable years beginning before January 1, 2022,’’.
(b) FLOOR PLAN FINANCING APPLICABLE TO CERTAIN TRAILERS
AND CAMPERS.—Section 163(j)(9)(C) is amended by adding at the
end the following new flush sentence:
‘‘Such term shall also include any trailer or camper which
is designed to provide temporary living quarters for rec-
reational, camping, or seasonal use and is designed to
be towed by, or affixed to, a motor vehicle.’’.
(c) EFFECTIVE DATE AND SPECIAL RULE.— 26 USC 163 note.
(1) IN GENERAL.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2024.
(2) SPECIAL RULE FOR SHORT TAXABLE YEARS.—The Sec- Time period.
retary of the Treasury (or the Secretary’s delegate) may pre-
scribe such rules as are necessary or appropriate to provide
for the application of the amendments made by this section
in the case of any taxable year of less than 12 months that
begins after December 31, 2024, and ends before the date
of the enactment of this Act.
SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND
MEDICAL LEAVE CREDIT.
(a) IN GENERAL.—Section 45S is amended—
(1) in subsection (a)—
(A) by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—For purposes of section 38, in the case
of an eligible employer, the paid family and medical leave
credit is an amount equal to either of the following (as elected
by such employer):
‘‘(A) The applicable percentage of the amount of wages
paid to qualifying employees with respect to any period
in which such employees are on family and medical leave.
‘‘(B) If such employer has an insurance policy with
regards to the provision of paid family and medical leave
139 STAT. 196 PUBLIC LAW 119–21—JULY 4, 2025
which is in force during the taxable year, the applicable
percentage of the total amount of premiums paid or
incurred by such employer during such taxable year with
respect to such insurance policy.’’, and
(B) by adding at the end the following:
‘‘(3) RATE OF PAYMENT DETERMINED WITHOUT REGARD TO
WHETHER LEAVE IS TAKEN.—For purposes of determining the
applicable percentage with respect to paragraph (1)(B), the
rate of payment under the insurance policy shall be determined
without regard to whether any qualifying employees were on
family and medical leave during the taxable year.’’,
(2) in subsection (b)(1), by striking ‘‘credit allowed’’ and
inserting ‘‘wages taken into account’’,
(3) in subsection (c), by striking paragraphs (3) and (4)
and inserting the following:
‘‘(3) AGGREGATION RULE.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), all persons which are treated as a single employer
under subsections (b) and (c) of section 414 shall be treated
as a single employer.
‘‘(B) EXCEPTION.—
‘‘(i) IN GENERAL.—Subparagraph (A) shall not
apply to any person who establishes to the satisfaction
of the Secretary that such person has a substantial
and legitimate business reason for failing to provide
a written policy described in paragraph (1) or (2).
‘‘(ii) SUBSTANTIAL AND LEGITIMATE BUSINESS REA-
Definition. SON.—For purposes of clause (i), the term ‘substantial
and legitimate business reason’ shall not include the
operation of a separate line of business, the rate of
wages or category of jobs for employees (or any similar
basis), or the application of State or local laws relating
to family and medical leave, but may include the
grouping of employees of a common law employer.
‘‘(4) TREATMENT OF BENEFITS MANDATED OR PAID FOR BY
STATE OR LOCAL GOVERNMENTS.—For purposes of this section,
any leave which is paid by a State or local government or
required by State or local law—
‘‘(A) except as provided in subparagraph (B), shall be
taken into account in determining the amount of paid
family and medical leave provided by the employer, and
‘‘(B) shall not be taken into account in determining
the amount of the paid family and medical leave credit
under subsection (a).’’,
(4) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘(or, at the election
of the employer, for not less than 6 months)’’ after ‘‘1
year or more’’,
(B) in paragraph (2)—
(i) by inserting ‘‘, as determined on an annualized
basis (pro-rata for part-time employees),’’ after ‘‘com-
pensation’’, and
(ii) by striking the period at the end and inserting
‘‘, and’’, and
(C) by adding at the end the following:
‘‘(3) is customarily employed for not less than 20 hours
per week.’’, and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 197
(5) by striking subsection (i).
(b) NO DOUBLE BENEFIT.—Section 280C(a) is amended—
(1) by striking ‘‘45S(a)’’ and inserting ‘‘45S(a)(1)(A)’’, and
(2) by inserting after the first sentence the following: ‘‘No
deduction shall be allowed for that portion of the premiums
paid or incurred for the taxable year which is equal to that
portion of the paid family and medical leave credit which is
determined for the taxable year under section 45S(a)(1)(B).’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 45S note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR
BUSINESS MEALS.
(a) EXCEPTION TO DENIAL OF DEDUCTION FOR BUSINESS
MEALS.—Section 274(o), as added by section 13304 of Public Law
115-97, is amended by striking ‘‘No deduction’’ and inserting ‘‘Except
in the case of an expense described in subsection (e)(8) or (n)(2)(C),
no deduction’’.
(b) MEALS PROVIDED ON CERTAIN FISHING BOATS AND AT CER-
TAIN FISH PROCESSING FACILITIES NOT SUBJECT TO 50 PERCENT
LIMITATION.—Section 274(n)(2)(C) of the Internal Revenue Code
of 1986 is amended by striking ‘‘or’’ at the end of clause (iii)
and by adding at the end the following new clause:
‘‘(v) provided—
‘‘(I) on a fishing vessel, fish processing vessel,
or fish tender vessel (as such terms are defined
in section 2101 of title 46, United States Code),
or
‘‘(II) at a facility for the processing of fish
for commercial use or consumption which—
‘‘(aa) is located in the United States north
of 50 degrees north latitude, and
‘‘(bb) is not located in a metropolitan
statistical area (within the meaning of section
143(k)(2)(B)), or’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 274 note.
shall apply to amounts paid or incurred after December 31, 2025.
SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF
CERTAIN DEPRECIABLE BUSINESS ASSETS.
(a) IN GENERAL.—Section 179(b) is amended—
(1) in paragraph (1), by striking ‘‘$1,000,000’’ and inserting
‘‘$2,500,000’’, and
(2) in paragraph (2), by striking ‘‘$2,500,000’’ and inserting
‘‘$4,000,000’’.
(b) CONFORMING AMENDMENTS.—Section 179(b)(6)(A) is
amended—
(1) by inserting ‘‘(2025 in the case of the dollar amounts
in paragraphs (1) and (2))’’ after ‘‘In the case of any taxable
year beginning after 2018’’, and
(2) in clause (ii), by striking ‘‘determined by substituting
‘calendar year 2017’ for ‘calendar year 2016’ in subparagraph
(A)(ii) thereof.’’ and inserting ″determined by substituting in
subparagraph (A)(ii) thereof— ‘‘
‘‘(I) in the case of amounts in paragraphs (1)
and (2), ‘calendar year 2024’ for ‘calendar year
2016’, and
139 STAT. 198 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(II) in the case of the amount in paragraph
(5)(A), ‘calendar year 2017’ for ‘calendar year
2016’.’’.
26 USC 179 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to property placed in service in taxable years beginning
after December 31, 2024.
SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED
PRODUCTION PROPERTY.
(a) IN GENERAL.—Section 168 is amended by adding at the
end the following new subsection:
‘‘(n) SPECIAL ALLOWANCE FOR QUALIFIED PRODUCTION PROP-
ERTY.—
‘‘(1) IN GENERAL.—In the case of any qualified production
property of a taxpayer making an election under this sub-
section—
‘‘(A) the depreciation deduction provided by section
167(a) for the taxable year in which such property is placed
in service shall include an allowance equal to 100 percent
of the adjusted basis of the qualified production property,
and
Reduction. ‘‘(B) the adjusted basis of the qualified production prop-
erty shall be reduced by the amount of such deduction
before computing the amount otherwise allowable as a
depreciation deduction under this chapter for such taxable
year and any subsequent taxable year.
‘‘(2) QUALIFIED PRODUCTION PROPERTY.—For purposes of
this subsection—
Definition. ‘‘(A) IN GENERAL.—The term ‘qualified production prop-
erty’ means that portion of any nonresidential real prop-
erty—
‘‘(i) to which this section applies,
‘‘(ii) which is used by the taxpayer as an integral
part of a qualified production activity,
‘‘(iii) which is placed in service in the United States
or any possession of the United States,
‘‘(iv) the original use of which commences with
the taxpayer,
‘‘(v) the construction of which begins after January
19, 2025, and before January 1, 2029,
‘‘(vi) which is designated by the taxpayer in the
election made under this subsection, and
‘‘(vii) which is placed in service before January
1, 2031.
For purposes of clause (ii), in the case of property with
respect to which the taxpayer is a lessor, property used
by a lessee shall not be considered to be used by the
taxpayer as part of a qualified production activity.
‘‘(B) SPECIAL RULE FOR CERTAIN PROPERTY NOT PRE-
VIOUSLY USED IN QUALIFIED PRODUCTION ACTIVITIES.—
‘‘(i) IN GENERAL.—In the case of property acquired
by the taxpayer during the period described in subpara-
graph (A)(v), the requirements of clauses (iv) and (v)
of subparagraph (A) shall be treated as satisfied if—
Time period. ‘‘(I) such property was not used in a qualified
production activity (determined without regard to
the second sentence of subparagraph (D)) by any
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 199
person at any time during the period beginning
on January 1, 2021, and ending on May 12, 2025,
‘‘(II) such property was not used by the tax-
payer at any time prior to such acquisition, and
‘‘(III) the acquisition of such property meets
the requirements of paragraphs (2)(A), (2)(B),
(2)(C), and (3) of section 179(d).
‘‘(ii) WRITTEN BINDING CONTRACTS.—For purposes
of determining under clause (i)—
‘‘(I) whether such property is acquired before
the period described in subparagraph (A)(v), such
property shall be treated as acquired not later
than the date on which the taxpayer enters into
a written binding contract for such acquisition,
and
‘‘(II) whether such property is acquired after
such period, such property shall be treated as
acquired not earlier than such date.
‘‘(C) EXCLUSION OF OFFICE SPACE, ETC.—The term
‘qualified production property’ shall not include that portion
of any nonresidential real property which is used for offices,
administrative services, lodging, parking, sales activities,
research activities, software development or engineering
activities, or other functions unrelated to the manufac-
turing, production, or refining of tangible personal property.
‘‘(D) QUALIFIED PRODUCTION ACTIVITY.—The term Definition.
‘qualified production activity’ means the manufacturing,
production, or refining of a qualified product. The activities
of any taxpayer do not constitute manufacturing, produc-
tion, or refining of a qualified product unless the activities
of such taxpayer result in a substantial transformation
of the property comprising the product.
‘‘(E) PRODUCTION.—The term ‘production’ shall not
include activities other than agricultural production and
chemical production.
‘‘(F) QUALIFIED PRODUCT.—The term ‘qualified product’ Definition.
means any tangible personal property if such property is
not a food or beverage prepared in the same building
as a retail establishment in which such property is sold.
‘‘(G) SYNDICATION.—For purposes of subparagraph Applicability.
(A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii)
shall apply.
‘‘(H) EXTENSION OF PLACED IN SERVICE DATE UNDER
CERTAIN CIRCUMSTANCES.—The Secretary may extend the Determination.
date under subparagraph (A)(vii) with respect to any prop-
erty that meets the requirements of clauses (i) through
(vi) of subparagraph (A) if the Secretary determines that
an act of God (as defined in section 101(1) of the Com-
prehensive Environmental Response, Compensation, and
Liability Act of 1980) prevents the taxpayer from placing
such property in service before such date.
‘‘(3) DEDUCTION ALLOWED IN COMPUTING MINIMUM TAX.— Determination.
For purposes of determining alternative minimum taxable
income under section 55, the deduction under section 167 for
qualified production property shall be determined under this
section without regard to any adjustment under section 56.
‘‘(4) COORDINATION WITH CERTAIN OTHER PROVISIONS.—
139 STAT. 200 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(A) OTHER SPECIAL DEPRECIATION ALLOWANCES.—For
purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)—
‘‘(i) qualified production property shall be treated
as a separate class of property, and
‘‘(ii) the taxpayer shall be treated as having made
an election under such subsections with respect to
such class.
‘‘(B) ALTERNATIVE DEPRECIATION PROPERTY.—The term
‘qualified production property’ shall not include any prop-
erty to which the alternative depreciation system under
Applicability. subsection (g) applies. For purposes of subsection (g)(7)(A),
qualified production property to which this subsection
applies shall be treated as separate nonresidential real
property.
Time period. ‘‘(5) RECAPTURE.—If, at any time during the 10-year period
beginning on the date that any qualified production property
is placed in service by the taxpayer, such property ceases to
be used as described in paragraph (2)(A)(ii) and is used by
the taxpayer in a productive use not described in paragraph
(2)(A)(ii)—
Applicability. ‘‘(A) section 1245 shall be applied—
‘‘(i) by treating such property as having been dis-
posed of by the taxpayer as of the first time such
property is so used in a productive use not described
in paragraph (2)(A)(ii), and
‘‘(ii) by treating the amount described in subpara-
graph (B) of section 1245(a)(1) with respect to such
disposition as being not less than the amount described
in subparagraph (A) of such section, and
Adjustment. ‘‘(B) the basis of the taxpayer in such property, and
the taxpayer’s allowance for depreciation with respect to
such property, shall be appropriately adjusted to take into
account amounts recognized by reason of subparagraph
(A).
‘‘(6) ELECTION.—
‘‘(A) IN GENERAL.—An election under this subsection
for any taxable year shall—
‘‘(i) specify the nonresidential real property subject
to the election and the portion of such property des-
ignated under paragraph (2)(A)(vi), and
‘‘(ii) except as otherwise provided by the Secretary,
be made on the taxpayer’s return of the tax imposed
by this chapter for the taxable year.
Such election shall be made in such manner as the Sec-
retary may prescribe by regulations or other guidance.
‘‘(B) ELECTION.—Any election made under this sub-
section, and any specification contained in any such elec-
tion, may not be revoked except with the consent of the
Secretary (and the Secretary shall provide such consent
only in extraordinary circumstances).
Guidance. ‘‘(7) REGULATIONS.—The Secretary shall issue such regula-
tions or other guidance as may be necessary or appropriate
to carry out the purposes of this subsection, including regula-
tions or other guidance—
‘‘(A) providing rules for regarding what constitutes
substantial transformation of property which are consistent
with guidance provided under section 954(d), and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 201
‘‘(B) providing for the application of paragraph (5) with Applicability.
respect to a change in use described in such paragraph
by a transferee following a fully or partially tax free
transfer of qualified production property.’’.
(b) TREATMENT OF QUALIFIED PRODUCTION PROPERTY AS SEC-
TION 1245 PROPERTY.—Section 1245(a)(3) is amended by striking
‘‘or’’ at the end of subparagraph (E), by striking the period at
the end of subparagraph (F) and inserting ‘‘, or’’, and by adding
at the end the following new subparagraph:
‘‘(G) any qualified production property (as defined in
section 168(n)(2)).’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 168 note.
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVEST-
MENT CREDIT.
(a) IN GENERAL.—Section 48D(a) is amended by striking ‘‘25
percent’’ and inserting ‘‘35 percent’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 48D
shall apply to property placed in service after December 31, 2025. note.
SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER
EXEMPT FACILITY BOND RULES.
(a) IN GENERAL.—Section 142(a)(1) is amended to read as fol-
lows:
‘‘(1) airports and spaceports,’’.
(b) TREATMENT OF GROUND LEASES.—Section 142(b)(1) is
amended by adding at the end the following new subparagraph:
‘‘(C) SPECIAL RULE FOR SPACEPORT GROUND LEASES.—
For purposes of subparagraph (A), spaceport property
located on land leased by a governmental unit from the
United States shall not fail to be treated as owned by
a governmental unit if the requirements of this paragraph
are met by the lease and any subleases of the property.’’.
(c) DEFINITION OF SPACEPORT.—Section 142 is amended by
adding at the end the following new subsection:
‘‘(p) SPACEPORT.—
‘‘(1) IN GENERAL.—For purposes of subsection (a)(1), the
term ‘spaceport’ means any facility located at or in close prox-
imity to a launch site or reentry site used for—
‘‘(A) manufacturing, assembling, or repairing space-
craft, space cargo, other facilities described in this para-
graph, or any component of the foregoing,
‘‘(B) flight control operations,
‘‘(C) providing launch services and reentry services,
or
‘‘(D) transferring crew, spaceflight participants, or
space cargo to or from spacecraft.
‘‘(2) ADDITIONAL TERMS.—For purposes of paragraph (1)—
‘‘(A) SPACE CARGO.—The term ‘space cargo’ includes
satellites, scientific experiments, other property trans-
ported into space, and any other type of payload, whether
or not such property returns from space.
‘‘(B) SPACECRAFT.—The term ‘spacecraft’ means a
launch vehicle or a reentry vehicle.
‘‘(C) OTHER TERMS.—The terms ‘launch site’, ‘crew’,
‘space flight participant’, ‘launch services’, ‘launch vehicle’,
139 STAT. 202 PUBLIC LAW 119–21—JULY 4, 2025
‘payload’, ‘reentry services’, ‘reentry site’, a ‘reentry vehicle’
shall have the respective meanings given to such terms
by section 50902 of title 51, United States Code (as in
effect on the date of enactment of this subsection).
‘‘(3) PUBLIC USE REQUIREMENT.—A facility shall not be
required to be available for use by the general public to be
treated as a spaceport for purposes of this section.
‘‘(4) MANUFACTURING FACILITIES AND INDUSTRIAL PARKS
ALLOWED.—With respect to spaceports, subsection (c)(2)(E) shall
not apply to spaceport property described in paragraph (1)(A).’’.
(d) EXCEPTION FROM FEDERALLY GUARANTEED BOND PROHIBI-
TION.—Section 149(b)(3) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(F) EXCEPTION FOR SPACEPORTS.—A bond shall not
be treated as federally guaranteed merely because of the
payment of rent, user fees, or other charges by the United
States (or any agency or instrumentality thereof) in
exchange for the use of the spaceport by the United States
(or any agency or instrumentality thereof).’’.
(e) CONFORMING AMENDMENT.—The heading for section 142(c)
is amended by inserting ‘‘SPACEPORTS,’’ after ‘‘AIRPORTS,’’.
26 USC 142 note. (f) EFFECTIVE DATE.—The amendments made by this section
shall apply to obligations issued after the date of the enactment
of this Act.
Subchapter B—Permanent America-first International Tax
Reforms
PART I—FOREIGN TAX CREDIT
SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT
LIMITATION.
(a) RULES FOR ALLOCATION OF CERTAIN DEDUCTIONS TO FOR-
EIGN SOURCE NET CFC TESTED INCOME FOR PURPOSES OF FOREIGN
TAX CREDIT LIMITATION.—Section 904(b) is amended by adding
at the end the following new paragraph:
‘‘(5) DEDUCTIONS TREATED AS ALLOCABLE TO FOREIGN
SOURCE NET CFC TESTED INCOME.—Solely for purposes of the
application of subsection (a) with respect to amounts described
in subsection (d)(1)(A), the taxpayer’s taxable income from
sources without the United States shall be determined by allo-
cating and apportioning—
‘‘(A) any deduction allowed under section 250(a)(1)(B)
(and any deduction allowed under section 164(a)(3) for
taxes imposed on amounts described in section 250(a)(1)(B))
to such income,
‘‘(B) no amount of interest expense or research and
experimental expenditures to such income, and
‘‘(C) any other deduction to such income only if such
deduction is directly allocable to such income.
Any amount or deduction which would (but for subparagraphs
(B) and (C)) have been allocated or apportioned to such income
shall only be allocated or apportioned to income which is from
sources within the United States.’’.
(b) OTHER MODIFICATIONS.—
(1) Section 904(d)(2)(H)(i) is amended by striking ‘‘para-
graph (1)(B)’’ and inserting ‘‘paragraph (1)(D)’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 203
(2) Section 904(d)(4)(C)(ii) is amended by striking ‘‘para-
graph (1)(A)’’ and inserting ‘‘paragraph (1)(C)’’.
(3) Section 951A(f)(1)(A) is amended by striking ‘‘904(h)(1)’’
and inserting ‘‘904(h)’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 904 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID
CREDIT FOR TAXES PROPERLY ATTRIBUTABLE TO
TESTED INCOME.
(a) INCREASE IN DEEMED PAID CREDIT.—
(1) IN GENERAL.—Section 960(d)(1) is amended by striking
‘‘80 percent’’ and inserting ‘‘90 percent’’.
(2) GROSS UP FOR DEEMED PAID FOREIGN TAX CREDIT.—
Section 78 is amended—
(A) by striking ‘‘subsections (a), (b), and (d)’’ and
inserting ‘‘subsections (a) and (d)’’, and
(B) by striking ‘‘80 percent’’ and inserting ‘‘90 percent’’.
(b) DISALLOWANCE OF FOREIGN TAX CREDIT WITH RESPECT TO
DISTRIBUTIONS OF PREVIOUSLY TAXED NET CFC TESTED INCOME.—
Section 960(d) is amended by adding at the end the following
new paragraph:
‘‘(4) DISALLOWANCE OF FOREIGN TAX CREDIT WITH RESPECT
TO DISTRIBUTIONS OF PREVIOUSLY TAXED NET CFC TESTED
INCOME.—No credit shall be allowed under section 901 for
10 percent of any foreign income taxes paid or accrued (or
deemed paid under subsection (b)(1)) with respect to any
amount excluded from gross income under section 959(a) by
reason of an inclusion in gross income under section 951A(a).’’.
(c) EFFECTIVE DATES.— 26 USC 78 note.
(1) IN GENERAL.—The amendments made by subsection
(a) shall apply to taxable years beginning after December 31,
2025.
(2) DISALLOWANCE.—The amendment made by subsection
(b) shall apply to foreign income taxes paid or accrued (or
deemed paid under section 960(b)(1) of the Internal Revenue
Code of 1986) with respect to any amount excluded from gross
income under section 959(a) of such Code by reason of an
inclusion in gross income under section 951A(a) of such Code
after June 28, 2025.
SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVEN-
TORY PRODUCED IN THE UNITED STATES.
(a) IN GENERAL.—Section 904(b), as amended by section 70311,
is amended by adding at the end the following new paragraph:
‘‘(6) SOURCE RULES FOR CERTAIN INVENTORY PRODUCED IN
THE UNITED STATES AND SOLD THROUGH FOREIGN BRANCHES.—
For purposes of this section, if a United States person maintains
an office or other fixed place of business in a foreign country
(determined under rules similar to the rules of section
864(c)(5)), the portion of income which—
‘‘(A) is from the sale or exchange outside the United
States of inventory property (within the meaning of section
865(i)(1))—
‘‘(i) which is produced in the United States,
‘‘(ii) which is for use outside the United States,
and
139 STAT. 204 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(iii) to which the third sentence of section 863(b)
applies, and
‘‘(B) is attributable (determined under rules similar
to the rules of section 864(c)(5)) to such office or other
fixed place of business,
shall be treated as from sources without the United States,
except that the amount so treated shall not exceed 50 percent
of the income from the sale or exchange of such inventory
property.’’.
26 USC 904 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2025.
PART II—FOREIGN-DERIVED DEDUCTION ELI-
GIBLE INCOME AND NET CFC TESTED IN-
COME
SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED
DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED
INCOME.
(a) IN GENERAL.—Section 250(a) is amended—
(1) by striking ‘‘37.5 percent’’ in paragraph (1)(A) and
inserting ‘‘33.34 percent’’,
(2) by striking ‘‘50 percent’’ in paragraph (1)(B) and
inserting ‘‘40 percent’’, and
(3) by striking paragraph (3).
26 USC 250 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME.
(a) SALES OR OTHER DISPOSITIONS OF CERTAIN PROPERTY.—
(1) IN GENERAL.—Section 250(b)(3)(A)(i) is amended—
(A) by striking ‘‘and’’ at the end of subclause (V),
(B) by striking ‘‘over’’ at the end of subclause (VI)
and inserting ‘‘and’’, and
(C) by adding at the end the following new subclause:
‘‘(VII) except as otherwise provided by the Sec-
retary, any income and gain from the sale or other
disposition (including pursuant to the deemed sale
or other deemed disposition or a transaction sub-
ject to section 367(d)) of—
‘‘(aa) intangible property (as defined in
section 367(d)(4)), and
‘‘(bb) any other property of a type that
is subject to depreciation, amortization, or
depletion by the seller, over’’.
(2) CONFORMING AMENDMENT.—Section 250(b)(5)(E) is
amended by inserting ‘‘(other than paragraph (3)(A)(i)(VII))’’
after ‘‘For purposes of this subsection’’.
26 USC 250 note. (3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to sales or other dispositions (including
pursuant to deemed sales or other deemed dispositions or a
transaction subject to section 367(d) of the Internal Revenue
Code of 1986) occurring after June 16, 2025.
(b) EXPENSE APPORTIONMENT LIMITED TO PROPERLY ALLOCABLE
EXPENSES.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 205
(1) IN GENERAL.—Section 250(b)(3)(A)(ii) is amended to read
as follows:
‘‘(ii) expenses and deductions (including taxes),
other than interest expense and research or experi-
mental expenditures, properly allocable to such gross
income.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 250 note.
section shall apply to taxable years beginning after December
31, 2025.
SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME.
(a) TAXATION OF NET CFC TESTED INCOME.—
(1) IN GENERAL.—Section 951A(a) is amended by striking
‘‘global intangible low-taxed income’’ and inserting ‘‘net CFC
tested income’’.
(2) REPEAL OF TAX-FREE DEEMED RETURN ON FOREIGN
INVESTMENTS.—Section 951A, as amended by the preceding
provisions of this Act, is amended by striking subsections (b)
and (d) and by redesignating subsections (c), (e), and (f) as
subsections (b), (c), and (d), respectively.
(3) CONFORMING AMENDMENTS.—
(A)(i) Section 250 is amended by striking ‘‘global intan-
gible low-taxed income’’ each place it appears in subsections
(a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) and inserting ‘‘net CFC
tested income’’.
(ii) The heading for section 250 of such Code is
amended by striking ‘‘GLOBAL INTANGIBLE LOW-TAXED
INCOME’’ and inserting ‘‘NET CFC TESTED INCOME’’.
(iii) The item relating to section 250 in the table of
sections for part VII of subchapter B of chapter 1 of such
Code is amended by striking ‘‘global intangible low-taxed 26 USC
income’’ and inserting ‘‘net CFC tested income’’. prec. 241.
(B) Section 951A(c)(1), as redesignated by paragraph
(2), is amended by striking ‘‘subsections (b), (c)(1)(A), and
(c)(1)(B)’’ and inserting ‘‘subsections (b)(1)(A) and (b)(1)(B)’’.
(C) Section 951A(d), as redesignated by paragraph (2),
is amended—
(i) by striking ‘‘global intangible low-taxed income’’
each place it appears and inserting ‘‘net CFC tested
income’’, and
(ii) by striking ‘‘subsection (c)(1)(A)’’ in paragraph
(2)(B)(ii) and inserting ‘‘subsection (b)(1)(A)’’.
(D) Section 960(d)(2) is amended—
(i) by striking ‘‘global intangible low-taxed income’’
in subparagraph (A) and inserting ‘‘net CFC tested
income’’, and
(ii) by striking ‘‘section 951A(c)(1)(A)’’ in subpara-
graph (B) and inserting ‘‘section 951A(b)(1)(A)’’.
(E)(i) The heading for section 951A is amended by
striking ‘‘GLOBAL INTANGIBLE LOW-TAXED INCOME’’ and
inserting ‘‘NET CFC TESTED INCOME’’.
(ii) The item relating to section 951A in the table
of sections for subpart F of part III of subchapter N of
chapter 1 is amended by striking ‘‘Global intangible low- 26 USC
taxed income’’ and inserting ‘‘Net CFC tested income’’. prec. 951.
(b) DEDUCTION FOR FOREIGN-DERIVED DEDUCTION ELIGIBLE
INCOME.—
139 STAT. 206 PUBLIC LAW 119–21—JULY 4, 2025
(1) IN GENERAL.—Section 250(a)(1)(A) is amended by
striking ‘‘foreign-derived intangible income’’ and inserting ‘‘for-
eign-derived deduction eligible income’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 250(a)(2) is amended by striking ‘‘foreign-
derived intangible income’’ each place it appears and
inserting ‘‘foreign-derived deduction eligible income’’.
(B) Section 250(b), as amended by subsection (a), is
amended—
(i) by striking paragraphs (1) and (2),
(ii) by redesignating paragraphs (4) and (5) as
paragraphs (1) and (2), respectively, and by moving
such paragraphs before paragraph (3),
(iii) in paragraph (2)(B)(ii), as so redesignated, by
striking ‘‘paragraph (4)(B)’’ and inserting ‘‘paragraph
(1)(B)’’, and
(iv) by striking ‘‘INTANGIBLE’’ in the heading
thereof and inserting ‘‘DEDUCTION ELIGIBLE’’.
(C)(i) The heading for section 250 is amended by
striking ‘‘INTANGIBLE’’ in the heading thereof and inserting
‘‘DEDUCTION ELIGIBLE’’.
(ii) The heading for section 172(d)(9) is amended by
striking ‘‘INTANGIBLE’’ and inserting ‘‘DEDUCTION ELIGIBLE’’.
(iii) The item relating to section 250 in the table of
26 USC sections for part VIII of subchapter B of chapter 1 is
prec. 241. amended by striking ‘‘intangible’’ and inserting ‘‘deduction
eligible’’.
26 USC 172 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
PART III—BASE EROSION MINIMUM TAX
SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MIN-
IMUM TAX AMOUNT.
(a) IN GENERAL.—Section 59A(b) is amended—
(1) by striking ‘‘10 percent’’ in paragraph (1) and inserting
‘‘10.5 percent’’, and
(2) by striking paragraph (2) and by redesignating para-
graphs (3) and (4) as paragraphs (2) and (3), respectively.
(b) CONFORMING AMENDMENTS.—
(1) Section 59A(b)(1) is amended by striking ‘‘Except as
provided in paragraphs (2) and (3)’’ and inserting ‘‘Except as
provided in paragraph (2)’’.
(2) Section 59A(b)(2), as redesignated by subsection (a)(2),
is amended by striking ‘‘the percentage otherwise in effect
under paragraphs (1)(A) and (2)(A) shall each be increased’’
and inserting ‘‘the percentages otherwise in effect under para-
graph (1)(A) shall be increased’’.
(3) Section 59A(e)(1)(C) is amended by striking ‘‘in the
case of a taxpayer described in subsection (b)(3)(B)’’ and
inserting ‘‘in the case of a taxpayer described in subsection
(b)(2)(B)’’.
(c) OTHER MODIFICATIONS.—
(1) Section 59A(b)(2)(B)(ii), as redesignated by subsection
(a)(2), is amended by striking ‘‘registered securities dealer’’
and inserting ‘‘securities dealer registered’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 207
(2) Section 59A(h)(2)(B) is amended by striking ‘‘section
6038B(b)(2)’’ and inserting ‘‘section 6038A(b)(2)’’.
(3) Section 59A(i)(2) is amended—
(A) by striking ‘‘subsection (g)’’ and inserting ‘‘sub-
section (h)’’, and
(B) by striking ‘‘subsection (g)(3)’’ and inserting ‘‘sub-
section (h)(3)’’.
(d) EFFECTIVE DATE.—The amendments made by this section 26 USC 59A note.
shall apply to taxable years beginning after December 31, 2025.
PART IV—BUSINESS INTEREST LIMITATION
SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH
INTEREST CAPITALIZATION PROVISIONS.
(a) IN GENERAL.—Section 163(j) is amended by redesignating
paragraphs (10) and (11) as paragraphs (11) and (12) and by
inserting after paragraph (9) the following:
‘‘(10) COORDINATION WITH INTEREST CAPITALIZATION PROVI-
SIONS.—
‘‘(A) IN GENERAL.—In applying this subsection— Applicability.
‘‘(i) the limitation under paragraph (1) shall apply
to business interest without regard to whether the
taxpayer would otherwise deduct such business
interest or capitalize such business interest under an
interest capitalization provision, and
‘‘(ii) any reference in this subsection to a deduction
for business interest shall be treated as including a
reference to the capitalization of business interest.
‘‘(B) AMOUNT ALLOWED APPLIED FIRST TO CAPITALIZED
INTEREST.—The amount allowed after taking into account
the limitation described in paragraph (1)—
‘‘(i) shall be applied first to the aggregate amount
of business interest which would otherwise be capital-
ized, and
‘‘(ii) the remainder (if any) shall be applied to
the aggregate amount of business interest which would
be deducted.
‘‘(C) TREATMENT OF DISALLOWED INTEREST CARRIED
FORWARD.—No portion of any business interest carried for-
ward under paragraph (2) from any taxable year to any
succeeding taxable year shall, for purposes of this title
(including any interest capitalization provision which pre-
viously applied to such portion) be treated as interest to
which an interest capitalization provision applies.
‘‘(D) INTEREST CAPITALIZATION PROVISION.—For pur- Definition.
poses of this section, the term ‘interest capitalization provi-
sion’ means any provision of this subtitle under which
interest—
‘‘(i) is required to be charged to capital account,
or
‘‘(ii) may be deducted or charged to capital
account.’’.
(b) CERTAIN CAPITALIZED INTEREST NOT TREATED AS BUSINESS
INTEREST.—Section 163(j)(5) is amended by adding at the end the
following new sentence: ‘‘Such term shall not include any interest
which is capitalized under section 263(g) or 263A(f).’’.
139 STAT. 208 PUBLIC LAW 119–21—JULY 4, 2025
(c) REGULATORY AUTHORITY.—Section 163(j), as amended by
subsection (a), is amended by redesignating paragraphs (11) and
(12) as paragraphs (12) and (13) and by inserting after paragraph
(10) the following:
Guidance. ‘‘(11) REGULATORY AUTHORITY.—The Secretary shall issue
Determination. such regulations or guidance as may be necessary or appro-
priate to carry out the purposes of this subsection, including
regulations or guidance to determine which business interest
is taken into account under this subsection and section
59A(c)(3).’’.
26 USC 163 note. (d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSI-
NESS INTEREST LIMITATION.
(a) IN GENERAL.—Subparagraph (A) of section 163(j)(8) is
amended—
(1) by striking ‘‘and’’ at the end of clause (iv), and
(2) by adding at the end the following new clause:
‘‘(vi) the amounts included in gross income under
sections 951(a), 951A(a), and 78 (and the portion of
the deductions allowed under sections 245A(a) (by rea-
son of section 964(e)(4)) and 250(a)(1)(B) by reason
of such inclusions), and’’.
26 USC 163 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
PART V—OTHER INTERNATIONAL TAX
REFORMS
SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR
RELATED CONTROLLED FOREIGN CORPORATIONS.
(a) IN GENERAL.—Section 954(c)(6)(C) is amended by striking
‘‘and before January 1, 2026,’’.
26 USC 954 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years of foreign corporations beginning after
December 31, 2025.
SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN DETER-
MINATION OF TAXABLE YEAR OF SPECIFIED FOREIGN
CORPORATIONS.
(a) IN GENERAL.—Section 898(c) is amended by striking para-
graph (2) and redesignating paragraph (3) as paragraph (2).
26 USC 898 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years of specified foreign corporations begin-
ning after November 30, 2025.
(c) TRANSITION RULE.—
Effective date. (1) IN GENERAL.—In the case of a corporation that is a
specified foreign corporation as of November 30, 2025, such
corporation’s first taxable year beginning after such date shall
end at the same time as the first required year (within the
meaning of section 898(c)(1) of the Internal Revenue Code of
1986) ending after such date. If any specified foreign corporation
is required by the amendments made by this section to change
its taxable year for its first taxable year beginning after
November 30, 2025—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 209
(A) such change shall be treated as initiated by such
corporation,
(B) such change shall be treated as having been made
with the consent of the Secretary, and
(C) the Secretary shall issue regulations or other guid- Regulations.
ance for allocating foreign taxes that are paid or accrued Guidance.
Allocations.
in such first taxable year and the succeeding taxable year
among such taxable years in the manner the Secretary
determines appropriate to carry out the purposes of this
section.
(2) SECRETARY.—For purposes of this subsection, the term Definition.
‘‘Secretary’’ means the Secretary of the Treasury or the Sec-
retary’s delegate.
SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBU-
TION OF STOCK OWNERSHIP IN APPLYING CONSTRUC-
TIVE OWNERSHIP RULES.
(a) IN GENERAL.—Section 958(b) is amended—
(1) by inserting after paragraph (3) the following:
‘‘(4) Subparagraphs (A), (B), and (C) of section 318(a)(3)
shall not be applied so as to consider a United States person
as owning stock which is owned by a person who is not a
United States person.’’, and
(2) by striking ‘‘Paragraph (1)’’ in the last sentence and
inserting ‘‘Paragraphs (1) and (4)’’.
(b) FOREIGN CONTROLLED UNITED STATES SHAREHOLDERS.—
Subpart F of part III of subchapter N of chapter 1 is amended
by inserting after section 951A the following new section:
‘‘SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CON- Definitions.
TROLLED UNITED STATES SHAREHOLDERS. 26 USC 951B.
‘‘(a) IN GENERAL.—In the case of any foreign controlled United Applicability.
States shareholder of a foreign controlled foreign corporation—
‘‘(1) this subpart (other than sections 951A, 951(b), and
957) shall be applied with respect to such shareholder (sepa-
rately from, and in addition to, the application of this subpart
without regard to this section)—
‘‘(A) by substituting ‘foreign controlled United States
shareholder’ for ‘United States shareholder’ each place it
appears therein, and
‘‘(B) by substituting ‘foreign controlled foreign corpora-
tion’ for ‘controlled foreign corporation’ each place it
appears therein, and
‘‘(2) section 951A (and such other provisions of this subpart
as provided by the Secretary) shall be applied with respect
to such shareholder—
‘‘(A) by treating each reference to ‘United States share-
holder’ in such section as including a reference to such
shareholder, and
‘‘(B) by treating each reference to ‘controlled foreign
corporation’ in such section as including a reference to
such foreign controlled foreign corporation.
‘‘(b) FOREIGN CONTROLLED UNITED STATES SHAREHOLDER.—For
purposes of this section, the term ‘foreign controlled United States
shareholder’ means, with respect to any foreign corporation, any
United States person which would be a United States shareholder
with respect to such foreign corporation if—
139 STAT. 210 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(1) section 951(b) were applied by substituting ‘more than
50 percent’ for ‘10 percent or more’, and
‘‘(2) section 958(b) were applied without regard to para-
graph (4) thereof.
‘‘(c) FOREIGN CONTROLLED FOREIGN CORPORATION.—For pur-
poses of this section, the term ‘foreign controlled foreign corporation’
means a foreign corporation, other than a controlled foreign corpora-
tion, which would be a controlled foreign corporation if section
957(a) were applied—
‘‘(1) by substituting ‘foreign controlled United States share-
holders’ for ‘United States shareholders’, and
‘‘(2) by substituting ‘section 958(b) (other than paragraph
(4) thereof)’ for ‘section 958(b)’.
Guidance. ‘‘(d) REGULATIONS.—The Secretary shall prescribe such regula-
tions or other guidance as may be necessary or appropriate to
carry out the purposes of this section, including regulations or
other guidance—
‘‘(1) to treat a foreign controlled United States shareholder
or a foreign controlled foreign corporation as a United States
shareholder or as a controlled foreign corporation, respectively,
for purposes of provisions of this title other than this subpart
(including any reporting requirement), and
‘‘(2) with respect to the treatment of foreign controlled
foreign corporations that are passive foreign investment compa-
nies (as defined in section 1297).’’.
(c) CLERICAL AMENDMENT.—The table of sections for subpart
26 USC F of part III of subchapter N of chapter 1 is amended by inserting
prec. 951. after the item relating to section 951A the following new item:
‘‘Sec. 951B. Amounts included in gross income of foreign controlled United States
shareholders.’’.
26 USC 951B (d) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to taxable years of foreign corporations beginning after
December 31, 2025.
26 USC 951B (e) SPECIAL RULE.—
note. (1) IN GENERAL.—Except to the extent provided by the
Secretary of the Treasury (or the Secretary’s delegate), the
effective date of any amendment to the Internal Revenue Code
of 1986 shall be applied by treating references to United States
shareholders as including references to foreign controlled
United States shareholders, and by treating references to con-
trolled foreign corporations as including references to foreign
controlled foreign corporations.
(2) DEFINITIONS.—Any term used in paragraph (1) which
is used in subpart F of part III of subchapter N of chapter
1 of the Internal Revenue Code of 1986 (as amended by this
section) shall have the meaning given such term in such sub-
part.
26 USC 951B (f) NO INFERENCE.—The amendments made by this section
note. shall not be construed to create any inference with respect to
the proper application of any provision of the Internal Revenue
Code of 1986 with respect to taxable years beginning before the
taxable years to which such amendments apply.
SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES.
(a) IN GENERAL.—Subsection (a) of section 951 is amended
to read as follows:
‘‘(a) AMOUNTS INCLUDED.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 211
‘‘(1) IN GENERAL.—If a foreign corporation is a controlled
foreign corporation at any time during a taxable year of the
foreign corporation (in this subsection referred to as the ‘CFC
year’)—
‘‘(A) each United States shareholder which owns
(within the meaning of section 958(a)) stock in such cor-
poration on any day during the CFC year shall include
in gross income such shareholder’s pro rata share (deter-
mined under paragraph (2)) of the corporation’s subpart
F income for the CFC year, and
‘‘(B) each United States shareholder which owns
(within the meaning of section 958(a)) stock in such cor-
poration on the last day, in the CFC year, on which such
corporation is a controlled foreign corporation shall include
in gross income the amount determined under section 956
with respect to such shareholder for the CFC year (but
only to the extent not excluded from gross income under
section 959(a)(2)).
‘‘(2) PRO RATA SHARE OF SUBPART F INCOME.—A United
States shareholder’s pro rata share of a controlled foreign cor-
poration’s subpart F income for a CFC year shall be the portion
of such income which is attributable to—
‘‘(A) the stock of such corporation owned (within the
meaning of section 958(a)) by such shareholder, and
‘‘(B) any period of the CFC year during which—
‘‘(i) such shareholder owned (within the meaning
of section 958(a)) such stock,
‘‘(ii) such shareholder was a United States share-
holder of such corporation, and
‘‘(iii) such corporation was a controlled foreign cor-
poration.
‘‘(3) TAXABLE YEAR OF INCLUSION.—Any amount required
to be included in gross income by a United States shareholder
under paragraph (1) with respect to a CFC year shall be
included in gross income for the shareholder’s taxable year
which includes the last day on which the shareholder owns
(within the meaning of section 958(a)) stock in the controlled
foreign corporation during such CFC year.
‘‘(4) REGULATORY AUTHORITY.—The Secretary shall pre- Guidance.
scribe such regulations or other guidance as may be necessary
or appropriate to carry out the purposes of this subsection,
including regulations or other guidance allowing taxpayers to
elect, or requiring taxpayers, to close the taxable year of a
controlled foreign corporation upon a direct or indirect disposi-
tion of stock of such corporation.’’.
(b) COORDINATION WITH SECTION 951A.—
(1) TESTED INCOME.—Section 951A(b), as redesignated by
section 70323(a)(2), is amended—
(A) in paragraph (1)(A), by striking ‘‘(determined for
each taxable year of such controlled foreign corporation
which ends in or with such taxable year of such United
States shareholder)’’, and
(B) in paragraph (1)(B), by striking ‘‘(determined for
each taxable year of such controlled foreign corporation
which ends in or with such taxable year of such United
States shareholder)’’.
139 STAT. 212 PUBLIC LAW 119–21—JULY 4, 2025
(2) PRO RATA SHARE.—Section 951A(c), as redesignated by
section 70323(a)(2), is amended—
(A) in paragraph (1), by striking ‘‘in which or with
which the taxable year of the controlled foreign corporation
ends’’ and inserting ‘‘determined under section 951(a)(3)’’,
and
(B) in paragraph (2), by striking ‘‘the last day in the
taxable year of such foreign corporation on which such
foreign corporation is a controlled foreign corporation’’ and
inserting ‘‘any day in such taxable year’’.
26 USC 951 note. (c) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by this section
shall apply to taxable years of foreign corporations beginning
after December 31, 2025.
(2) TRANSITION RULE FOR DIVIDENDS.—Except to the extent
provided by the Secretary of the Treasury (or the Secretary’s
delegate), a dividend paid (or deemed paid) by a controlled
foreign corporation shall not be treated as a dividend for pur-
poses of applying section 951(a)(2)(B) of the Internal Revenue
Code of 1986 (as in effect before the amendments made by
this section) if—
(A) such dividend—
(i) was paid (or deemed paid) on or before June
28, 2025, during the taxable year of such controlled
foreign corporation which includes such date and the
United States shareholder described in section
951(a)(1) of such Code (as so in effect) did not own
(within the meaning of section 958(a) of such Code)
the stock of such controlled foreign corporation during
the portion of such taxable year on or before June
28, 2025, or
(ii) was paid (or deemed paid) after June 28, 2025,
and before such controlled foreign corporation’s first
taxable year beginning after December 31, 2025, and
(B) such dividend does not increase the taxable income
of a United States person that is subject to Federal income
tax for the taxable year (including by reason of a dividends
received deduction, an exclusion from gross income, or an
exclusion from subpart F income).
CHAPTER 4—INVESTING IN AMERICAN FAMILIES,
COMMUNITIES, AND SMALL BUSINESSES
Subchapter A—Permanent Investments in Families and
Children
SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE
CREDIT.
(a) INCREASE OF AMOUNT OF QUALIFIED CHILD CARE EXPENDI-
TURES TAKEN INTO ACCOUNT.—Section 45F(a)(1) is amended by
striking ‘‘25 percent’’ and inserting ‘‘40 percent (50 percent in the
case of an eligible small business)’’.
(b) INCREASE OF MAXIMUM CREDIT AMOUNT.—Subsection (b)
of section 45F is amended to read as follows:
‘‘(b) DOLLAR LIMITATION.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 213
‘‘(1) IN GENERAL.—The credit allowable under subsection
(a) for any taxable year shall not exceed $500,000 ($600,000
in the case of an eligible small business).
‘‘(2) INFLATION ADJUSTMENT.—In the case of any taxable Effective date.
year beginning after 2026, the $500,000 and $600,000 amounts
in paragraph (1) shall each be increased by an amount equal
to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
2025’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.’’.
(c) ELIGIBLE SMALL BUSINESS.—Section 45F(c) is amended by
adding at the end the following new paragraph:
‘‘(4) ELIGIBLE SMALL BUSINESS.—The term ‘eligible small Definition.
business’ means a business that meets the gross receipts test
of section 448(c), determined—
‘‘(A) by substituting ‘5-taxable-year’ for ‘3-taxable-year’
in paragraph (1) thereof, and
‘‘(B) by substituting ‘5-year’ for ‘3-year’ in paragraph
(3)(A) thereof.’’.
(d) CREDIT ALLOWED FOR THIRD-PARTY INTERMEDIARIES.—Sec-
tion 45F(c)(1)(A)(iii) is amended by inserting ‘‘, or under a contract
with an intermediate entity that contracts with one or more quali-
fied child care facilities to provide such child care services’’ before
the period at the end.
(e) TREATMENT OF JOINTLY OWNED OR OPERATED CHILD CARE
FACILITY.—Section 45F(c)(2) is amended by adding at the end the
following new subparagraph:
‘‘(C) TREATMENT OF JOINTLY OWNED OR OPERATED
CHILD CARE FACILITY.—A facility shall not fail to be treated
as a qualified child care facility of the taxpayer merely
because such facility is jointly owned or operated by the
taxpayer and other persons.’’.
(f) REGULATIONS AND GUIDANCE.—Section 45F is amended by
adding at the end the following new subsection:
‘‘(g) REGULATIONS AND GUIDANCE.—The Secretary shall issue
such regulations or other guidance as may be necessary to carry
out the purposes of this section, including guidance to carry out
the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).’’.
(g) EFFECTIVE DATE.—The amendments made by this section 26 USC 45F note.
shall apply to amounts paid or incurred after December 31, 2025.
SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT.
(a) IN GENERAL.—Section 23(a) is amended by adding at the
end the following new paragraph:
‘‘(4) PORTION OF CREDIT REFUNDABLE.—So much of the
credit allowed under paragraph (1) as does not exceed $5,000
shall be treated as a credit allowed under subpart C and
not as a credit allowed under this subpart.’’.
(b) ADJUSTMENTS FOR INFLATION.—Section 23(h) is amended
to read as follows:
‘‘(h) ADJUSTMENTS FOR INFLATION.—
‘‘(1) IN GENERAL.—In the case of a taxable year beginning Effective date.
after December 31, 2002, each of the dollar amounts in para-
graphs (3) and (4) of subsection (a) and paragraphs (1) and
139 STAT. 214 PUBLIC LAW 119–21—JULY 4, 2025
(2)(A)(i) of subsection (b) shall be increased by an amount
equal to—
‘‘(A) such dollar amount, multiplied by
Determination. ‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
2001’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
‘‘(2) ROUNDING.—If any amount as increased under para-
graph (1) is not a multiple of $10, such amount shall be rounded
to the nearest multiple of $10.
Applicability. ‘‘(3) SPECIAL RULE FOR REFUNDABLE PORTION.—In the case
of the dollar amount in subsection (a)(4), paragraph (1) shall
be applied—
‘‘(A) by substituting ‘2025’ for ‘2002’ in the matter
preceding subparagraph (A), and
‘‘(B) by substituting ‘calendar year 2024’ for ‘calendar
year 2001’ in subparagraph (B) thereof.’’.
(c) EXCLUSION OF REFUNDABLE PORTION OF CREDIT FROM
CARRYFORWARD.—Section 23(c)(1) is amended by striking ‘‘credit
allowable under subsection (a)’’ and inserting ‘‘portion of the credit
allowable under subsection (a) which is allowed under this subpart’’.
26 USC 23 note. (d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2024.
SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PUR-
POSES OF DETERMINING WHETHER A CHILD HAS SPE-
CIAL NEEDS FOR PURPOSES OF THE ADOPTION CREDIT.
(a) IN GENERAL.—Section 23(d)(3) is amended—
(1) in subparagraph (A), by inserting ‘‘or Indian tribal
government’’ after ‘‘a State’’, and
(2) in subparagraph (B), by inserting ‘‘or Indian tribal
government’’ after ‘‘such State’’.
26 USC 23 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2024.
SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE
PROGRAM.
(a) IN GENERAL.—Section 129(a)(2)(A) is amended by striking
‘‘$5,000 ($2,500’’ and inserting ‘‘$7,500 ($3,750’’.
26 USC 129 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX
CREDIT.
(a) IN GENERAL.—Paragraph (2) of section 21(a) is amended
to read as follows:
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For purposes of
paragraph (1), the term ‘applicable percentage’ means 50 per-
cent—
‘‘(A) reduced (but not below 35 percent) by 1 percentage
point for each $2,000 or fraction thereof by which the
taxpayer’s adjusted gross income for the taxable year
exceeds $15,000, and
‘‘(B) further reduced (but not below 20 percent) by
1 percentage point for each $2,000 ($4,000 in the case
of a joint return) or fraction thereof by which the taxpayer’s
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 215
adjusted gross income for the taxable year exceeds $75,000
($150,000 in the case of a joint return).’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 21 note.
shall apply to taxable years beginning after December 31, 2025.
Subchapter B—Permanent Investments in Students and
Reforms to Tax-exempt Institutions
SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO
SCHOLARSHIP GRANTING ORGANIZATIONS.
(a) ALLOWANCE OF CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS
TO SCHOLARSHIP GRANTING ORGANIZATIONS.—
(1) IN GENERAL.—Subpart A of part IV of subchapter A
of chapter 1 is amended by inserting after section 25E the
following new section:
‘‘SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION 26 USC 25F.
SCHOLARSHIPS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual who
is a citizen or resident of the United States (within the meaning
of section 7701(a)(9)), there shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount
equal to the aggregate amount of qualified contributions made
by the taxpayer during the taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) IN GENERAL.—The credit allowed under subsection (a)
to any taxpayer for any taxable year shall not exceed $1,700.
‘‘(2) REDUCTION BASED ON STATE CREDIT.—The amount
allowed as a credit under subsection (a) for a taxable year
shall be reduced by the amount allowed as a credit on any
State tax return of the taxpayer for qualified contributions
made by the taxpayer during the taxable year.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) COVERED STATE.—The term ‘covered State’ means one
of the States, or the District of Columbia, that, for a calendar
year, voluntarily elects to participate under this section and
to identify scholarship granting organizations in the State,
in accordance with subsection (g).
‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible student’ means
an individual who—
‘‘(A) is a member of a household with an income which,
for the calendar year prior to the date of the application
for a scholarship, is not greater than 300 percent of the
area median gross income (as such term is used in section
42), and
‘‘(B) is eligible to enroll in a public elementary or
secondary school.
‘‘(3) QUALIFIED CONTRIBUTION.—The term ‘qualified con-
tribution’ means a charitable contribution of cash to a scholar-
ship granting organization that uses the contribution to fund
scholarships for eligible students solely within the State in
which the organization is listed pursuant to subsection (g).
‘‘(4) QUALIFIED ELEMENTARY OR SECONDARY EDUCATION
EXPENSE.—The term ‘qualified elementary or secondary edu-
cation expense’ means any expense of an eligible student which
is described in section 530(b)(3)(A).
139 STAT. 216 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(5) SCHOLARSHIP GRANTING ORGANIZATION.—The term
‘scholarship granting organization’ means any organization—
‘‘(A) which—
‘‘(i) is described in section 501(c)(3) and exempt
from tax under section 501(a), and
‘‘(ii) is not a private foundation,
‘‘(B) which prevents the co-mingling of qualified con-
tributions with other amounts by maintaining one or more
separate accounts exclusively for qualified contributions,
‘‘(C) which satisfies the requirements of subsection (d),
and
‘‘(D) which is included on the list submitted for the
applicable covered State under subsection (g) for the
applicable year.
‘‘(d) REQUIREMENTS FOR SCHOLARSHIP GRANTING ORGANIZA-
TIONS.—
‘‘(1) IN GENERAL.—An organization meets the requirements
of this subsection if—
‘‘(A) such organization provides scholarships to 10 or
more students who do not all attend the same school,
‘‘(B) such organization spends not less than 90 percent
of the income of the organization on scholarships for eligible
students,
‘‘(C) such organization does not provide scholarships
for any expenses other than qualified elementary or sec-
ondary education expenses,
‘‘(D) such organization provides a scholarship to eligible
students with a priority for—
‘‘(i) students awarded a scholarship the previous
school year, and
‘‘(ii) after application of clause (i), any eligible stu-
dents who have a sibling who was awarded a scholar-
ship from such organization,
‘‘(E) such organization does not earmark or set aside
contributions for scholarships on behalf of any particular
student, and
‘‘(F) such organization—
‘‘(i) verifies the annual household income and
family size of eligible students who apply for scholar-
ships to ensure such students meet the requirement
of subsection (c)(2)(A), and
‘‘(ii) limits the awarding of scholarships to eligible
students who are a member of a household for which
the income does not exceed the amount established
under subsection (c)(2)(A).
‘‘(2) PROHIBITION ON SELF-DEALING.—
‘‘(A) IN GENERAL.—A scholarship granting organization
may not award a scholarship to any disqualified person.
‘‘(B) DISQUALIFIED PERSON.—For purposes of this para-
graph, a disqualified person shall be determined pursuant
to rules similar to the rules of section 4946.
‘‘(e) DENIAL OF DOUBLE BENEFIT.—Any qualified contribution
for which a credit is allowed under this section shall not be taken
into account as a charitable contribution for purposes of section
170.
‘‘(f) CARRYFORWARD OF UNUSED CREDIT.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 217
‘‘(1) IN GENERAL.—If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of
the credits allowable under this subpart (other than this sec-
tion, section 23, and section 25D), such excess shall be carried
to the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.
‘‘(2) LIMITATION.—No credit may be carried forward under
this subsection to any taxable year following the fifth taxable
year after the taxable year in which the credit arose. For
purposes of the preceding sentence, credits shall be treated
as used on a first-in first-out basis.
‘‘(g) STATE LIST OF SCHOLARSHIP GRANTING ORGANIZATIONS.—
‘‘(1) LIST.—
‘‘(A) IN GENERAL.—Not later than January 1 of each Deadlines.
calendar year (or, with respect to the first calendar year
for which this section applies, as early as practicable),
a State that voluntarily elects to participate under this
section shall provide to the Secretary a list of the scholar-
ship granting organizations that meet the requirements
described in subsection (c)(5) and are located in the State.
‘‘(B) PROCESS.—The election under this paragraph shall
be made by the Governor of the State or by such other
individual, agency, or entity as is designated under State
law to make such elections on behalf of the State with
respect to Federal tax benefits.
‘‘(2) CERTIFICATION.—Each list submitted under paragraph
(1) shall include a certification that the individual, agency,
or entity submitting such list on behalf of the State has the
authority to perform this function.
‘‘(h) REGULATIONS AND GUIDANCE.—The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this section, including regula-
tions or other guidance—
‘‘(1) providing for enforcement of the requirements under
subsections (d) and (g), and
‘‘(2) with respect to recordkeeping or information reporting
for purposes of administering the requirements of this section.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 25(e)(1)(C) is amended by striking ‘‘and
25D’’ and inserting ‘‘25D, and 25F’’.
(B) The table of sections for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting 26 USC
after the item relating to section 25E the following new prec. 21.
item:
‘‘Sec. 25F. Qualified elementary and secondary education scholarships.’’.
(b) EXCLUSION FROM GROSS INCOME FOR SCHOLARSHIPS FOR
QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF
ELIGIBLE STUDENTS.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1
is amended by inserting before section 140 the following new
section:
‘‘SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SEC- 26 USC 139K.
ONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS.
‘‘(a) IN GENERAL.—In the case of an individual, gross income
shall not include any amounts provided to such individual or any
139 STAT. 218 PUBLIC LAW 119–21—JULY 4, 2025
dependent of such individual pursuant to a scholarship for qualified
elementary or secondary education expenses of an eligible student
which is provided by a scholarship granting organization.
‘‘(b) DEFINITIONS.—In this section, the terms ‘qualified
elementary or secondary education expense’, ‘eligible student’, and
‘scholarship granting organization’ have the same meaning given
such terms under section 25F(c).’’.
(2) CONFORMING AMENDMENT.—The table of sections for
26 USC part III of subchapter B of chapter 1 is amended by inserting
prec. 101. before the item relating to section 140 the following new item:
‘‘Sec. 139K. Scholarships for qualified elementary or secondary education expenses
of eligible students.’’.
26 USC 25 note. (c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to
taxable years ending after December 31, 2026.
(2) EXCLUSION FROM GROSS INCOME.—The amendments
made by subsection (b) shall apply to amounts received after
December 31, 2026, in taxable years ending after such date.
SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT
LOANS.
(a) IN GENERAL.—Section 127(c)(1)(B) is amended by striking
‘‘in the case of payments made before January 1, 2026,’’.
(b) INFLATION ADJUSTMENT.—Section 127 is amended—
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following new sub-
section:
‘‘(d) INFLATION ADJUSTMENT.—
Effective date. ‘‘(1) IN GENERAL.—In the case of any taxable year beginning
after 2026, both of the $5,250 amounts in subsection (a)(2)
shall each be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
Determination. ‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
2025’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
‘‘(2) ROUNDING.—If any increase under paragraph (1) is
not a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.’’.
26 USC 127 note. (c) EFFECTIVE DATE.—The amendment made by this section
shall apply to payments made after December 31, 2025.
SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER
EDUCATION EXPENSES FOR PURPOSES OF 529
ACCOUNTS.
(a) IN GENERAL.—
(1) IN GENERAL.—Section 529(c)(7) is amended to read as
follows:
‘‘(7) TREATMENT OF ELEMENTARY AND SECONDARY TUI-
Definition. TION.—Any reference in this section to the term ‘qualified
higher education expense’ shall include a reference to the fol-
lowing expenses in connection with enrollment or attendance
at, or for students enrolled at or attending, an elementary
or secondary public, private, or religious school:
‘‘(A) Tuition.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 219
‘‘(B) Curriculum and curricular materials.
‘‘(C) Books or other instructional materials.
‘‘(D) Online educational materials.
‘‘(E) Tuition for tutoring or educational classes outside
of the home, including at a tutoring facility, but only if
the tutor or instructor is not related to the student and—
‘‘(i) is licensed as a teacher in any State,
‘‘(ii) has taught at an eligible educational institu-
tion, or
‘‘(iii) is a subject matter expert in the relevant
subject.
‘‘(F) Fees for a nationally standardized norm-referenced
achievement test, an advanced placement examination, or
any examinations related to college or university admission.
‘‘(G) Fees for dual enrollment in an institution of higher
education.
‘‘(H) Educational therapies for students with disabil-
ities provided by a licensed or accredited practitioner or
provider, including occupational, behavioral, physical, and
speech-language therapies.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 529 note.
section shall apply to distributions made after the date of
the enactment of this Act.
(b) INCREASE IN LIMITATION.—
(1) IN GENERAL.—The last sentence of section 529(e)(3)
is amended by striking ‘‘$10,000’’ and inserting ‘‘$20,000’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 529 note.
section shall apply to taxable years beginning after December
31, 2025.
SEC. 70414. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES Definitions.
TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES
FOR PURPOSES OF 529 ACCOUNTS.
(a) IN GENERAL.—Section 529(e)(3) is amended by adding at
the end the following new subparagraph:
‘‘(C) CERTAIN POSTSECONDARY CREDENTIALING
EXPENSES.—The term ‘qualified higher education expenses’
includes qualified postsecondary credentialing expenses (as
defined in subsection (f)).’’.
(b) QUALIFIED POSTSECONDARY CREDENTIALING EXPENSES.—
Section 529 is amended by redesignating subsection (f) as subsection
(g) and by inserting after subsection (e) the following new sub-
section:
‘‘(f) QUALIFIED POSTSECONDARY CREDENTIALING EXPENSES.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified postsecondary
credentialing expenses’ means—
‘‘(A) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a designated
beneficiary in a recognized postsecondary credential pro-
gram, or any other expense incurred in connection with
enrollment in or attendance at a recognized postsecondary
credential program if such expense would, if incurred in
connection with enrollment or attendance at an eligible
educational institution, be covered under subsection
(e)(3)(A),
139 STAT. 220 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(B) fees for testing if such testing is required to obtain
or maintain a recognized postsecondary credential, and
‘‘(C) fees for continuing education if such education
is required to maintain a recognized postsecondary creden-
tial.
‘‘(2) RECOGNIZED POSTSECONDARY CREDENTIAL PROGRAM.—
The term ‘recognized postsecondary credential program’ means
any program to obtain a recognized postsecondary credential
if—
‘‘(A) such program is included on a State list prepared
under section 122(d) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3152(d)),
‘‘(B) such program is listed in the public directory
of the Web Enabled Approval Management System
(WEAMS) of the Veterans Benefits Administration, or suc-
cessor directory such program,
‘‘(C) an examination (developed or administered by an
organization widely recognized as providing reputable
credentials in the occupation) is required to obtain or main-
tain such credential and such organization recognizes such
program as providing training or education which prepares
individuals to take such examination, or
‘‘(D) such program is identified by the Secretary, after
consultation with the Secretary of Labor, as being a rep-
utable program for obtaining a recognized postsecondary
credential for purposes of this subparagraph.
‘‘(3) RECOGNIZED POSTSECONDARY CREDENTIAL.—The term
‘recognized postsecondary credential’ means—
‘‘(A) any postsecondary employment credential that is
industry recognized and is—
‘‘(i) any postsecondary employment credential
issued by a program that is accredited by the Institute
for Credentialing Excellence, the National Commission
on Certifying Agencies, or the American National
Standards Institute,
‘‘(ii) any postsecondary employment credential that
is included in the Credentialing Opportunities On-Line
(COOL) directory of credentialing programs (or suc-
cessor directory) maintained by the Department of
Defense or by any branch of the Armed Forces, or
‘‘(iii) any postsecondary employment credential
identified for purposes of this clause by the Secretary,
after consultation with the Secretary of Labor, as being
industry recognized,
‘‘(B) any certificate of completion of an apprenticeship
that is registered and certified with the Secretary of Labor
under the Act of August 16, 1937 (commonly known as
the ‘National Apprenticeship Act’; 50 Stat. 664, chapter
663; 29 U.S.C. 50 et seq.),
‘‘(C) any occupational or professional license issued
or recognized by a State or the Federal Government (and
any certification that satisfies a condition for obtaining
such a license), and
‘‘(D) any recognized postsecondary credential as defined
in section 3(52) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3102(52)), provided through a pro-
gram described in paragraph (2)(A).’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 221
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 529 note.
shall apply to distributions made after the date of the enactment
of this Act.
SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME
OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES.
(a) IN GENERAL.—Section 4968 is amended to read as follows:
‘‘SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE
COLLEGES AND UNIVERSITIES.
‘‘(a) TAX IMPOSED.—There is hereby imposed on each applicable Applicability.
educational institution for the taxable year a tax equal to the Definitions.
applicable percentage of the net investment income of such institu-
tion for the taxable year.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of this section,
the term ‘applicable percentage’ means—
‘‘(1) 1.4 percent in the case of an institution with a student
adjusted endowment of at least $500,000, and not in excess
of $750,000,
‘‘(2) 4 percent in the case of an institution with a student
adjusted endowment in excess of $750,000, and not in excess
of $2,000,000, and
‘‘(3) 8 percent in the case of an institution with a student
adjusted endowment in excess of $2,000,000.
‘‘(c) APPLICABLE EDUCATIONAL INSTITUTION.—For purposes of
this subchapter, the term ‘applicable educational institution’ means
an eligible educational institution (as defined in section 25A(f)(2))—
‘‘(1) which had at least 3,000 tuition-paying students during
the preceding taxable year,
‘‘(2) more than 50 percent of the tuition-paying students
of which are located in the United States,
‘‘(3) the student adjusted endowment of which is at least
$500,000, and
‘‘(4) which is not described in the first sentence of section
511(a)(2)(B) (relating to State colleges and universities).
‘‘(d) STUDENT ADJUSTED ENDOWMENT.—For purposes of this
section, the term ‘student adjusted endowment’ means, with respect
to any institution for any taxable year—
‘‘(1) the aggregate fair market value of the assets of such
institution (determined as of the end of the preceding taxable
year), other than those assets which are used directly in car-
rying out the institution’s exempt purpose, divided by
‘‘(2) the number of students of such institution.
‘‘(e) DETERMINATION OF NUMBER OF STUDENTS.—For purposes
of subsections (c) and (d), the number of students of an institution
(including for purposes of determining the number of students
at a particular location) shall be based on the daily average number
of full-time students attending such institution (with part-time stu-
dents taken into account on a full-time student equivalent basis).
‘‘(f) NET INVESTMENT INCOME.—For purposes of this section—
‘‘(1) IN GENERAL.—Net investment income shall be deter-
mined under rules similar to the rules of section 4940(c).
‘‘(2) OVERRIDE OF CERTAIN REGULATORY EXCEPTIONS.—
‘‘(A) STUDENT LOAN INTEREST.—Net investment income
shall be determined by taking into account any interest
income from a student loan made by the applicable edu-
cational institution (or any related organization) as gross
investment income.
139 STAT. 222 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(B) FEDERALLY-SUBSIDIZED ROYALTY INCOME.—
‘‘(i) IN GENERAL.—Net investment income shall be
determined by taking into account any Federally-sub-
sidized royalty income as gross investment income.
‘‘(ii) FEDERALLY-SUBSIDIZED ROYALTY INCOME.—For
purposes of this subparagraph—
‘‘(I) IN GENERAL.—The term ‘Federally-sub-
sidized royalty income’ means any otherwise-regu-
latory-exempt royalty income if any Federal funds
were used in the research, development, or cre-
ation of the patent, copyright, or other intellectual
or intangible property from which such royalty
income is derived.
‘‘(II) OTHERWISE-REGULATORY-EXEMPT ROYALTY
INCOME.—For purposes of this subparagraph, the
term ‘otherwise-regulatory-exempt royalty income’
means royalty income which (but for this subpara-
graph) would not be taken into account as gross
investment income by reason of being derived from
patents, copyrights, or other intellectual or intan-
gible property which resulted from the work of
students or faculty members in their capacities
as such with the applicable educational institution.
‘‘(III) FEDERAL FUNDS.—The term ‘Federal
funds’ includes any grant made by, and any pay-
ment made under any contract with, any Federal
agency to the applicable educational institution,
any related organization, or any student or faculty
member referred to in subclause (II).
‘‘(g) ASSETS AND NET INVESTMENT INCOME OF RELATED
ORGANIZATIONS.—
‘‘(1) IN GENERAL.—For purposes of subsections (d) and (f),
assets and net investment income of any related organization
with respect to an educational institution shall be treated as
assets and net investment income, respectively, of the edu-
cational institution, except that—
‘‘(A) no such amount shall be taken into account with
respect to more than 1 educational institution, and
‘‘(B) unless such organization is controlled by such
institution or is described in section 509(a)(3) with respect
to such institution for the taxable year, assets and net
investment income which are not intended or available
for the use or benefit of the educational institution shall
not be taken into account.
‘‘(2) RELATED ORGANIZATION.—For purposes of this sub-
section, the term ‘related organization’ means, with respect
to an educational institution, any organization which—
‘‘(A) controls, or is controlled by, such institution,
‘‘(B) is controlled by 1 or more persons which also
control such institution, or
‘‘(C) is a supported organization (as defined in section
509(f)(3)), or an organization described in section 509(a)(3),
during the taxable year with respect to such institution.
Guidance. ‘‘(h) REGULATIONS.—The Secretary shall prescribe such regula-
tions or other guidance as may be necessary to prevent avoidance
of the tax under this section, including regulations or other guidance
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 223
to prevent avoidance of such tax through the restructuring of endow-
ment funds or other arrangements designed to reduce or eliminate
the value of net investment income or assets subject to the tax
imposed by this section.’’.
(b) REQUIREMENT TO REPORT CERTAIN INFORMATION WITH
RESPECT TO APPLICATION OF EXCISE TAX BASED ON INVESTMENT
INCOME OF PRIVATE COLLEGES AND UNIVERSITIES.—Section 6033
is amended by redesignating subsection (o) as subsection (p) and
by inserting after subsection (n) the following new subsection:
‘‘(o) REQUIREMENT TO REPORT CERTAIN INFORMATION WITH
RESPECT TO EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE
COLLEGES AND UNIVERSITIES.—Each applicable educational institu-
tion described in section 4968(c) which is subject to the require-
ments of subsection (a) shall include on the return required under
subsection (a)—
‘‘(1) the number of tuition-paying students taken into
account under section 4968(c), and
‘‘(2) the number of students of such institution (determined
under the rules of section 4968(e)).’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 4968
shall apply to taxable years beginning after December 31, 2025. note.
SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSA-
TION WITHIN TAX-EXEMPT ORGANIZATIONS.
(a) IN GENERAL.—Section 4960(c)(2) is amended to read as
follows:
‘‘(2) COVERED EMPLOYEE.—For purposes of this section, the Definition.
term ‘covered employee’ means any employee of an applicable
tax-exempt organization (or any predecessor of such an
organization) and any former employee of such an organization
(or predecessor) who was such an employee during any taxable
year beginning after December 31, 2016.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 4960
shall apply to taxable years beginning after December 31, 2025. note.
Subchapter C—Permanent Investments in Community
Development
SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPOR-
TUNITY ZONES.
(a) DECENNIAL DESIGNATIONS.—
(1) DETERMINATION PERIOD.—Section 1400Z-1(c)(2)(B) is
amended by striking ‘‘beginning on the date of the enactment
of the Tax Cuts and Jobs Act’’ and inserting ‘‘beginning on
the decennial determination date’’.
(2) DECENNIAL DETERMINATION DATE.—Section 1400Z-
1(c)(2) is amended by adding at the end the following new
subparagraph:
‘‘(C) DECENNIAL DETERMINATION DATE.—The term Definition.
‘decennial determination date’ means—
‘‘(i) July 1, 2026, and
‘‘(ii) each July 1 of the year that is 10 years after
the preceding decennial determination date under this
subparagraph.’’.
(3) REPEAL OF SPECIAL RULE FOR PUERTO RICO.—Section
1400Z-1(b) is amended by striking paragraph (3).
139 STAT. 224 PUBLIC LAW 119–21—JULY 4, 2025
(4) LIMITATION ON NUMBER OF DESIGNATIONS.—Section
1400Z-1(d)(1) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘and subsection (b)(3)’’, and
(ii) by inserting ‘‘during any period’’ after ‘‘the
number of population census tracts in a State that
may be designated as qualified opportunity zones
under this section’’, and
(B) in paragraph (2), by inserting ‘‘during any period’’
before the period at the end.
26 USC 1400Z–1 (5) EFFECTIVE DATES.—
note. (A) IN GENERAL.—Except as provided in subparagraph
(B), the amendments made by this subsection shall take
effect on the date of the enactment of this Act.
(B) PUERTO RICO.—The amendment made by para-
graph (3) shall take effect on December 31, 2026.
(b) QUALIFICATION FOR DESIGNATIONS.—
(1) DETERMINATION OF LOW-INCOME COMMUNITIES.—Section
1400Z-1(c) is amended by striking all that precedes paragraph
(2) and inserting the following:
‘‘(c) OTHER DEFINITIONS.—For purposes of this section—
‘‘(1) LOW-INCOME COMMUNITIES.—The term ‘low-income
community’ means any population census tract if—
‘‘(A) such population census tract has a median family
income that—
‘‘(i) in the case of a population census tract not
located within a metropolitan area, does not exceed
70 percent of the statewide median family income,
or
‘‘(ii) in the case of a population census tract located
within a metropolitan area, does not exceed 70 percent
of the metropolitan area median family income, or
‘‘(B) such population census tract—
‘‘(i) has a poverty rate of at least 20 percent, and
‘‘(ii) has a median family income that—
‘‘(I) in the case of a population census tract
not located within a metropolitan area, does not
exceed 125 percent of the statewide median family
income, or
‘‘(II) in the case of a population census tract
located within a metropolitan area, does not exceed
125 percent of the metropolitan area median
family income.’’.
(2) REPEAL OF RULE FOR CONTIGUOUS CENSUS TRACTS.—
Section 1400Z-1 is amended by striking subsection (e) and
by redesignating subsection (f) as subsection (e).
(3) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.—Section
1400Z-1(e), as redesignated by paragraph (2), is amended to
read as follows:
‘‘(e) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.—
‘‘(1) IN GENERAL.—A designation as a qualified opportunity
zone shall remain in effect for the period beginning on the
applicable start date and ending on the day before the date
that is 10 years after the applicable start date.
Definition. ‘‘(2) APPLICABLE START DATE.—For purposes of this section,
the term ‘applicable start date’ means, with respect to any
qualified opportunity zone designated under this section, the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 225
January 1 following the date on which such qualified oppor-
tunity zone was certified and designated by the Secretary under
subsection (b)(1)(B).’’.
(4) EFFECTIVE DATE.—The amendments made by this sub- 26 USC 1400Z–1
section shall apply to areas designated under section 1400Z- note.
1 of the Internal Revenue Code of 1986 after the date of
the enactment of this Act.
(c) APPLICATION OF SPECIAL RULES FOR CAPITAL GAINS.—
(1) REPEAL OF SUNSET ON ELECTION.—Section 1400Z-2(a)(2)
is amended to read as follows:
‘‘(2) ELECTION.—No election may be made under paragraph
(1) with respect to a sale or exchange if an election previously
made with respect to such sale or exchange is in effect.’’.
(2) MODIFICATION OF RULES FOR DEFERRAL OF GAIN.—Sec-
tion 1400Z-2(b) is amended to read as follows:
‘‘(b) DEFERRAL OF GAIN INVESTED IN OPPORTUNITY ZONE PROP-
ERTY.—
‘‘(1) YEAR OF INCLUSION.—Gain to which subsection Applicability.
(a)(1)(B) applies shall be included in gross income in the taxable
year which includes the earlier of—
‘‘(A) the date on which such investment is sold or
exchanged, or
‘‘(B) the date which is 5 years after the date the invest-
ment in the qualified opportunity fund was made.
‘‘(2) AMOUNT INCLUDIBLE.—
‘‘(A) IN GENERAL.—The amount of gain included in
gross income under subsection (a)(1)(B) shall be the excess
of—
‘‘(i) the lesser of the amount of gain excluded under
subsection (a)(1)(A) or the fair market value of the
investment as determined as of the date described
in paragraph (1), over
‘‘(ii) the taxpayer’s basis in the investment.
‘‘(B) DETERMINATION OF BASIS.—
‘‘(i) IN GENERAL.—Except as otherwise provided
in this subparagraph or subsection (c), the taxpayer’s
basis in the investment shall be zero.
‘‘(ii) INCREASE FOR GAIN RECOGNIZED UNDER SUB-
SECTION (a)(1)(B).—The basis in the investment shall
be increased by the amount of gain recognized by rea-
son of subsection (a)(1)(B) with respect to such invest-
ment.
‘‘(iii) INVESTMENTS HELD FOR 5 YEARS.—
‘‘(I) IN GENERAL.—In the case of any invest-
ment held for at least 5 years, the basis of such
investment shall be increased by an amount equal
to 10 percent (30 percent in the case of any invest-
ment in a qualified rural opportunity fund) of the
amount of gain deferred by reason of subsection
(a)(1)(A).
‘‘(II) APPLICATION OF INCREASE.—For purposes
of this subsection, any increase in basis under
this clause shall be treated as occurring before
the date described in paragraph (1)(B).
‘‘(C) QUALIFIED RURAL OPPORTUNITY FUND.—For pur- Definitions.
poses of subparagraph (B)(iii)—
139 STAT. 226 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(i) QUALIFIED RURAL OPPORTUNITY FUND.—The
term ‘qualified rural opportunity fund’ means a quali-
fied opportunity fund that holds at least 90 percent
of its assets in qualified opportunity zone property
which—
‘‘(I) is qualified opportunity zone business
property substantially all of the use of which,
during substantially all of the fund’s holding period
for such property, was in a qualified opportunity
zone comprised entirely of a rural area, or
‘‘(II) is qualified opportunity zone stock, or
a qualified opportunity zone partnership interest,
in a qualified opportunity zone business in which
substantially all of the tangible property owned
or leased is qualified opportunity zone business
property described in subsection (d)(3)(A)(i) and
substantially all the use of which is in a qualified
opportunity zone comprised entirely of a rural
area.
For purposes of the preceding sentence, property held
in the fund shall be measured under rules similar
to the rules of subsection (d)(1).
‘‘(ii) RURAL AREA.—The term ‘rural area’ means
any area other than—
‘‘(I) a city or town that has a population of
greater than 50,000 inhabitants, and
‘‘(II) any urbanized area contiguous and adja-
cent to a city or town described in subclause (I).’’.
(3) SPECIAL RULE FOR INVESTMENTS HELD AT LEAST 10
YEARS.—Section 1400Z-2(c) is amended by striking ‘‘makes an
election under this clause’’ and all that follows and inserting
‘‘makes an election under this subsection, the basis of such
investment shall be equal to—
‘‘(A) in the case of an investment sold before the date
that is 30 years after the date of the investment, the
fair market value of such investment on the date such
investment is sold or exchanged, or
‘‘(B) in any other case, the fair market value of such
investment on the date that is 30 years after the date
of the investment.’’.
(4) DETERMINATION OF QUALIFIED OPPORTUNITY ZONE PROP-
ERTY.—
(A) QUALIFIED OPPORTUNITY ZONE BUSINESS PROP-
ERTY.—Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking
‘‘December 31, 2017’’ and inserting ‘‘the applicable start
date (as defined in section 1400Z-1(e)(2)) with respect to
the qualified opportunity zone described in subclause (III)’’.
(B) QUALIFIED OPPORTUNITY ZONE STOCK AND PARTNER-
SHIP INTERESTS.—Section 1400Z-2(d)(2) is amended—
(i) by striking ‘‘December 31, 2017,’’ each place
it appears in subparagraphs (B)(i)(I) and (C)(i) and
inserting ‘‘the applicable date’’, and
(ii) by adding at the end the following new
subparagraph:
Definition. ‘‘(E) APPLICABLE DATE.—For purposes of this subpara-
graph, the term ‘applicable date’ means, with respect to
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 227
any corporation or partnership which is a qualified oppor-
tunity zone business, the earliest date described in subpara-
graph (D)(i)(I) with respect to the qualified opportunity
zone business property held by such qualified opportunity
zone business.’’.
(C) SPECIAL RULE FOR IMPROVEMENT OF EXISTING
STRUCTURES IN RURAL AREAS.—Section 1400Z–2(d)(2)(D)(ii)
is amended by inserting ‘‘(50 percent of such adjusted basis
in the case of property in a qualified opportunity zone
comprised entirely of a rural area (as defined in subsection
(b)(2)(C)(ii))’’ after ‘‘the adjusted basis of such property’’.
(5) EFFECTIVE DATES.— 26 USC 1400Z–2
(A) IN GENERAL.—Except as otherwise provided in this note.
paragraph, the amendments made by this subsection shall
apply to amounts invested in qualified opportunity funds
after December 31, 2026.
(B) ACQUISITION OF QUALIFIED OPPORTUNITY ZONE
PROPERTY.—The amendments made by subparagraphs (A)
and (B) of paragraph (4) shall apply to property acquired
after December 31, 2026.
(C) SUBSTANTIAL IMPROVEMENT.—The amendment
made by paragraph (4)(C) shall take effect on the date
of the enactment of this Act.
(d) INFORMATION REPORTING ON QUALIFIED OPPORTUNITY
FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.—
(1) FILING REQUIREMENTS FOR FUNDS AND INVESTORS.—
Subpart A of part III of subchapter A of chapter 61 is amended
by inserting after section 6039J the following new sections:
‘‘SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY 26 USC 6039K.
FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.
‘‘(a) IN GENERAL.—Every qualified opportunity fund shall file
an annual return (at such time and in such manner as the Secretary
may prescribe) containing the information described in subsection
(b).
‘‘(b) INFORMATION FROM QUALIFIED OPPORTUNITY FUNDS.—The
information described in this subsection is—
‘‘(1) the name, address, and taxpayer identification number
of the qualified opportunity fund,
‘‘(2) whether the qualified opportunity fund is organized
as a corporation or a partnership,
‘‘(3) the value of the total assets held by the qualified
opportunity fund as of each date described in section 1400Z–
2(d)(1),
‘‘(4) the value of all qualified opportunity zone property
held by the qualified opportunity fund on each such date,
‘‘(5) with respect to each investment held by the qualified
opportunity fund in qualified opportunity zone stock or a quali-
fied opportunity zone partnership interest—
‘‘(A) the name, address, and taxpayer identification
number of the corporation in which such stock is held
or the partnership in which such interest is held, as the
case may be,
‘‘(B) each North American Industry Classification
System (NAICS) code that applies to the trades or
businesses conducted by such corporation or partnership,
139 STAT. 228 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(C) the population census tract or population census
tracts in which the qualified opportunity zone business
property of such corporation or partnership is located,
‘‘(D) the amount of the investment in such stock or
partnership interest as of each date described in section
1400Z–2(d)(1),
‘‘(E) the value of tangible property held by such cor-
poration or partnership on each such date which is owned
by such corporation or partnership,
‘‘(F) the value of tangible property held by such cor-
poration or partnership on each such date which is leased
by such corporation or partnership,
‘‘(G) the approximate number of residential units (if
any) for any real property held by such corporation or
partnership, and
‘‘(H) the approximate average monthly number of full-
time equivalent employees of such corporation or partner-
ship for the year (within numerical ranges identified by
the Secretary) or such other indication of the employment
impact of such corporation or partnership as determined
appropriate by the Secretary,
‘‘(6) with respect to the items of qualified opportunity zone
business property held by the qualified opportunity fund—
‘‘(A) the North American Industry Classification
System (NAICS) code that applies to the trades or
businesses in which such property is held,
‘‘(B) the population census tract in which the property
is located,
‘‘(C) whether the property is owned or leased,
‘‘(D) the aggregate value of the items of qualified oppor-
tunity zone property held by the qualified opportunity fund
as of each date described in section 1400Z–2(d)(1), and
‘‘(E) in the case of real property, the number of residen-
tial units (if any),
‘‘(7) the approximate average monthly number of full-time
equivalent employees for the year of the trades or businesses
of the qualified opportunity fund in which qualified opportunity
zone business property is held (within numerical ranges identi-
fied by the Secretary) or such other indication of the employ-
ment impact of such trades or businesses as determined appro-
priate by the Secretary,
‘‘(8) with respect to each person who disposed of an invest-
ment in the qualified opportunity fund during the year—
‘‘(A) the name, address, and taxpayer identification
number of such person,
‘‘(B) the date or dates on which the investment disposed
was acquired, and
‘‘(C) the date or dates on which any such investment
was disposed and the amount of the investment disposed,
and
‘‘(9) such other information as the Secretary may require.
‘‘(c) STATEMENT REQUIRED TO BE FURNISHED TO INVESTORS.—
Every person required to make a return under subsection (a) shall
furnish to each person whose name is required to be set forth
in such return by reason of subsection (b)(8) (at such time and
in such manner as the Secretary may prescribe) a written statement
showing—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 229
‘‘(1) the name, address, and phone number of the informa-
tion contact of the person required to make such return, and
‘‘(2) the information required to be shown on such return
by reason of subsection (b)(8) with respect to the person whose
name is required to be so set forth.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) IN GENERAL.—Any term used in this section which
is also used in subchapter Z of chapter 1 shall have the meaning
given such term under such subchapter.
‘‘(2) FULL-TIME EQUIVALENT EMPLOYEES.—The term ‘full-
time equivalent employees’ means, with respect to any month,
the sum of—
‘‘(A) the number of full-time employees (as defined
in section 4980H(c)(4)) for the month, plus
‘‘(B) the number of employees determined (under rules
similar to the rules of section 4980H(c)(2)(E)) by dividing
the aggregate number of hours of service of employees
who are not full-time employees for the month by 120.
‘‘(e) APPLICATION TO QUALIFIED RURAL OPPORTUNITY FUNDS.—
Every qualified rural opportunity fund (as defined in section 1400Z–
2(b)(2)(C)) shall file the annual return required under subsection
(a), and the statements required under subsection (c), applied—
‘‘(1) by substituting ‘qualified rural opportunity’ for ‘quali-
fied opportunity’ each place it appears,
‘‘(2) by substituting ‘section 1400Z–2(b)(2)(C)’ for ‘section
1400Z–2(d)(1)’ each place it appears, and
‘‘(3) by treating any reference (after the application of para-
graph (1)) to qualified rural opportunity zone stock, a qualified
rural opportunity zone partnership interest, a qualified rural
opportunity zone business, or qualified opportunity zone busi-
ness property as stock, an interest, a business, or property,
respectively, described in subclause (I) or (II), as the case
may be, of section 1400Z–2(b)(2)(C)(i).
‘‘SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPOR- 26 USC 6039L.
TUNITY ZONE BUSINESSES AND QUALIFIED RURAL
OPPORTUNITY ZONE BUSINESSES.
‘‘(a) IN GENERAL.—Every applicable qualified opportunity zone Statement.
business shall furnish to the qualified opportunity fund described Regulations.
in subsection (b) a written statement at such time, in such manner,
and setting forth such information as the Secretary may by regula-
tions prescribe for purposes of enabling such qualified opportunity
fund to meet the requirements of section 6039K(b)(5).
‘‘(b) APPLICABLE QUALIFIED OPPORTUNITY ZONE BUSINESS.—
For purposes of subsection (a), the term ‘applicable qualified oppor- Definition.
tunity zone business’ means any qualified opportunity zone busi-
ness—
‘‘(1) which is a trade or business of a qualified opportunity
fund,
‘‘(2) in which a qualified opportunity fund holds qualified
opportunity zone stock, or
‘‘(3) in which a qualified opportunity fund holds a qualified
opportunity zone partnership interest.
‘‘(c) OTHER TERMS.—Any term used in this section which is
also used in subchapter Z of chapter 1 shall have the meaning
given such term under such subchapter.
139 STAT. 230 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(d) APPLICATION TO QUALIFIED RURAL OPPORTUNITY
Determination. BUSINESSES.—Every applicable qualified rural opportunity zone
business (as defined in subsection (b) determined after application
of the substitutions described in this sentence) shall furnish the
written statement required under subsection (a), applied—
‘‘(1) by substituting ‘qualified rural opportunity’ for ‘quali-
fied opportunity’ each place it appears, and
‘‘(2) by treating any reference (after the application of para-
graph (1)) to qualified rural opportunity zone stock, a qualified
rural opportunity zone partnership interest, or a qualified rural
opportunity zone business as stock, an interest, or a business,
respectively, described in subclause (I) or (II), as the case
may be, of section 1400Z–2(b)(2)(C)(i).’’.
(2) PENALTIES.—
(A) IN GENERAL.—Part II of subchapter B of chapter
68 is amended by inserting after section 6725 the following
new section:
26 USC 6726. ‘‘SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING
REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY
FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.
Penalty. ‘‘(a) IN GENERAL.—If any person required to file a return under
section 6039K fails to file a complete and correct return under
such section in the time and in the manner prescribed therefor,
such person shall pay a penalty of $500 for each day during which
such failure continues.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The maximum penalty under this section
on failures with respect to any 1 return shall not exceed
$10,000.
‘‘(2) LARGE QUALIFIED OPPORTUNITY FUNDS.—In the case
of any failure described in subsection (a) with respect to a
fund the gross assets of which (determined on the last day
of the taxable year) are in excess of $10,000,000, paragraph
(1) shall be applied by substituting ‘$50,000’ for ‘$10,000’.
Applicability. ‘‘(c) PENALTY IN CASES OF INTENTIONAL DISREGARD.—If a failure
described in subsection (a) is due to intentional disregard, then—
‘‘(1) subsection (a) shall be applied by substituting ‘$2,500’
for ‘$500’,
‘‘(2) subsection (b)(1) shall be applied by substituting
‘$50,000’ for ‘$10,000’, and
‘‘(3) subsection (b)(2) shall be applied by substituting
‘$250,000’ for ‘$50,000’.
‘‘(d) INFLATION ADJUSTMENT.—
Effective date. ‘‘(1) IN GENERAL.—In the case of any failure relating to
a return required to be filed in a calendar year beginning
after 2025, each of the dollar amounts in subsections (a), (b),
and (c) shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year determined by sub-
stituting ‘calendar year 2024’ for ‘calendar year 2016’ in
subparagraph (A)(ii) thereof.
‘‘(2) ROUNDING.—
‘‘(A) IN GENERAL.—If the $500 dollar amount in sub-
section (a) and (c)(1) or the $2,500 amount in subsection
(c)(1), after being increased under paragraph (1), is not
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 231
a multiple of $10, such dollar amount shall be rounded
to the next lowest multiple of $10.
‘‘(B) ASSET THRESHOLD.—If the $10,000,000 dollar
amount in subsection (b)(2), after being increased under
paragraph (1), is not a multiple of $10,000, such dollar
amount shall be rounded to the next lowest multiple of
$10,000.
‘‘(C) OTHER DOLLAR AMOUNTS.—If any dollar amount
in subsection (b) or (c) (other than any amount to which
subparagraph (A) or (B) applies), after being increased
under paragraph (1), is not a multiple of $1,000, such
dollar amount shall be rounded to the next lowest multiple
of $1,000.’’.
(B) INFORMATION REQUIRED TO BE SENT TO OTHER TAX-
PAYERS.—Section 6724(d)(2), as amended by the preceding
provisions of this Act, is amended—
(i) by striking ‘‘or’’ at the end of subparagraph
(LL),
(ii) by striking the period at the end of subpara-
graph (MM) and inserting a comma, and
(iii) by inserting after subparagraph (MM) the fol-
lowing new subparagraphs:
‘‘(NN) section 6039K(c) (relating to disposition of quali-
fied opportunity fund investments), or
‘‘(OO) section 6039L (relating to information required
from certain qualified opportunity zone businesses and
qualified rural opportunity zone businesses).’’.
(3) ELECTRONIC FILING.—Section 6011(e) is amended by
adding at the end the following new paragraph:
‘‘(8) QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL
OPPORTUNITY FUNDS.—Notwithstanding paragraphs (1) and (2),
any return filed by a qualified opportunity fund or qualified
rural opportunity fund under section 6039K shall be filed on
magnetic media or other machine-readable form.’’.
(4) CLERICAL AMENDMENTS.—
(A) The table of sections for subpart A of part III
of subchapter A of chapter 61 is amended by inserting 26 USC
after the item relating to section 6039J the following new prec. 6031.
items:
‘‘Sec. 6039K. Returns with respect to qualified opportunity funds and qualified
rural opportunity funds.
‘‘Sec. 6039L. Information required from qualified opportunity zone businesses and
qualified rural opportunity zone businesses.’’.
(B) The table of sections for part II of subchapter
B of chapter 68 is amended by inserting after the item 26 USC
relating to section 6725 the following new item: prec. 6721.
‘‘Sec. 6726. Failure to comply with information reporting requirements relating to
qualified opportunity funds and qualified rural opportunity funds.’’.
(5) EFFECTIVE DATE.—The amendments made by this sub- 26 USC 6011
section shall apply to taxable years beginning after the date note.
of the enactment of this Act.
(e) SECRETARY REPORTING OF DATA ON OPPORTUNITY ZONE 26 USC 6039K
AND RURAL OPPORTUNITY ZONE TAX INCENTIVES.— note.
(1) IN GENERAL.—In addition to amounts otherwise avail- Appropriation
able, there is appropriated, out of any money in the Treasury authorization.
not otherwise appropriated, $15,000,000, to remain available Expiration date.
until September 30, 2028, for necessary expenses of the Internal
139 STAT. 232 PUBLIC LAW 119–21—JULY 4, 2025
Revenue Service to make the reports described in paragraph
(2).
(2) REPORTS.—As soon as practical after the date of the
enactment of this Act, and annually thereafter, the Secretary
of the Treasury, or the Secretary’s delegate (referred to in
this section as the ‘‘Secretary’’) shall make publicly available
a report on qualified opportunity funds.
(3) INFORMATION INCLUDED.—The report required under
paragraph (2) shall include, to the extent available, the fol-
lowing information:
(A) The number of qualified opportunity funds.
(B) The aggregate dollar amount of assets held in
qualified opportunity funds.
(C) The aggregate dollar amount of investments made
by qualified opportunity funds in qualified opportunity fund
property, stated separately for each North American
Industry Classification System (NAICS) code.
(D) The percentage of population census tracts des-
ignated as qualified opportunity zones that have received
qualified opportunity fund investments.
(E) For each population census tract designated as
a qualified opportunity zone, the approximate average
monthly number of full-time equivalent employees of the
qualified opportunity zone businesses in such qualified
opportunity zone for the preceding 12-month period (within
numerical ranges identified by the Secretary) or such other
indication of the employment impact of such qualified
opportunity fund businesses as determined appropriate by
the Secretary.
(F) The percentage of the total amount of investments
made by qualified opportunity funds in—
(i) qualified opportunity zone property which is
real property; and
(ii) other qualified opportunity zone property.
(G) For each population census tract, the aggregate
approximate number of residential units resulting from
investments made by qualified opportunity funds in real
property.
(H) The aggregate dollar amount of investments made
by qualified opportunity funds in each population census
tract.
(4) ADDITIONAL INFORMATION.—
Effective date. (A) IN GENERAL.—Beginning with the report submitted
under paragraph (2) for the 6th year after the date of
the enactment of this Act, the Secretary shall include in
such report the impacts and outcomes of a designation
of a population census tract as a qualified opportunity
zone as measured by economic indicators, such as job cre-
ation, poverty reduction, new business starts, and other
metrics as determined by the Secretary.
(B) SEMI-DECENNIAL INFORMATION.—
(i) IN GENERAL.—In the case of any report sub-
mitted under paragraph (2) in the 6th year or the
11th year after the date of the enactment of this Act,
the Secretary shall include the following information:
(I) For population census tracts designated as
a qualified opportunity zone, a comparison (based
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 233
on aggregate information) of the factors listed in
clause (iii) between the 5-year period ending on
the date of the enactment of Public Law 115–
97 and the most recent 5-year period for which
data is available.
(II) For population census tracts designated
as a qualified opportunity zone, a comparison
(based on aggregate information) of the factors
listed in clause (iii) for the most recent 5-year
period for which data is available between such
population census tracts and similar population
census tracts that were not designated as a quali-
fied opportunity zone.
(ii) CONTROL GROUPS.—For purposes of clause (i),
the Secretary may combine population census tracts
into such groups as the Secretary determines appro-
priate for purposes of making comparisons.
(iii) FACTORS LISTED.—The factors listed in this
clause are the following:
(I) The unemployment rate.
(II) The number of persons working in the
population census tract, including the percentage
of such persons who were not residents in the
population census tract in the preceding year.
(III) Individual, family, and household poverty
rates.
(IV) Median family income of residents of the
population census tract.
(V) Demographic information on residents of
the population census tract, including age, income,
education, race, and employment.
(VI) The average percentage of income of resi-
dents of the population census tract spent on rent
annually.
(VII) The number of residences in the popu-
lation census tract.
(VIII) The rate of home ownership in the popu-
lation census tract.
(IX) The average value of residential property
in the population census tract.
(X) The number of affordable housing units
in the population census tract.
(XI) The number of new business starts in
the population census tract.
(XII) The distribution of employees in the
population census tract by North American
Industry Classification System (NAICS) code.
(5) PROTECTION OF IDENTIFIABLE RETURN INFORMATION.—
In making reports required under this subsection, the Sec-
retary—
(A) shall establish appropriate procedures to ensure Procedures.
that any amounts reported do not disclose taxpayer return
information that can be associated with any particular
taxpayer or competitive or proprietary information, and
139 STAT. 234 PUBLIC LAW 119–21—JULY 4, 2025
(B) if necessary to protect taxpayer return information,
may combine information required with respect to indi-
vidual population census tracts into larger geographic
areas.
(6) DEFINITIONS.—Any term used in this subsection which
is also used in subchapter Z of chapter 1 of the Internal Revenue
Code of 1986 shall have the meaning given such term under
such subchapter.
(7) REPORTS ON QUALIFIED RURAL OPPORTUNITY FUNDS.—
The Secretary shall make publicly available, with respect to
qualified rural opportunity funds, separate reports as required
under this subsection, applied—
(A) by substituting ‘‘qualified rural opportunity’’ for
‘‘qualified opportunity’’ each place it appears,
(B) by substituting a reference to this Act for ‘‘Public
Law 115–97’’, and
(C) by treating any reference (after the application
of subparagraph (A)) to qualified rural opportunity zone
stock, qualified rural opportunity zone partnership interest,
qualified rural opportunity zone business, or qualified
opportunity zone business property as stock, interest, busi-
ness, or property, respectively, described in subclause (I)
or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i)
of the Internal Revenue Code of 1986.
SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING
TAX CREDIT.
(a) PERMANENT STATE HOUSING CREDIT CEILING INCREASE FOR
LOW-INCOME HOUSING CREDIT.—
(1) IN GENERAL.—Section 42(h)(3)(I) is amended—
(A) by striking ‘‘2018, 2019, 2020, and 2021,’’ and
inserting ‘‘beginning after December 31, 2025,’’,
(B) by striking ‘‘1.125’’ and inserting ‘‘1.12’’, and
(C) by striking ‘‘2018, 2019, 2020, AND 2021’’ in the heading
and inserting ‘‘CALENDAR YEARS AFTER 2025’’.
26 USC 42 note. (2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to calendar years beginning after December
31, 2025.
(b) TAX-EXEMPT BOND FINANCING REQUIREMENT.—
(1) IN GENERAL.—Section 42(h)(4) is amended by striking
subparagraph (B) and inserting the following:
‘‘(B) SPECIAL RULE WHERE MINIMUM PERCENT OF
BUILDINGS IS FINANCED WITH TAX-EXEMPT BONDS SUBJECT
TO VOLUME CAP.—For purposes of subparagraph (A), para-
graph (1) shall not apply to any portion of the credit allow-
able under subsection (a) with respect to a building if—
‘‘(i) 50 percent or more of the aggregate basis of
such building and the land on which the building is
located is financed by 1 or more obligations described
in subparagraph (A), or
‘‘(ii)(I) 25 percent or more of the aggregate basis
of such building and the land on which the building
is located is financed by 1 or more obligations described
in subparagraph (A), and
‘‘(II) 1 or more of such obligations—
‘‘(aa) are part of an issue the issue date of
which is after December 31, 2025, and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 235
‘‘(bb) provide the financing for not less than
5 percent of the aggregate basis of such building
and the land on which the building is located.’’.
(2) EFFECTIVE DATE.— 26 USC 42 note.
(A) IN GENERAL.—The amendment made by this sub-
section shall apply to buildings placed in service in taxable
years beginning after December 31, 2025.
(B) REHABILITATION EXPENDITURES TREATED AS SEPA-
RATE NEW BUILDING.—In the case of any building with
respect to which any expenditures are treated as a separate
new building under section 42(e) of the Internal Revenue
Code of 1986, for purposes of subparagraph (A), both the
existing building and the separate new building shall be
treated as having been placed in service on the date such
expenditures are treated as placed in service under section
42(e)(4) of such Code.
SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) IN GENERAL.—Section 45D(f)(1)(H) is amended by striking
‘‘for for each of calendar years 2020 through 2025’’ and inserting
‘‘ for each calendar year after 2019’’.
(b) CARRYOVER OF UNUSED LIMITATION.—Section 45D(f)(3) is
amended—
(1) by striking ‘‘If the’’ and inserting the following:
‘‘(A) IN GENERAL.—If the’’, and
(2) by striking the second sentence and inserting the fol-
lowing:
‘‘(B) LIMITATION.—No amount may be carried under
subparagraph (A) to any calendar year afer the fifth cal-
endar year after the calendar year in which the excess
described in such subparagraph occurred. For purposes
of this subparagraph, any excess described in subparagraph
(A) with respect to any calendar year before 2026 shall
be treated as occurring in calendar year 2025.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 45D
shall apply to calendar years beginning after December 31, 2025. note.
SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PAR-
TIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF
INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE.
(a) IN GENERAL.—Section 170(p) is amended—
(1) by striking ‘‘$300 ($600’’ and inserting ‘‘$1,000 ($2,000’’,
and
(2) by striking ‘‘beginning in 2021’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 170 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS
MADE BY INDIVIDUALS.
(a) IN GENERAL.—
(1) IN GENERAL.—Paragraph (1) of section 170(b) is
amended by adding at the end the following new subparagraph:
‘‘(I) 0.5-PERCENT FLOOR.—Any charitable contribution
otherwise allowable (without regard to this subparagraph)
as a deduction under this section shall be allowed only
to the extent that the aggregate of such contributions
exceeds 0.5 percent of the taxpayer’s contribution base
139 STAT. 236 PUBLIC LAW 119–21—JULY 4, 2025
Applicability. for the taxable year. The preceding sentence shall be
applied—
‘‘(i) first, by taking into account charitable con-
tributions to which subparagraph (D) applies to the
extent thereof,
‘‘(ii) second, by taking into account charitable con-
tributions to which subparagraph (C) applies to the
extent thereof,
‘‘(iii) third, by taking into account charitable con-
tributions to which subparagraph (B) applies to the
extent thereof,
‘‘(iv) fourth, by taking into account charitable con-
tributions to which subparagraph (E) applies to the
extent thereof,
‘‘(v) fifth, by taking into account charitable con-
tributions to which subparagraph (A) applies to the
extent thereof, and
‘‘(vi) sixth, by taking into account charitable con-
tributions to which subparagraph (G) applies to the
extent thereof.’’.
(2) APPLICATION OF CARRYFORWARD.—Paragraph (1) of sec-
tion 170(d) is amended by adding at the end the following
new subparagraph:
Definitions. ‘‘(C) CONTRIBUTIONS DISALLOWED BY 0.5-PERCENT FLOOR
CARRIED FORWARD ONLY FROM YEARS IN WHICH LIMITATION
IS EXCEEDED.—
‘‘(i) IN GENERAL.—In the case of any taxable year
from which an excess is carried forward (determined
without regard to this subparagraph) under any carry-
over rule, the applicable carryover rule shall be applied
by increasing the excess determined under such
applicable carryover rule for the contribution year
(before the application of subparagraph (B)) by the
amount attributable to the charitable contributions to
which such rule applies which is not allowed as a
deduction for the contribution year by reason of sub-
section (b)(1)(I).
‘‘(ii) CARRYOVER RULE.—For purposes of this
subparagraph, the term ‘carryover rule’ means—
‘‘(I) subparagraph (A) of this paragraph,
‘‘(II) subparagraphs (C)(ii), (D)(ii), (E)(ii), and
(G)(ii) of subsection (b)(1), and
‘‘(III) the second sentence of subsection
(b)(1)(B).
‘‘(iii) APPLICABLE CARRYOVER RULE.—For purposes
of this subparagraph, the term ‘applicable carryover
rule’ means any carryover rule applicable to charitable
contributions which were (in whole or in part) not
allowed as a deduction for the contribution year by
reason of subsection (b)(1)(I).’’.
(3) COORDINATION WITH DEDUCTION FOR NONITEMIZERS.—
Section 170(p), as amended by this Act, is further amended
by inserting ‘‘, (b)(1)(I),’’ after ‘‘subsections (b)(1)(G)(ii)’’.
(b) MODIFICATION OF LIMITATION FOR CASH CONTRIBUTIONS.—
(1) IN GENERAL.—Clause (i) of section 170(b)(1)(G) is
amended to read as follows:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 237
‘‘(i) IN GENERAL.—For taxable years beginning Effective date.
after December 31, 2017, any contribution of cash to
an organization described in subparagraph (A) shall
be allowed as a deduction under subsection (a) to the
extent that the aggregate of such contributions does
not exceed the excess of—
‘‘(I) 60 percent of the taxpayer’s contribution
base for the taxable year, over
‘‘(II) the aggregate amount of contributions
taken into account under subparagraph (A) for
such taxable year.’’.
(2) COORDINATION WITH OTHER LIMITATIONS.—
(A) IN GENERAL.—Clause (iii) of section 170(b)(1)(G)
is amended—
(i) by striking ‘‘SUBPARAGRAPHS (A) AND (B)’’ in the
heading and inserting ‘‘SUBPARAGRAPH (A)’’, and
(ii) in subclause (II), by striking ‘‘, and subpara-
graph (B)’’ and all that follows through ‘‘this subpara-
graph’’.
(B) OTHER CONTRIBUTIONS.—Subparagraph (B) of sec-
tion 170(b)(1) is amended—
(i) by striking ‘‘to which subparagraph (A)’’ both
places it appears and inserting ‘‘to which subparagraph
(A) or (G)’’, and
(ii) in clause (ii), by striking ‘‘over the amount’’
and all that follows through ‘‘subparagraph (C)).’’ and
inserting ‘‘over—
‘‘(I) the amount of charitable contributions
allowable under subparagraph (A) (determined
without regard to subparagraph (C)) and subpara-
graph (G), reduced by
‘‘(II) so much of the contributions taken into
account under subparagraph (G) as does not exceed
10 percent of the taxpayer’s contribution base.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 170 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CON-
TRIBUTIONS MADE BY CORPORATIONS.
(a) IN GENERAL.—Section 170(b)(2)(A) is amended to read as
follows:
‘‘(A) IN GENERAL.—Any charitable contribution other-
wise allowable (without regard to this subparagraph) as
a deduction under this section for any taxable year, other
than any contribution to which subparagraph (B) or (C)
applies, shall be allowed only to the extent that the aggre-
gate of such contributions—
‘‘(i) exceeds 1 percent of the taxpayer’s taxable
income for the taxable year, and
‘‘(ii) does not exceed 10 percent of the taxpayer’s
taxable income for the taxable year.’’.
(b) APPLICATION OF CARRYFORWARD.—Section 170(d)(2) is
amended to read as follows:
‘‘(2) CORPORATIONS.—
‘‘(A) IN GENERAL.—Any charitable contribution taken
into account under subsection (b)(2)(A) for any taxable
year which is not allowed as a deduction by reason of
139 STAT. 238 PUBLIC LAW 119–21—JULY 4, 2025
clause (ii) thereof shall be taken into account as a charitable
contribution for the succeeding taxable year, except that,
for purposes of determining under this subparagraph
whether such contribution is allowed in such succeeding
taxable year, contributions in such succeeding taxable year
(determined without regard to this paragraph) shall be
taken into account under subsection (b)(2)(A) before any
contribution taken into account by reason of this paragraph.
‘‘(B) 5-YEAR CARRYFORWARD.—No charitable contribu-
tion may be carried forward under subparagraph (A) to
any taxable year following the fifth taxable year after the
taxable year in which the charitable contribution was first
taken into account. For purposes of the preceding sentence,
contributions shall be treated as allowed on a first-in first-
out basis.
‘‘(C) CONTRIBUTIONS DISALLOWED BY 1-PERCENT FLOOR
CARRIED FORWARD ONLY FROM YEARS IN WHICH 10 PERCENT
LIMITATION IS EXCEEDED.—In the case of any taxable year
from which a charitable contribution is carried forward
under subparagraph (A) (determined without regard this
subparagraph), subparagraph (A) shall be applied by sub-
stituting ‘clause (i) or (ii)’ for ‘clause (ii)’.
‘‘(D) SPECIAL RULE FOR NET OPERATING LOSS
Reduction. CARRYOVERS.—The amount of charitable contributions car-
ried forward under subparagraph (A) shall be reduced to
the extent that such carryfoward would (but for this
subparagraph) reduce taxable income (as computed for pur-
poses of the second sentence of section 172(b)(2)) and
increase a net operating loss carryover under section 172
to a succeeding taxable year.’’.
(c) CONFORMING AMENDMENTS.—Subparagraphs (B)(ii) and
(C)(ii) of section 170(b)(2) are each amended by inserting ‘‘other
than subparagraph (C) thereof’’ after ‘‘subsection (d)(2)’’.
26 USC 170 note. (d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER
OF TAX ON DISTILLED SPIRITS.
(a) IN GENERAL.—Paragraph (1) of section 7652(f) is amended
to read as follows:
‘‘(1) $13.25, or’’.
26 USC 7652 (b) EFFECTIVE DATE.—The amendment made by this section
note. shall apply to distilled spirits brought into the United States after
December 31, 2025.
Alaska. SEC. 70428. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN
Fish and fishing. REMOTE NATIVE VILLAGES.
26 USC 501 note.
(a) IN GENERAL.—For purposes of subchapter F of chapter
1 of the Internal Revenue Code of 1986, any activity substantially
related to participation or investment in fisheries in the Bering
Sea and Aleutian Islands statistical and reporting areas (as
described in Figure 1 of section 679 of title 50, Code of Federal
Regulations) carried on by an entity identified in section 305(i)(1)(D)
of the Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment
of this section) shall be considered substantially related to the
exercise or performance of the purpose constituting the basis of
such entity’s exemption under section 501(a) of such Code if the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 239
conduct of such activity is in furtherance of 1 or more of the
purposes specified in section 305(i)(1)(A) of such Act (as so in
effect). For purposes of this paragraph, activities substantially
related to participation or investment in fisheries include the har-
vesting, processing, transportation, sales, and marketing of fish
and fish products of the Bering Sea and Aleutian Islands statistical
and reporting areas.
(b) APPLICATION TO CERTAIN WHOLLY OWNED SUBSIDIARIES.—
If the assets of a trade or business relating to an activity described Deadline.
in subsection (a) of any subsidiary wholly owned by an entity
identified in section 305(i)(1)(D) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as
in effect on the date of enactment of this section) are transferred
to such entity (including in liquidation of such subsidiary) not
later than 18 months after the date of the enactment of this Act—
(1) no gain or income resulting from such transfer shall
be recognized to either such subsidiary or such entity under
such Code, and
(2) all income derived from such subsidiary from such
transferred trade or business shall be exempt from taxation
under such Code.
(c) EFFECTIVE DATE.—This section shall take effect on the date
of the enactment of this Act and shall remain effective during
the existence of the western Alaska community development quota
program established by Section 305(i)(1) of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)),
as amended.
SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN
EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN
SUBSISTENCE WHALING.
(a) IN GENERAL.—Section 170(n)(1) of the Internal Revenue
Code of 1986 is amended by striking ‘‘$10,000’’ and inserting
‘‘$50,000’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 170 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD
OF ACCOUNTING FOR CERTAIN RESIDENTIAL
CONSTRUCTION CONTRACTS.
(a) IN GENERAL.—Section 460(e) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘home construction contract’’ both places
it appears and inserting ‘‘residential construction contract’’,
and
(B) by inserting ‘‘(determined by substituting ‘3-year’
for ‘2-year’ in subparagraph (B)(i) for any residential
construction contract which is not a home construction
contract)’’ after ‘‘the requirements of clauses (i) and (ii)
of subparagraph (B)’’,
(2) by striking paragraph (4) and redesignating paragraph
(5) as paragraph (4), and
(3) in subparagraph (A) of paragraph (4), as so redesig-
nated, by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraph
(3)’’.
(b) APPLICATION OF EXCEPTION FOR PURPOSES OF ALTERNATIVE
MINIMUM TAX.—Section 56(a)(3) is amended by striking ‘‘any home
construction contract (as defined in section 460(e)(6))’’ and inserting
139 STAT. 240 PUBLIC LAW 119–21—JULY 4, 2025
‘‘any residential construction contract (as defined in section
460(e)(4))’’.
26 USC 56 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to contracts entered into in taxable years beginning
after the date of the enactment of this Act.
Subchapter D—Permanent Investments in Small Business
and Rural America
SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN
EXCLUSION.
(a) PHASED INCREASE IN EXCLUSION FOR GAIN FROM QUALIFIED
SMALL BUSINESS STOCK.—
(1) IN GENERAL.—Section 1202(a)(1) is amended to read
as follows:
Time periods. ‘‘(1) IN GENERAL.— In the case of a taxpayer other than
a corporation, gross income shall not include—
‘‘(A) except as provided in paragraphs (3) and (4), 50
percent of any gain from the sale or exchange of qualified
small business stock acquired on or before the applicable
date and held for more than 5 years, and
‘‘(B) the applicable percentage of any gain from the
sale or exchange of qualified small business stock acquired
after the applicable date and held for at least 3 years.’’.
(2) APPLICABLE PERCENTAGE.—Section 1202(a) is amended
by adding at the end the following new paragraph:
‘‘(5) APPLICABLE PERCENTAGE.—The applicable percentage
under paragraph (1) shall be determined under the following
table:
Applicable
‘‘Years stock held: percentage:
3 years ....................................................................... 50%
4 years ....................................................................... 75%
5 years or more ........................................................ 100%’’.
(3) APPLICABLE DATE; ACQUISITION DATE.—Section 1202(a),
as amended by paragraph (2), is amended by adding at the
end the following new paragraph:
‘‘(6) APPLICABLE DATE; ACQUISITION DATE.—For purposes
of this section—
Definition. ‘‘(A) APPLICABLE DATE.—The term ‘applicable date’
means the date of the enactment of this paragraph.
‘‘(B) ACQUISITION DATE.—In the case of any stock which
would (but for this paragraph) be treated as having been
acquired before, on, or after the applicable date, whichever
is applicable, the acquisition date for purposes of this sec-
tion shall be the first day on which such stock was held
by the taxpayer determined after the application of section
1223.’’.
(4) CONTINUED TREATMENT AS NOT ITEM OF TAX PREF-
ERENCE.—
(A) IN GENERAL.—Section 57(a)(7) is amended by
striking ‘‘An amount’’ and inserting ‘‘In the case of stock
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 241
acquired on or before the date of the enactment of the
Creating Small Business Jobs Act of 2010, an amount’’.
(B) CONFORMING AMENDMENT.—Section 1202(a)(4) is
amended—
(i) by striking ‘‘, and’’ at the end of subparagraph
(B) and inserting a period, and
(ii) by striking subparagraph (C).
(5) OTHER CONFORMING AMENDMENTS.—
(A) Paragraphs (3)(A) and (4)(A) of section 1202(a)
are each amended by striking ‘‘paragraph (1)’’ and inserting
‘‘paragraph (1)(A)’’.
(B) Paragraph (4)(A) of section 1202(a) is amended
by inserting ‘‘and on or before the applicable date’’ after
‘‘2010’’.
(C) Sections 1202(b)(2), 1202(g)(2)(A), and 1202(j)(1)(A)
are each amended by striking ‘‘more than 5 years’’ and
inserting ‘‘at least 3 years (more than 5 years in the case
of stock acquired on or before the applicable date)’’.
(6) EFFECTIVE DATES.— 26 USC 57 note.
(A) IN GENERAL.—Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to taxable years beginning after the date of the enactment
of this Act.
(B) CONTINUED TREATMENT AS NOT ITEM OF TAX PREF-
ERENCE.—The amendments made by paragraph (4) shall
take effect as if included in the enactment of section 2011
of the Creating Small Business Jobs Act of 2010.
(b) INCREASE IN PER ISSUER LIMITATION.—
(1) IN GENERAL.—Subparagraph (A) of section 1202(b)(1)
is amended to read as follows:
‘‘(A) the applicable dollar limit for the taxable year,
or’’.
(2) APPLICABLE DOLLAR LIMIT.—Section 1202 (b) is amended
by adding at the end the following:
‘‘(4) APPLICABLE DOLLAR LIMIT.—For purposes of paragraph
(1)(A), the applicable dollar limit for any taxable year with
respect to eligible gain from 1 or more dispositions by a tax-
payer of qualified business stock of a corporation is—
‘‘(A) if such stock was acquired by the taxpayer on
or before the applicable date, $10,000,000, reduced by the
aggregate amount of eligible gain taken into account by
the taxpayer under subsection (a) for prior taxable years
and attributable to dispositions of stock issued by such
corporation and acquired by the taxpayer before, on, or
after the applicable date, and
‘‘(B) if such stock was acquired by the taxpayer after
the applicable date, $15,000,000, reduced by the sum of—
‘‘(i) the aggregate amount of eligible gain taken
into account by the taxpayer under subsection (a) for
prior taxable years and attributable to dispositions
of stock issued by such corporation and acquired by
the taxpayer before, on, or after the applicable date,
plus
‘‘(ii) the aggregate amount of eligible gain taken
into account by the taxpayer under subsection (a) for
the taxable year and attributable to dispositions of
139 STAT. 242 PUBLIC LAW 119–21—JULY 4, 2025
stock issued by such corporation and acquired by the
taxpayer on or before the applicable date.
‘‘(5) INFLATION ADJUSTMENT.—
Effective date. ‘‘(A) IN GENERAL.—In the case of any taxable year
beginning after 2026, the $15,000,000 amount in paragraph
(4)(B) shall be increased by an amount equal to —
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
‘calendar year 2025’ for ‘calendar year 2016’ in
subparagraph (A)(ii) thereof.
If any increase under this subparagraph is not a multiple
of $10,000, such increase shall be rounded to the nearest
multiple of $10,000.
‘‘(B) NO INCREASE ONCE LIMIT REACHED.—If, for any
taxable year, the eligible gain attributable to dispositions
of stock issued by a corporation and acquired by the tax-
payer after the applicable date exceeds the applicable dollar
limit, then notwithstanding any increase under subpara-
graph (A) for any subsequent taxable year, the applicable
dollar limit for such subsequent taxable year shall be zero.’’.
(3) SEPARATE RETURNS.—Subparagraph (A) of section
1202(b)(3) is amended to read as follows:
Applicability. ‘‘(A) SEPARATE RETURNS.—In the case of a separate
return by a married individual for any taxable year—
‘‘(i) paragraph (4)(A) shall be applied by sub-
stituting ‘$5,000,000’ for ‘$10,000,000’, and
‘‘(ii) paragraph (4)(B) shall be applied by sub-
stituting one-half of the dollar amount in effect under
such paragraph for the taxable year for the amount
so in effect.’’.
26 USC 1202 (4) EFFECTIVE DATE.—The amendments made by this sub-
note. section shall apply to taxable years beginning after the date
of the enactment of this Act.
(c) INCREASE IN LIMIT IN AGGREGATE GROSS ASSETS.—
(1) IN GENERAL.—Subparagraphs (A) and (B) of section
1202(d)(1) are each amended by striking ‘‘$50,000,000’’ and
inserting ‘‘$75,000,000’’.
(2) INFLATION ADJUSTMENT.—Section 1202(b) is amended
by adding at the end the following:
Effective date. ‘‘(4) INFLATION ADJUSTMENT.—In the case of any taxable
year beginning after 2026, the $75,000,000 amounts in para-
graphs (1)(A) and (1)(B) shall each be increased by an amount
equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
2025’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
If any increase under this paragraph is not a multiple of
$10,000, such increase shall be rounded to the nearest multiple
of $10,000.’’.
26 USC 1202 (3) EFFECTIVE DATE.—The amendments made by this sub-
note. section shall apply to stock issued after the date of the enact-
ment of this Act.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 243
SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD
PARTY NETWORK TRANSACTIONS.
(a) REINSTATEMENT OF EXCEPTION FOR DE MINIMIS PAYMENTS
AS IN EFFECT PRIOR TO ENACTMENT OF AMERICAN RESCUE PLAN
ACT OF 2021.—
(1) IN GENERAL.—Section 6050W(e) is amended to read
as follows:
‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY THIRD PARTY
SETTLEMENT ORGANIZATIONS.—A third party settlement organiza- Reports.
tion shall be required to report any information under subsection
(a) with respect to third party network transactions of any partici-
pating payee only if—
‘‘(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$20,000, and
‘‘(2) the aggregate number of such transactions exceeds
200.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 6050W
section shall take effect as if included in section 9674 of the note.
American Rescue Plan Act.
(b) APPLICATION OF DE MINIMIS RULE FOR THIRD PARTY NET-
WORK TRANSACTIONS TO BACKUP WITHHOLDING.—
(1) IN GENERAL.—Section 3406(b) is amended by adding
at the end the following new paragraph:
‘‘(8) OTHER REPORTABLE PAYMENTS INCLUDE PAYMENTS IN
SETTLEMENT OF THIRD PARTY NETWORK TRANSACTIONS ONLY
WHERE AGGREGATE TRANSACTIONS EXCEED REPORTING
THRESHOLD FOR THE CALENDAR YEAR.—
‘‘(A) IN GENERAL.—Any payment in settlement of a
third party network transaction required to be shown on
a return required under section 6050W which is made
during any calendar year shall be treated as a reportable
payment only if—
‘‘(i) the aggregate number of transactions with
respect to the participating payee during such calendar
year exceeds the number of transactions specified in
section 6050W(e)(2), and
‘‘(ii) the aggregate amount of transactions with
respect to the participating payee during such calendar
year exceeds the dollar amount specified in section
6050W(e)(1) at the time of such payment.
‘‘(B) EXCEPTION IF THIRD PARTY NETWORK TRANS-
ACTIONS MADE IN PRIOR YEAR WERE REPORTABLE.—Subpara-
graph (A) shall not apply with respect to payments to
any participating payee during any calendar year if one
or more payments in settlement of third party network
transactions made by the payor to the participating payee
during the preceding calendar year were reportable pay-
ments.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 3406
section shall apply to calendar years beginning after December note.
31, 2024.
SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION
REPORTING WITH RESPECT TO CERTAIN PAYEES.
(a) IN GENERAL.—Section 6041(a) is amended by striking ‘‘$600’’
and inserting ‘‘$2,000’’.
139 STAT. 244 PUBLIC LAW 119–21—JULY 4, 2025
(b) INFLATION ADJUSTMENT.—Section 6041 is amended by
adding at the end the following new subsection:
‘‘(h) INFLATION ADJUSTMENT.—In the case of any calendar year
after 2026, the dollar amount in subsection (a) shall be increased
by an amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) the cost-of-living adjustment determined under section
1(f)(3) for such calendar year, determined by substituting ‘cal-
endar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii)
thereof.
If any increase under the preceding sentence is not a multiple
of $100, such increase shall be rounded to the nearest multiple
of $100.’’.
(c) APPLICATION TO REPORTING ON REMUNERATION FOR SERV-
ICES.—Section 6041A(a)(2) is amended by striking ‘‘is $600 or more’’
and inserting ‘‘equals or exceeds the dollar amount in effect for
such calendar year under section 6041(a)’’.
(d) APPLICATION TO BACKUP WITHHOLDING.—Section 3406(b)(6)
is amended—
(1) by striking ‘‘$600’’ in subparagraph (A) and inserting
‘‘the dollar amount in effect for such calendar year under section
6041(a)’’, and
(2) by striking ‘‘ONLY WHERE AGGREGATE FOR CALENDAR
YEAR IS $600 OR MORE’’ in the heading and inserting ‘‘ONLY
WHERE IN EXCESS OF THRESHOLD’’.
(e) CONFORMING AMENDMENTS.—
(1) The heading of section 6041(a) is amended by striking
‘‘OF $600 OR MORE’’ and inserting ‘‘EXCEEDING THRESHOLD’’.
(2) Section 6041(a) is amended by striking ‘‘taxable year’’
and inserting ‘‘calendar year’’.
26 USC 3406 (f) EFFECTIVE DATE.—The amendments made by this section
note. shall apply with respect to payments made after December 31,
2025.
SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING
PRODUCTIONS.
(a) ELECTION TO TREAT COSTS AS EXPENSES.—Section 181(a)(1)
is amended by striking ‘‘qualified film or television production,
and any qualified live theatrical production,’’ and inserting ‘‘quali-
fied film or television production, any qualified live theatrical
production, and any qualified sound recording production’’.
(b) DOLLAR LIMITATION.—Section 181(a)(2) is amended by
adding at the end the following new subparagraph:
‘‘(C) QUALIFIED SOUND RECORDING PRODUCTION.—Para-
graph (1) shall not apply to so much of the aggregate
cost of any qualified sound recording production, or to
so much of the aggregate, cumulative cost of all such quali-
fied sound recording productions in the taxable year, as
exceeds $150,000.’’.
(c) NO OTHER DEDUCTION OR AMORTIZATION DEDUCTION ALLOW-
ABLE.—Section 181(b) is amended by striking ‘‘qualified film or
television production or any qualified live theatrical production’’
and inserting ‘‘qualified film or television production, any qualified
live theatrical production, or any qualified sound recording produc-
tion’’.
(d) ELECTION.—Section 181(c)(1) is amended by striking ‘‘quali-
fied film or television production or any qualified live theatrical
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 245
production’’ and inserting ‘‘qualified film or television production,
any qualified live theatrical production, or any qualified sound
recording production’’.
(e) QUALIFIED SOUND RECORDING PRODUCTION DEFINED.—Sec-
tion 181 is amended by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively, and by inserting after sub-
section (e) the following new subsection:
‘‘(f) QUALIFIED SOUND RECORDING PRODUCTION.—For purposes
of this section, the term ‘qualified sound recording production’
means a sound recording (as defined in section 101 of title 17,
United States Code) produced and recorded in the United States.’’.
(f) APPLICATION OF TERMINATION.—Section 181(h), as redesig-
nated by subsection (e), is amended by striking ‘‘qualified film
and television productions or qualified live theatrical productions’’
and inserting ‘‘qualified film and television productions, qualified
live theatrical productions, or qualified sound recording produc-
tions’’.
(g) BONUS DEPRECIATION.—
(1) QUALIFIED SOUND RECORDING PRODUCTION AS QUALIFIED
PROPERTY.—Section 168(k)(2)(A)(i) is amended—
(A) by striking ‘‘or’’ at the end of subclause (IV), by
inserting ‘‘or’’ at the end of subclause (V), and by inserting
after subclause (V) the following:
‘‘(VI) which is a qualified sound recording
production (as defined in subsection (f) of section
181) for which a deduction would have been allow-
able under section 181 without regard to sub-
sections (a)(2) and (h) of such section or this sub-
section, and’’, and
(B) in subclauses (IV) and (V) (as so amended) by
striking ‘‘without regard to subsections (a)(2) and (g)’’ both
places it appears and inserting ‘‘without regard to sub-
sections (a)(2) and (h)’’.
(2) PRODUCTION PLACED IN SERVICE.—Section 168(k)(2)(H)
is amended by striking ‘‘and’’ at the end of clause (i), by striking
the period at the end of clause (ii) and inserting ‘‘, and’’,
and by adding after clause (ii) the following:
‘‘(iii) a qualified sound recording production shall
be considered to be placed in service at the time of
initial release or broadcast.’’.
(h) CONFORMING AMENDMENTS.—
(1) The heading for section 181 is amended to read as
follows: ‘‘TREATMENT OF CERTAIN QUALIFIED PRODUCTIONS.’’.
(2) The table of sections for part VI of subchapter B of
chapter 1 is amended by striking the item relating to section 26 USC
181 and inserting the following new item: prec. 161.
‘‘Sec. 181. Treatment of certain qualified productions.’’.
(i) EFFECTIVE DATE.—The amendments made by this section 26 USC 168 note.
shall apply to productions commencing in taxable years ending
after the date of the enactment of this Act.
SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL
OR AGRICULTURAL REAL PROPERTY.
(a) IN GENERAL.—Part III of subchapter B of chapter 1, as
amended by the preceding provisions of this Act, is amended by
inserting after section 139K the following new section:
139 STAT. 246 PUBLIC LAW 119–21—JULY 4, 2025
Definitions. ‘‘SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICUL-
26 USC 139L. TURAL REAL PROPERTY.
‘‘(a) IN GENERAL.—Gross income shall not include 25 percent
of the interest received by a qualified lender on any qualified
real estate loan.
‘‘(b) QUALIFIED LENDER.—For purposes of this section, the term
‘qualified lender’ means—
‘‘(1) any bank or savings association the deposits of which
are insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.),
‘‘(2) any State- or federally-regulated insurance company,
‘‘(3) any entity wholly owned, directly or indirectly, by
a company that is treated as a bank holding company for
purposes of section 8 of the International Banking Act of 1978
(12 U.S.C. 3106) if—
‘‘(A) such entity is organized, incorporated, or estab-
lished under the laws of the United States or any State,
and
‘‘(B) the principal place of business of such entity is
in the United States (including any territory of the United
States),
‘‘(4) any entity wholly owned, directly or indirectly, by
a company that is considered an insurance holding company
under the laws of any State if such entity satisfies the require-
ments described in subparagraphs (A) and (B) of paragraph
(3), and
‘‘(5) with respect to interest received on a qualified real
estate loan secured by real estate described in subsection
(c)(3)(A), any federally chartered instrumentality of the United
States established under section 8.1(a) of the Farm Credit
Act of 1971 (12 U.S.C. 2279aa-1(a)).
‘‘(c) QUALIFIED REAL ESTATE LOAN.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘qualified real estate loan’
means any loan—
‘‘(A) secured by—
‘‘(i) rural or agricultural real estate, or
‘‘(ii) a leasehold mortgage (with a status as a lien)
on rural or agricultural real estate,
‘‘(B) made to a person other than a specified foreign
entity (as defined in section 7701(a)(51)), and
‘‘(C) made after the date of the enactment of this
section.
For purposes of the preceding sentence, the determination of
whether property securing such loan is rural or agricultural
real estate shall be made as of the time the interest income
on such loan is accrued.
‘‘(2) REFINANCINGS.—For purposes of subparagraphs (A)
and (C) of paragraph (1), a loan shall not be treated as made
after the date of the enactment of this section to the extent
that the proceeds of such loan are used to refinance a loan
which was made on or before the date of the enactment of
this section (or, in the case of any series of refinancings, the
original loan was made on or before such date).
‘‘(3) RURAL OR AGRICULTURAL REAL ESTATE.—The term
‘rural or agricultural real estate’ means—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 247
‘‘(A) any real property which is substantially used for
the production of one or more agricultural products,
‘‘(B) any real property which is substantially used in
the trade or business of fishing or seafood processing, and
‘‘(C) any aquaculture facility.
Such term shall not include any property which is not located
in a State or a possession of the United States.
‘‘(4) AQUACULTURE FACILITY.—The term ‘aquaculture
facility’ means any land, structure, or other appurtenance that
is used for aquaculture (including any hatchery, rearing pond,
raceway, pen, or incubator).
‘‘(d) COORDINATION WITH SECTION 265.—In the case of any Applicability.
qualified real estate loan, section 265 shall be applied—
‘‘(1) by treating any qualified real estate loan for purposes
of subsection (a)(2) thereof as an obligation the interest on
which is wholly exempt from the taxes imposed by this subtitle,
‘‘(2) by substituting ‘25 percent of the interest on indebted-
ness’ for ‘Interest on indebtedness’ in such subsection (a)(2),
‘‘(3) by treating 25 percent of the adjusted basis of any
qualified real estate loan as adjusted basis of a tax-exempt
obligation described in subsection (b)(4)(B) thereof, and
‘‘(4) by substituting ‘25 percent of the amount of such
indebtedness’ for ‘the amount of such indebtedness’ in sub-
section (b)(6)(A)(a)(ii) thereof.’’.
(b) CLERICAL AMENDMENT.—The table of sections for part III
of subchapter B of chapter 1, as amended by the preceding provi-
sions of this Act, is amended by inserting after the item relating 26 USC
to section 139K the following new item: prec. 101
‘‘Sec. 139L. Interest on loans secured by rural or agricultural real property.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 139L
shall apply to taxable years ending after the date of the enactment note.
of this Act.
SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES
FOR CERTAIN DEVICES.
(a) TRANSFER TAX.—Section 5811(a) is amended to read as
follows:
‘‘(a) RATE.—There shall be levied, collected, and paid on fire-
arms transferred a tax at the rate of—
‘‘(1) $200 for each firearm transferred in the case of a
machinegun or a destructive device, and
‘‘(2) $0 for any firearm transferred which is not described
in paragraph (1).’’.
(b) MAKING TAX.—Section 5821(a) is amended to read as follows:
‘‘(a) RATE.—There shall be levied, collected, and paid upon
the making of a firearm a tax at the rate of—
‘‘(1) $200 for each firearm made in the case of a machinegun
or a destructive device, and
‘‘(2) $0 for any firearm made which is not described in
paragraph (1).’’.
(c) CONFORMING AMENDMENT.—Section 4182(a) is amended by
adding at the end the following: ‘‘For purposes of the preceding
sentence, any firearm described in section 5811(a)(2) shall be
deemed to be a firearm on which the tax provided by section
5811 has been paid.’’
139 STAT. 248 PUBLIC LAW 119–21—JULY 4, 2025
26 USC 4182 (d) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to calendar quarters beginning more than 90 days
after the date of the enactment of this Act.
SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CER-
TAIN FARMLAND PROPERTY.
(a) IN GENERAL.—Part IV of subchapter O of chapter 1 is
amended by redesignating section 1062 as section 1063 and by
inserting after section 1061 the following new section:
26 USC 1062 ‘‘SEC. 1062. GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARM-
note. LAND PROPERTY TO QUALIFIED FARMERS.
‘‘(a) ELECTION TO PAY TAX IN INSTALLMENTS.—In the case of
gain from the sale or exchange of qualified farmland property
to a qualified farmer, at the election of the taxpayer, the portion
of the net income tax of such taxpayer for the taxable year of
the sale or exchange which is equal to the applicable net tax
liability shall be paid in 4 equal installments.
‘‘(b) RULES RELATING TO INSTALLMENT PAYMENTS.—
‘‘(1) DATE FOR PAYMENT OF INSTALLMENTS.—If an election
is made under subsection (a), the first installment shall be
paid on the due date (determined without regard to any exten-
sion of time for filing the return) for the return of tax for
the taxable year in which the sale or exchange occurs and
each succeeding installment shall be paid on the due date
(as so determined) for the return of tax for the taxable year
following the taxable year with respect to which the preceding
installment was made.
‘‘(2) ACCELERATION OF PAYMENT.—
‘‘(A) IN GENERAL.—If there is an addition to tax for
failure to timely pay any installment required under this
section, then the unpaid portion of all remaining install-
ments shall be due on the date of such failure.
‘‘(B) INDIVIDUALS.—In the case of an individual, if the
individual dies, then the unpaid portion of all remaining
installment shall be paid on the due date for the return
of tax for the taxable year in which the taxpayer dies.
‘‘(C) C CORPORATIONS.—In the case of a taxpayer which
is a C corporation, trust, or estate, if there is a liquidation
or sale of substantially all the assets of the taxpayer
(including in a title 11 or similar case), a cessation of
business by the taxpayer (in the case of a C corporation),
or any similar circumstance, then the unpaid portion of
all remaining installments shall be due on the date of
such event (or in the case of a title 11 or similar case,
Contracts. the day before the petition is filed). The preceding sentence
shall not apply to the sale of substantially all the assets
of a taxpayer to a buyer if such buyer enters into an
agreement with the Secretary under which such buyer
is liable for the remaining installments due under this
subsection in the same manner as if such buyer were
the taxpayer.
‘‘(3) PRORATION OF DEFICIENCY TO INSTALLMENTS.—If an
election is made under subsection (a) to pay the applicable
net tax liability in installments and a deficiency has been
assessed with respect to such applicable net tax liability, the
deficiency shall be prorated to the installments payable under
subsection (a). The part of the deficiency so prorated to any
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 249
installment the date for payment of which has not arrived
shall be collected at the same time as, and as a part of,
such installment. The part of the deficiency so prorated to Notice.
any installment the date for payment of which has arrived
shall be paid upon notice and demand from the Secretary.
This section shall not apply if the deficiency is due to neg-
ligence, to intentional disregard of rules and regulations, or
to fraud with intent to evade tax.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—Any election under subsection (a) shall Deadline.
be made not later than the due date for the return of tax
for the taxable year described in subsection (a).
‘‘(2) PARTNERSHIPS AND S CORPORATIONS.—In the case of
a sale or exchange described in subsection (a) by a partnership
or S corporation, the election under subsection (a) shall be
made at the partner or shareholder level. The Secretary may Regulations.
prescribe such regulations or other guidance as necessary to Guidance.
carry out the purposes of this paragraph.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) APPLICABLE NET TAX LIABILITY.—
‘‘(A) IN GENERAL.—The applicable net tax liability with
respect to the sale or exchange of any property described
in subsection (a) is the excess (if any) of—
‘‘(i) such taxpayer’s net income tax for the taxable
year, over
‘‘(ii) such taxpayer’s net income tax for such tax-
able year determined without regard to any gain recog-
nized from the sale or exchange of such property.
‘‘(B) NET INCOME TAX.—The term ‘net income tax’
means the regular tax liability reduced by the credits
allowed under subparts A, B, and D of part IV of subchapter
A.
‘‘(2) QUALIFIED FARMLAND PROPERTY.—
‘‘(A) IN GENERAL.—The term ‘qualified farmland prop-
erty’ means real property located in the United States—
‘‘(i) which—
‘‘(I) has been used by the taxpayer as a farm
for farming purposes, or
‘‘(II) leased by the taxpayer to a qualified
farmer for farming purposes,
during substantially all of the 10-year period ending
on the date of the qualified sale or exchange, and
‘‘(ii) which is subject to a covenant or other legally
enforceable restriction which prohibits the use of such
property other than as a farm for farming purposes
for any period before the date that is 10 years after
the date of the sale or exchange described in subsection
(a).
For purposes of clause (i), property which is used or leased
by a partnership or S corporation in a manner described
in such clause shall be treated as used or leased in such
manner by each person who holds a direct or indirect
interest in such partnership or S corporation.
‘‘(B) FARM; FARMING PURPOSES.—The terms ‘farm’ and
‘farming purposes’ have the respective meanings given such
terms under section 2032A(e).
139 STAT. 250 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(3) QUALIFIED FARMER.—The term ‘qualified farmer’ means
any individual who is actively engaged in farming (within the
meaning of subsections (b) and (c) of section 1001 of the Food
Security Act of 1986 (7 U.S.C. 1308–1(b) and (c))).
‘‘(e) RETURN REQUIREMENT.—A taxpayer making an election
under subsection (a) shall include with the return for the taxable
year of the sale or exchange described in subsection (a) a copy
of the covenant or other legally enforceable restriction described
in subsection (d)(2)(A)(ii).’’.
(b) CLERICAL AMENDMENT.—The table of sections for part IV
of subchapter O of chapter 1 is amended by redesignating the
26 USC item relating to section 1062 as relating to section 1063 and by
prec. 1051. inserting after the item relating to section 1061 the following new
item:
‘‘Sec. 1062. Gain from the sale or exchange of qualified farmland property to quali-
fied farmers.’’.
26 USC 1062 (c) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to sales or exchanges in taxable years beginning after
the date of the enactment of this Act.
Applicability. SEC. 70438. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DIS-
ASTER-RELATED PERSONAL CASUALTY LOSSES.
For purposes of applying section 304(b) of the Taxpayer Cer-
tainty and Disaster Tax Relief Act of 2020 (division EE of Public
Law 116–260), section 301 of such Act shall be applied by sub-
stituting the date of the enactment of this section for ‘‘the date
of the enactment of this Act’’ each place it appears.
SEC. 70439. RESTORATION OF TAXABLE REIT SUBSIDIARY ASSET TEST.
(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by striking
‘‘20 percent’’ and inserting ‘‘25 percent’’.
26 USC 856 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2025.
CHAPTER 5—ENDING GREEN NEW DEAL SPENDING,
PROMOTING AMERICA-FIRST ENERGY, AND OTHER
REFORMS
Subchapter A—Termination of Green New Deal Subsidies
SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE
CREDIT.
Section 25E(g) is amended by striking ‘‘December 31, 2032’’
and inserting ‘‘September 30, 2025’’.
SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT.
(a) IN GENERAL.—Section 30D(h) is amended by striking ‘‘placed
in service after December 31, 2032’’ and inserting ‘‘acquired after
September 30, 2025’’.
(b) CONFORMING AMENDMENTS.—Section 30D(e) is amended—
(1) in paragraph (1)(B)—
(A) in clause (iii), by inserting ‘‘and’’ after the comma
at the end,
(B) in clause (iv), by striking ‘‘, and’’ and inserting
a period, and
(C) by striking clause (v), and
(2) in paragraph (2)(B)—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 251
(A) in clause (ii), by inserting ‘‘and’’ after the comma
at the end,
(B) in clause (iii), by striking the comma at the end
and inserting a period, and
(C) by striking clauses (iv) through (vi).
SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN
VEHICLES CREDIT.
Section 45W(g) is amended by striking ‘‘December 31, 2032’’
and inserting ‘‘September 30, 2025’’.
SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY CREDIT.
Section 30C(i) is amended by striking ‘‘December 31, 2032’’
and inserting ‘‘June 30, 2026’’.
SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVE-
MENT CREDIT.
(a) IN GENERAL.—Section 25C(h) is amended by striking ‘‘placed
in service’’ and all that follows through ‘‘December 31, 2032’’ and
inserting ‘‘placed in service after December 31, 2025’’.
(b) CONFORMING AMENDMENT.—Section 25C(d)(2)(C) is
amended to read as follows:
‘‘(C) Any oil furnace or hot water boiler which—
‘‘(i) meets or exceeds 2021 Energy Star efficiency
criteria, and
‘‘(ii) is rated by the manufacturer for use with
fuel blends at least 20 percent of the volume of which
consists of an eligible fuel.’’.
SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT.
(a) IN GENERAL.—Section 25D(h) is amended by striking ‘‘to
property placed in service after December 31, 2034’’ and inserting
‘‘with respect to any expenditures made after December 31, 2025’’.
(b) CONFORMING AMENDMENTS.—Section 25D(g) is amended—
(1) in paragraph (2), by inserting ‘‘and’’ after the comma
at the end,
(2) in paragraph (3), by striking ‘‘ and before January
1, 2033, 30 percent,’’ and inserting ‘‘30 percent.’’, and
(3) by striking paragraphs (4) and (5).
SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL
BUILDINGS DEDUCTION.
Section 179D is amended by adding at the end the following
new subsection:
‘‘(i) TERMINATION.—This section shall not apply with respect
to property the construction of which begins after June 30, 2026.’’.
SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT.
Section 45L(h) is amended by striking ‘‘December 31, 2032’’
and inserting ‘‘June 30, 2026’’.
SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROP-
ERTY.
(a) ENERGY PROPERTY.—Section 168(e)(3)(B)(vi), as amended
by section 13703 of Public Law 117–169, is amended—
(1) by striking subclause (I), and
(2) by redesignating subclauses (II) and (III) as subclauses
(I) and (II), respectively.
139 STAT. 252 PUBLIC LAW 119–21—JULY 4, 2025
26 USC 168 note. (b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to property the construction of which begins after
December 31, 2024.
SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER
PRODUCTION CREDIT.
(a) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—Section 45U(c) is amended by adding at the end the following
new paragraph:
‘‘(3) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
‘‘(A) IN GENERAL.—No credit shall be determined under
subsection (a) for any taxable year beginning after the
date of enactment of this paragraph if the taxpayer is
a specified foreign entity (as defined in section
7701(a)(51)(B)).
‘‘(B) OTHER PROHIBITED FOREIGN ENTITIES.—No credit
shall be determined under subsection (a) for any taxable
year beginning after the date which is 2 years after the
date of enactment of this paragraph if the taxpayer is
a foreign-influenced entity (as defined in section
7701(a)(51)(D), without regard to clause (i)(II) thereof).’’.
26 USC 45U (b) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to taxable years beginning after the date of enactment
of this Act.
SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION
CREDIT.
Section 45V(c)(3)(C) is amended by striking ‘‘January 1, 2033’’
and inserting ‘‘January 1, 2028’’.
SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELEC-
TRICITY PRODUCTION CREDIT.
Definitions. (a) TERMINATION FOR WIND AND SOLAR FACILITIES.—Section
45Y(d) is amended—
(1) in paragraph (1), by striking ‘‘The amount of’’ and
inserting ‘‘Subject to paragraph (4), the amount of’’, and
(2) by striking paragraph (3) and inserting the following
new paragraphs:
‘‘(3) APPLICABLE YEAR.—For purposes of this subsection,
the term ‘applicable year’ means calendar year 2032.
‘‘(4) TERMINATION FOR WIND AND SOLAR FACILITIES.—
‘‘(A) IN GENERAL.—This section shall not apply with
respect to any applicable facility placed in service after
December 31, 2027.
‘‘(B) APPLICABLE FACILITY.—For purposes of this para-
graph, the term ‘applicable facility’ means a qualified
facility which—
‘‘(i) uses wind to produce electricity (within the
meaning of such term as used in section 45(d)(1), as
determined without regard to any requirement under
such section with respect to the date on which construc-
tion of property begins), or
‘‘(ii) uses solar energy to produce electricity (within
the meaning of such term as used in section 45(d)(4),
as determined without regard to any requirement
under such section with respect to the date on which
construction of property begins).’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 253
(b) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—Section 45Y is amended—
(1) in subsection (b)(1), by adding at the end the following
new subparagraph:
‘‘(E) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN
ENTITIES.—The term ‘qualified facility’ shall not include
any facility for which construction begins after December
31, 2025, if the construction of such facility includes any
material assistance from a prohibited foreign entity (as
defined in section 7701(a)(52)).’’, and
(2) in subsection (g), by adding at the end the following
new paragraph:
‘‘(13) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
‘‘(A) IN GENERAL.—No credit shall be determined under
subsection (a) for any taxable year if the taxpayer is—
‘‘(i) a specified foreign entity (as defined in section
7701(a)(51)(B)), or
‘‘(ii) a foreign-influenced entity (as defined in sec-
tion 7701(a)(51)(D), without regard to clause (i)(II)
thereof).
‘‘(B) EFFECTIVE CONTROL.—In the case of a taxpayer Determination.
for which section 7701(a)(51)(D)(i)(II) is determined to Applicability.
apply for any taxable year, no credit shall be determined
under subsection (a) for such taxable year if such deter-
mination relates to a qualified facility described in sub-
section (b)(1).’’.
(c) DEFINITIONS RELATING TO PROHIBITED FOREIGN ENTITIES.—
Section 7701(a) is amended by adding at the end the following
new paragraphs:
‘‘(51) PROHIBITED FOREIGN ENTITY.—
‘‘(A) IN GENERAL.—
‘‘(i) DEFINITION.—The term ‘prohibited foreign
entity’ means a specified foreign entity or a foreign-
influenced entity.
‘‘(ii) DETERMINATION.—
‘‘(I) IN GENERAL.—Subject to subclause (II),
for any taxable year, the determination as to
whether an entity is a specified foreign entity or
foreign-influenced entity shall be made as of the
last day of such taxable year.
‘‘(II) INITIAL TAXABLE YEAR.—For purposes of
the first taxable year beginning after the date
of enactment of this paragraph, the determination
as to whether an entity is a specified foreign entity
described in clauses (i) through (iv) of subpara-
graph (B) shall be made as of the first day of
such taxable year.
‘‘(B) SPECIFIED FOREIGN ENTITY.—For purposes of this
paragraph, the term ‘specified foreign entity’ means—
‘‘(i) a foreign entity of concern described in
subparagraph (A), (B), (D), or (E) of section 9901(8)
of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Public Law
116–283; 15 U.S.C. 4651),
‘‘(ii) an entity identified as a Chinese military com-
pany operating in the United States in accordance
139 STAT. 254 PUBLIC LAW 119–21—JULY 4, 2025
with section 1260H of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year
2021 (Public Law 116–283; 10 U.S.C. 113 note),
‘‘(iii) an entity included on a list required by clause
(i), (ii), (iv), or (v) of section 2(d)(2)(B) of Public Law
117–78 (135 Stat. 1527),
‘‘(iv) an entity specified under section 154(b) of
the National Defense Authorization Act for Fiscal Year
2024 (Public Law 118–31; 10 U.S.C. note prec. 4651),
or
‘‘(v) a foreign-controlled entity.
‘‘(C) FOREIGN-CONTROLLED ENTITY.—For purposes of
subparagraph (B), the term ‘foreign-controlled entity’
means—
‘‘(i) the government (including any level of govern-
ment below the national level) of a covered nation,
‘‘(ii) an agency or instrumentality of a government
described in clause (i),
‘‘(iii) a person who is a citizen or national of a
covered nation, provided that such person is not an
individual who is a citizen, national, or lawful perma-
nent resident of the United States,
‘‘(iv) an entity or a qualified business unit (as
defined in section 989(a)) incorporated or organized
under the laws of, or having its principal place of
business in, a covered nation, or
‘‘(v) an entity (including subsidiary entities) con-
trolled (as determined under subparagraph (G)) by an
entity described in clause (i), (ii), (iii), or (iv).
‘‘(D) FOREIGN-INFLUENCED ENTITY.—
‘‘(i) IN GENERAL.—For purposes of subparagraph
(A), the term ‘foreign-influenced entity’ means an
entity—
‘‘(I) with respect to which, during the taxable
year—
‘‘(aa) a specified foreign entity has the
direct authority to appoint a covered officer
of such entity,
‘‘(bb) a single specified foreign entity owns
at least 25 percent of such entity,
‘‘(cc) one or more specified foreign entities
own in the aggregate at least 40 percent of
such entity, or
‘‘(dd) at least 15 percent of the debt of
such entity has been issued, in the aggregate,
to 1 or more specified foreign entities, or
‘‘(II) which, during the previous taxable year,
made a payment to a specified foreign entity pursu-
ant to a contract, agreement, or other arrangement
which entitles such specified foreign entity (or an
entity related to such specified foreign entity) to
exercise effective control over—
‘‘(aa) any qualified facility or energy stor-
age technology of the taxpayer (or any person
related to the taxpayer), or
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 255
‘‘(bb) with respect to any eligible compo-
nent produced by the taxpayer (or any person
related to the taxpayer)—
‘‘(AA) the extraction, processing, or
recycling of any applicable critical min-
eral, or
‘‘(BB) the production of an eligible
component which is not an applicable crit-
ical mineral.
‘‘(ii) EFFECTIVE CONTROL.—
‘‘(I) IN GENERAL.—
‘‘(aa) GENERAL RULE.—Subject to sub-
clause (II), for purposes of clause (i)(II), the
term ‘effective control’ means 1 or more agree-
ments or arrangements similar to those
described in subclauses (II) and (III) which
provide 1 or more contractual counterparties
of a taxpayer with specific authority over key
aspects of the production of eligible compo-
nents, energy generation in a qualified facility,
or energy storage which are not included in
the measures of control through authority,
ownership, or debt held which are described
in clause (i)(I).
‘‘(bb) GUIDANCE.—The Secretary shall Regulations.
issue such guidance as is necessary to carry Contracts.
out the purposes of this clause, including the
establishment of rules to prevent entities from
evading, circumventing, or abusing the
application of the restrictions described
subparagraph (C) and subclauses (II) and (III)
of this clause through a contract, agreement,
or other arrangement.
‘‘(II) APPLICATION OF RULES PRIOR TO ISSUANCE
OF GUIDANCE.—During any period prior to the date
that the guidance described in subclause (I)(bb)
is issued by the Secretary, for purposes of clause
(i)(II), the term ‘effective control’ means the unre-
stricted contractual right of a contractual
counterparty to—
‘‘(aa) determine the quantity or timing of
production of an eligible component produced
by the taxpayer,
‘‘(bb) determine the amount or timing of
activities related to the production of elec-
tricity undertaken at a qualified facility of the
taxpayer or the storage of electrical energy
in energy storage technology of the taxpayer,
‘‘(cc) determine which entity may purchase
or use the output of a production unit of the
taxpayer that produces eligible components,
‘‘(dd) determine which entity may pur-
chase or use the output of a qualified facility
of the taxpayer,
‘‘(ee) restrict access to data critical to
production or storage of energy undertaken
at a qualified facility of the taxpayer, or to
139 STAT. 256 PUBLIC LAW 119–21—JULY 4, 2025
the site of production or any part of a qualified
facility or energy storage technology of the
taxpayer, to the personnel or agents of such
contractual counterparty, or
‘‘(ff) on an exclusive basis, maintain,
repair, or operate any plant or equipment
which is necessary to the production by the
taxpayer of eligible components or electricity.
Intellectual ‘‘(III) LICENSING AND OTHER AGREEMENTS.—
property. ‘‘(aa) IN GENERAL.—In addition to sub-
clause (II), for purposes of clause (i)(II), the
term ‘effective control’ means, with respect to
a licensing agreement for the provision of
intellectual property (or any other contract,
agreement or other arrangement entered into
with a contractual counterparty related to
such licensing agreement) with respect to a
qualified facility, energy storage technology,
or the production of an eligible component,
any of the following:
‘‘(AA) A contractual right retained by
the contractual counterparty to specify or
otherwise direct 1 or more sources of
components, subcomponents, or applicable
critical minerals utilized in a qualified
facility, energy storage technology, or in
the production of an eligible component.
‘‘(BB) A contractual right retained by
the contractual counterparty to direct the
operation of any qualified facility, any
energy storage technology, or any produc-
tion unit that produces an eligible compo-
nent.
‘‘(CC) A contractual right retained by
the contractual counterparty to limit the
taxpayer’s utilization of intellectual prop-
erty related to the operation of a qualified
facility or energy storage technology, or
in the production of an eligible component.
‘‘(DD) A contractual right retained by
the contractual counterparty to receive
royalties under the licensing agreement
or any similar agreement (or payments
under any related agreement) beyond the
10th year of the agreement (including
modifications or extensions thereof).
‘‘(EE) A contractual right retained by
the contractual counterparty to direct or
otherwise require the taxpayer to enter
into an agreement for the provision of
services for a duration longer than 2 years
(including any modifications or extensions
thereof).
‘‘(FF) Such contract, agreement, or
other arrangement does not provide the
licensee with all the technical data,
information, and know-how necessary to
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 257
enable the licensee to produce the eligible
component or components subject to the
contract, agreement, or other arrangement
without further involvement from the
contractual counterparty or a specified for-
eign entity.
‘‘(GG) Such contract, agreement, or
other arrangement was entered into (or
modified) on or after the date of enactment
of this paragraph.
‘‘(bb) EXCEPTION.—
‘‘(AA) IN GENERAL.—Item (aa) shall
not apply in the case of a bona fide pur-
chase or sale of intellectual property.
‘‘(BB) BONA FIDE PURCHASE OR
SALE.—For purposes of item (aa), any pur-
chase or sale of intellectual property
where the agreement provides that owner-
ship of the intellectual property reverts
to the contractual counterparty after a
period of time shall not be considered a
bona-fide purchase or sale.
‘‘(IV) PERSONS RELATED TO THE TAXPAYER.—
For purposes of subclauses (I), (II), and (III), the
term ‘taxpayer’ shall include any person related
to the taxpayer.
‘‘(V) CONTRACTUAL COUNTERPARTY.—For pur-
poses of this clause, the term ‘contractual
counterparty’ means an entity with which the tax-
payer has entered into a contract, agreement, or
other arrangement.
‘‘(iii) GUIDANCE.—Not later than December 31, Deadline.
2026, the Secretary shall issue such guidance as is Regulations.
necessary to carry out the purposes of this subpara- Intellectual
property.
graph, including establishment of rules to prevent enti-
ties from evading, circumventing, or abusing the
application of the restrictions against impermissible
technology licensing arrangements with specified for-
eign entities, such as through temporary transfers of
intellectual property, retention by a specified foreign
entity of a reversionary interest in transferred intellec-
tual property, or otherwise.
‘‘(E) PUBLICLY TRADED ENTITIES.—
‘‘(i) IN GENERAL.—
‘‘(I) NONAPPLICATION OF CERTAIN FOREIGN-
CONTROLLED ENTITY RULES.—Subparagraph (C)(v)
shall not apply in the case of any entity the securi-
ties of which are regularly traded on—
‘‘(aa) a national securities exchange which
is registered with the Securities and Exchange
Commission,
‘‘(bb) the national market system estab-
lished pursuant to section 11A of the Securi-
ties and Exchange Act of 1934, or
‘‘(cc) any other exchange or other market
which the Secretary has determined in guid-
ance issued under section 1296(e)(1)(A)(ii) has
139 STAT. 258 PUBLIC LAW 119–21—JULY 4, 2025
rules adequate to carry out the purposes of
part VI of subchapter P of chapter 1 of subtitle
A.
‘‘(II) NONAPPLICATION OF CERTAIN FOREIGN-
INFLUENCED ENTITY RULES.—Subparagraph
(D)(i)(I) shall not apply in the case of any entity—
‘‘(aa) the securities of which are regularly
traded in a manner described in subclause
(I), or
‘‘(bb) for which not less than 80 percent
of the equity securities of such entity are
owned directly or indirectly by an entity which
is described in item (aa).
‘‘(III) EXCLUSION OF EXCHANGES OR MARKETS
IN COVERED NATIONS.—Subclause (I)(cc) shall not
apply with respect to any exchange or market
which—
‘‘(aa) is incorporated or organized under
the laws of a covered nation, or
‘‘(bb) has its principal place of business
in a covered nation.
‘‘(ii) ADDITIONAL FOREIGN-CONTROLLED ENTITY
REQUIREMENTS FOR PUBLICLY TRADED COMPANIES.—In
the case of an entity described in clause (i)(I), such
entity shall be deemed to be a foreign-controlled entity
under subparagraph (C)(v) if such entity is controlled
(as determined under subparagraph (G)) by—
‘‘(I) 1 or more specified foreign entities (as
determined without regard to subparagraph (B)(v))
that are each required to report their beneficial
ownership pursuant to a rule described in clause
(iii)(I)(bb), or
‘‘(II) 1 or more foreign-controlled entities (as
determined without regard to subparagraph (C)(v))
that are each required to report their beneficial
ownership pursuant to a rule described in such
clause.
‘‘(iii) ADDITIONAL FOREIGN-INFLUENCED ENTITY
REQUIREMENTS FOR PUBLICLY TRADED COMPANIES.—In
the case of an entity described in clause (i)(II), such
entity shall be deemed to be a foreign-influenced entity
under subparagraph (D)(i)(I) if—
‘‘(I) during the taxable year—
‘‘(aa) a specified foreign entity has the
authority to appoint a covered officer of such
entity,
‘‘(bb) a single specified foreign entity
required to report its beneficial ownership
under Rule 13d-3 of the Securities and
Exchange Act of 1934 (or, in the case of an
exchange or market described in clause
(i)(I)(cc), an equivalent rule) owns not less
than 25 percent of such entity, or
‘‘(cc) 1 or more specified foreign entities
that are each required to report their bene-
ficial ownership under Rule 13d-3 of the Secu-
rities and Exchange Act of 1934 own, in the
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 259
aggregate, not less than 40 percent of such
entity, or
‘‘(II) such entity has issued debt, as part of
an original issuance, in excess of 15 percent of
its publicly-traded debt to 1 or more specified for-
eign entities.
‘‘(F) COVERED OFFICER.—For purposes of this para-
graph, the term ‘covered officer’ means, with respect to
an entity—
‘‘(i) a member of the board of directors, board of
supervisors, or equivalent governing body,
‘‘(ii) an executive-level officer, including the presi-
dent, chief executive officer, chief operating officer,
chief financial officer, general counsel, or senior vice
president, or
‘‘(iii) an individual having powers or responsibil-
ities similar to those of officers or members described
in clause (i) or (ii).
‘‘(G) DETERMINATION OF CONTROL.—For purposes of
subparagraph (C)(v), the term ‘control’ means—
‘‘(i) in the case of a corporation, ownership (by
vote or value) of more than 50 percent of the stock
in such corporation,
‘‘(ii) in the case of a partnership, ownership of
more than 50 percent of the profits interests or capital
interests in such partnership, or
‘‘(iii) in any other case, ownership of more than
50 percent of the beneficial interests in the entity.
‘‘(H) DETERMINATION OF OWNERSHIP.—For purposes of Applicability.
this paragraph, section 318(a)(2) shall apply for purposes
of determining ownership of stock in a corporation. Similar
principles shall apply for purposes of determining owner-
ship of interests in any other entity.
‘‘(I) OTHER DEFINITIONS.—For purposes of this para-
graph—
‘‘(i) APPLICABLE CRITICAL MINERAL.—The term
‘applicable critical mineral’ has the same meaning
given such term under section 45X(c)(6).
‘‘(ii) COVERED NATION.—The term ‘covered nation’
has the same meaning given such term under section
4872(f)(2) of title 10, United States Code.
‘‘(iii) ELIGIBLE COMPONENT.—The term ‘eligible
component’ has the same meaning given such term
under section 45X(c)(1).
‘‘(iv) ENERGY STORAGE TECHNOLOGY.—The term
‘energy storage technology’ has the same meaning
given such term under section 48E(c)(2).
‘‘(v) QUALIFIED FACILITY.—The term ‘qualified
facility’ means—
‘‘(I) a qualified facility, as defined in section
45Y(b)(1), and
‘‘(II) a qualified facility, as defined in section
48E(b)(3).
‘‘(vi) RELATED.—The term ‘related’ shall have the
same meaning given such term under sections 267(b)
and 707(b).
139 STAT. 260 PUBLIC LAW 119–21—JULY 4, 2025
Applicability. ‘‘(J) BEGINNING OF CONSTRUCTION.—For purposes of
Effective date. applying any provision under this paragraph, the beginning
of construction with respect to any property shall be deter-
mined pursuant to rules similar to the rules under Internal
Revenue Service Notice 2013–29 and Internal Revenue
Service Notice 2018-59 (as well as any subsequently issued
guidance clarifying, modifying, or updating either such
Notice), as in effect on January 1, 2025.
‘‘(K) REGULATIONS AND GUIDANCE.—The Secretary may
prescribe such regulations and guidance as may be nec-
essary or appropriate to carry out the provisions of this
paragraph, including rules to prevent the circumvention
of any rules or restrictions with respect to prohibited for-
eign entities.
‘‘(52) MATERIAL ASSISTANCE FROM A PROHIBITED FOREIGN
ENTITY.—
Definition. ‘‘(A) IN GENERAL.—The term ‘material assistance from
a prohibited foreign entity’ means—
‘‘(i) with respect to any qualified facility or energy
storage technology, a material assistance cost ratio
which is less than the threshold percentage applicable
under subparagraph (B), or
‘‘(ii) with respect to any facility which produces
eligible components, a material assistance cost ratio
which is less than the threshold percentage applicable
under subparagraph (C).
‘‘(B) THRESHOLD PERCENTAGE FOR QUALIFIED FACILITIES
Time periods. AND ENERGY STORAGE TECHNOLOGY.—For purposes of
Effective date. subparagraph (A)(i), the threshold percentage shall be—
‘‘(i) in the case of a qualified facility the construc-
tion of which begins—
‘‘(I) during calendar year 2026, 40 percent,
‘‘(II) during calendar year 2027, 45 percent,
‘‘(III) during calendar year 2028, 50 percent,
‘‘(IV) during calendar year 2029, 55 percent,
and
‘‘(V) after December 31, 2029, 60 percent, and
‘‘(ii) in the case of energy storage technology the
construction of which begins—
‘‘(I) during calendar year 2026, 55 percent,
‘‘(II) during calendar year 2027, 60 percent,
‘‘(III) during calendar year 2028, 65 percent,
‘‘(IV) during calendar year 2029, 70 percent,
and
‘‘(V) after December 31, 2029, 75 percent.
‘‘(C) THRESHOLD PERCENTAGE FOR ELIGIBLE COMPO-
NENTS.—
Time periods. ‘‘(i) IN GENERAL.—For purposes of subparagraph
Effective dates. (A)(ii), the threshold percentage shall be—
‘‘(I) in the case of any solar energy component
(as such term is defined in section 45X(c)(3)(A))
which is sold—
‘‘(aa) during calendar year 2026, 50 per-
cent,
‘‘(bb) during calendar year 2027, 60 per-
cent,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 261
‘‘(cc) during calendar year 2028, 70 per-
cent,
‘‘(dd) during calendar year 2029, 80 per-
cent, and
‘‘(ee) after December 31, 2029, 85 percent,
‘‘(II) in the case of any wind energy component
(as such term is defined in section 45X(c)(4)(A))
which is sold—
‘‘(aa) during calendar year 2026, 85 per-
cent, and
‘‘(bb) during calendar year 2027, 90 per-
cent,
‘‘(III) in the case of any inverter described
in subparagraphs (B) through (G) of section
45X(c)(2) which is sold—
‘‘(aa) during calendar year 2026, 50 per-
cent,
‘‘(bb) during calendar year 2027, 55 per-
cent,
‘‘(cc) during calendar year 2028, 60 per-
cent,
‘‘(dd) during calendar year 2029, 65 per-
cent, and
‘‘(ee) after December 31, 2029, 70 percent,
‘‘(IV) in the case of any qualifying battery
component (as such term is defined in section
45X(c)(5)(A)) which is sold—
‘‘(aa) during calendar year 2026, 60 per-
cent,
‘‘(bb) during calendar year 2027, 65 per-
cent,
‘‘(cc) during calendar year 2028, 70 per-
cent,
‘‘(dd) during calendar year 2029, 80 per-
cent, and
‘‘(ee) after December 31, 2029, 85 percent,
and
‘‘(V) subject to clause (ii), in the case of any
applicable critical mineral (as such term is defined
in section 45X(c)(6)) which is sold—
‘‘(aa) after December 31, 2025, and before
January 1, 2030, 0 percent,
‘‘(bb) during calendar year 2030, 25 per-
cent,
‘‘(cc) during calendar year 2031, 30 per-
cent,
‘‘(dd) during calendar year 2032, 40 per-
cent, and
‘‘(ee) after December 31, 2032, 50 percent.
‘‘(ii) ADJUSTED THRESHOLD PERCENTAGE FOR
APPLICABLE CRITICAL MINERALS.—Not later than Deadline.
December 31, 2027, the Secretary shall issue threshold
percentages for each of the applicable critical minerals
described in section 45X(c)(6)), which shall—
‘‘(I) apply in lieu of the threshold percentage
determined under clause (i)(V) for each calendar
year, and
139 STAT. 262 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(II) equal or exceed the threshold percentage
which would otherwise apply with respect to such
applicable critical mineral under such clause for
such calendar year, taking into account—
‘‘(aa) domestic geographic availability,
‘‘(bb) supply chain constraints,
‘‘(cc) domestic processing capacity needs,
and
‘‘(dd) national security concerns.
‘‘(D) MATERIAL ASSISTANCE COST RATIO.—
‘‘(i) QUALIFIED FACILITIES AND ENERGY STORAGE
Definition. TECHNOLOGY.—For purposes of subparagraph (A)(i),
the term ‘material assistance cost ratio’ means the
amount (expressed as a percentage) equal to the
quotient of—
‘‘(I) an amount equal to—
‘‘(aa) the total direct costs to the taxpayer
attributable to all manufactured products
(including components) which are incorporated
into the qualified facility or energy storage
technology upon completion of construction,
minus
‘‘(bb) the total direct costs to the taxpayer
attributable to all manufactured products
(including components) which are—
‘‘(AA) incorporated into the qualified
facility or energy storage technology upon
completion of construction, and
‘‘(BB) mined, produced, or manufac-
tured by a prohibited foreign entity,
divided by
‘‘(II) the amount described in subclause (I)(aa).
Definition. ‘‘(ii) ELIGIBLE COMPONENTS.—For purposes of
subparagraph (A)(ii), the term ‘material assistance cost
ratio’ means the amount (expressed as a percentage)
equal to the quotient of—
‘‘(I) an amount equal to—
‘‘(aa) with respect to an eligible compo-
nent, the total direct material costs that are
paid or incurred (within the meaning of section
461 and any regulations issued under section
263A) by the taxpayer for production of such
eligible component, minus
‘‘(bb) with respect to an eligible compo-
nent, the total direct material costs that are
paid or incurred (within the meaning of section
461 and any regulations issued under section
263A) by the taxpayer for production of such
eligible component that are mined, produced,
or manufactured by a prohibited foreign entity,
divided by
‘‘(II) the amount described in subclause (I)(aa).
‘‘(iii) SAFE HARBOR TABLES.—
Deadline. ‘‘(I) IN GENERAL.—Not later than December
Guidance. 31, 2026, the Secretary shall issue safe harbor
tables (and such other guidance as deemed nec-
essary) to—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 263
‘‘(aa) identify the percentage of total direct
costs of any manufactured product which is
attributable to a prohibited foreign entity,
‘‘(bb) identify the percentage of total direct
material costs of any eligible component which
is attributable to a prohibited foreign entity,
and
‘‘(cc) provide all rules necessary to deter- Determination.
mine the amount of a taxpayer’s material
assistance from a prohibited foreign entity
within the meaning of this paragraph.
‘‘(II) SAFE HARBORS PRIOR TO ISSUANCE.—For Effective date.
purposes of this paragraph, prior to the date on
which the Secretary issues the safe harbor tables
described in subclause (I), and for construction
of a qualified facility or energy storage technology
which begins on or before the date which is 60
days after the date of issuance of such tables,
a taxpayer may—
‘‘(aa) use the tables included in Internal
Revenue Service Notice 2025–08 to establish
the percentage of the total direct costs of any
listed eligible component and any manufac-
tured product, and
‘‘(bb) rely on a certification by the supplier Certification.
of the manufactured product, eligible compo-
nent, or constituent element, material, or sub-
component of an eligible component—
‘‘(AA) of the total direct costs or the
total direct material costs, as applicable,
of such product or component that was
not produced or manufactured by a
prohibited foreign entity, or
‘‘(BB) that such product or component
was not produced or manufactured by a
prohibited foreign entity.
‘‘(III) EXCEPTION.—Notwithstanding sub-
clauses (I) and (II)—
‘‘(aa) if the taxpayer knows (or has reason
to know) that a manufactured product or
eligible component was produced or manufac-
tured by a prohibited foreign entity, the tax-
payer shall treat all direct costs with respect
to such manufactured product, or all direct
material costs with respect to such eligible
component, as attributable to a prohibited for-
eign entity, and
‘‘(bb) if the taxpayer knows (or has reason
to know) that the certification referred to in
subclause (II)(bb) pertaining to a manufac-
tured product or eligible component is inac-
curate, the taxpayer may not rely on such
certification.
‘‘(IV) CERTIFICATION REQUIREMENT.—In a
manner consistent with Treasury Regulation sec-
tion 1.45X–4(c)(4)(i) (as in effect on the date of
139 STAT. 264 PUBLIC LAW 119–21—JULY 4, 2025
enactment of this paragraph), the certification
referred to in subclause (II)(bb) shall—
‘‘(aa) include—
‘‘(AA) the supplier’s employer identi-
fication number, or
‘‘(BB) any such similar identification
number issued by a foreign government,
‘‘(bb) be signed under penalties of perjury,
Time period. ‘‘(cc) be retained by the supplier and the
taxpayer for a period of not less than 6 years
and shall be provided to the Secretary upon
request, and
‘‘(dd) be from the supplier from which the
taxpayer purchased any manufactured
product, eligible component, or constituent ele-
ments, materials, or subcomponents of an
eligible component, stating—
‘‘(AA) that such property was not pro-
duced or manufactured by a prohibited
foreign entity and that the supplier does
not know (or have reason to know) that
any prior supplier in the chain of produc-
tion of that property is a prohibited for-
eign entity,
‘‘(BB) for purposes of section 45X, the
total direct material costs for each compo-
nent, constituent element, material, or
subcomponent that were not produced or
manufactured by a prohibited foreign
entity, or
‘‘(CC) for purposes of section 45Y or
section 48E, the total direct costs attrib-
utable to all manufactured products that
were not produced or manufactured by a
prohibited foreign entity.
Designation. ‘‘(iv) EXISTING CONTRACT.—Upon the election of
Effective dates. the taxpayer (in such form and manner as the Sec-
retary shall designate), in the case of any manufac-
tured product, eligible component, or constituent ele-
ment, material, or subcomponent of an eligible compo-
nent which is—
‘‘(I) acquired by the taxpayer, or manufactured
or assembled by or for the taxpayer, pursuant
to a binding written contract which was entered
into prior to June 16, 2025, and
‘‘(II)(aa) placed into service before January 1,
2030 (or, in the case of an applicable facility, as
defined in section 45Y(d)(4)(B), before January 1,
2028) in a facility the construction of which began
before August 1, 2025, or
‘‘(bb) in the case of a constituent element,
material, or subcomponent, used in a product sold
before January 1, 2030,
the cost to the taxpayer with respect to such product,
component, element, material, or subcomponent shall
not be included for purposes of determining the mate-
rial assistance cost ratio under this subparagraph.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 265
‘‘(v) ANTI-CIRCUMVENTION RULES.—The Secretary Guidance.
shall prescribe such regulations and guidance as may
be necessary or appropriate to prevent circumvention
of the rules under this subparagraph, including preven-
tion of—
‘‘(I) any abuse of the exception provided under
clause (iv) through the stockpiling of any manufac-
tured product, eligible component, or constituent
element, material, or subcomponent of an eligible
component during any period prior to the applica-
tion of the requirements under this paragraph,
or
‘‘(II) any evasion with respect to the require-
ments of this subparagraph where the facts and
circumstances demonstrate that the beginning of
construction of a qualified facility or energy storage
technology has not in fact occurred.
‘‘(E) OTHER DEFINITIONS.—For purposes of this para-
graph—
‘‘(i) ELIGIBLE COMPONENT.—The term ‘eligible
component’ means—
‘‘(I) any property described in section 45X(c)(1),
or
‘‘(II) any component which is identified by the
Secretary pursuant to regulations or guidance
issued under subparagraph (G).
‘‘(ii) ENERGY STORAGE TECHNOLOGY.—The term
‘energy storage technology’ has the same meaning
given such term under section 48E(c)(2).
‘‘(iii) MANUFACTURED PRODUCT.—The term ‘manu-
factured product’ means—
‘‘(I) a manufactured product which is a compo-
nent of a qualified facility, as described in section
45Y(g)(11)(B) and any guidance issued thereunder,
or
‘‘(II) any product which is identified by the
Secretary pursuant to regulations or guidance
issued under subparagraph (G).
‘‘(iv) QUALIFIED FACILITY.—The term ‘qualified
facility’ means—
‘‘(I) a qualified facility, as defined in section
45Y(b)(1),
‘‘(II) a qualified facility, as defined in section
48E(b)(3), and
‘‘(III) any qualified interconnection property
(as defined in section 48E(b)(4)) which is part of
the qualified investment with respect to a qualified
facility (as described in section 48E(b)(1)).
‘‘(F) DETERMINATION OF OWNERSHIP; BEGINNING OF
CONSTRUCTION.—Rules similar to the rules under subpara- Applicability.
graphs (H) and (J) of paragraph (51) shall apply for pur-
poses of this paragraph.
‘‘(G) REGULATIONS AND GUIDANCE.—The Secretary may
prescribe such regulations and guidance as may be nec-
essary or appropriate to carry out the provisions of this
paragraph, including—
139 STAT. 266 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(i) identification of components or products for
purposes of clauses (i) and (iii) of subparagraph (E),
and
‘‘(ii) for purposes of subparagraph (A)(ii), rules to
address facilities which produce more than one eligible
component.’’.
(d) DENIAL OF CREDIT FOR CERTAIN WIND AND SOLAR LEASING
ARRANGEMENTS.—Section 45Y is amended by adding at the end
the following new subsection:
‘‘(h) DENIAL OF CREDIT FOR WIND AND SOLAR LEASING ARRANGE-
MENTS.—No credit shall be determined under this section with
respect to any production of electricity during the taxable year
with respect to property described in paragraph (1) or (4) of section
25D(d) (as applied by substituting ‘lessee’ for ‘taxpayer’) if the
taxpayer rents or leases such property to a third party during
such taxable year.’’.
(e) EMISSIONS RATES TABLES.—Section 45Y(b)(2)(C) is amended
by adding at the end the following new clause:
Determinations. ‘‘(iii) EXISTING STUDIES.—For purposes of clause
(i), in determining greenhouse gas emissions rates for
types or categories of facilities for the purpose of deter-
mining whether a facility satisfies the requirements
under paragraph (1), the Secretary shall consider
studies published on or before the date of enactment
of this clause which demonstrate a net lifecycle green-
house gas emissions rate which is not greater than
zero using widely accepted lifecycle assessment con-
cepts, such as concepts described in standards devel-
oped by the International Organization for Standard-
ization.’’.
(f) NUCLEAR ENERGY COMMUNITIES.—
(1) IN GENERAL.—Section 45(b)(11) is amended—
(A) in subparagraph (B)—
(i) in clause (ii)(II), by striking ‘‘or’’ at the end,
(ii) in clause (iii)(II), by striking the period at
the end and inserting ‘‘, or’’, and
(iii) by adding at the end the following new clause:
Time period. ‘‘(iv) for purposes of any qualified facility which
is an advanced nuclear facility, a metropolitan statis-
tical area which has (or, at any time during the period
beginning after December 31, 2009, had) 0.17 percent
or greater direct employment related to the advance-
ment of nuclear power, including employment related
to—
‘‘(I) an advanced nuclear facility,
‘‘(II) advanced nuclear power research and
development,
‘‘(III) nuclear fuel cycle research, development,
or production, including mining, enrichment,
manufacture, storage, disposal, or recycling of
nuclear fuel, and
‘‘(IV) the manufacturing or assembly of compo-
nents used in an advanced nuclear facility.’’, and
(B) by adding at the end the following new subpara-
graph:
‘‘(C) ADVANCED NUCLEAR FACILITIES.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 267
‘‘(i) IN GENERAL.—Subject to clause (ii), for pur- Definition.
poses of subparagraph (B)(iv), the term ‘advanced
nuclear facility’ means any nuclear facility the reactor
design for which is approved in the manner described
in section 45J(d)(2).
‘‘(ii) SPECIAL RULE.—For purposes of clause (i), a
facility shall be deemed to have a reactor design which
is approved in the manner described in section
45J(d)(2) if the Nuclear Regulatory Commission has
authorized construction and issued a site-specific
construction permit or combined license with respect
to such facility (without regard to whether the reactor
design was approved after December 31, 1993).’’.
(2) NONAPPLICATION FOR CLEAN ELECTRICITY INVESTMENT
CREDIT.—Section 48E(a)(3)(A)(i) is amended by inserting ‘‘, as
applied without regard to clause (iv) thereof’’ after ‘‘section
45(b)(11)(B)’’.
(g) CONFORMING AMENDMENTS.—Section 45Y(b)(1) is
amended—
(1) by redesignating subparagraph (D) as subparagraph
(E), and
(2) by inserting after subparagraph (C) the following new
subparagraph:
‘‘(D) DETERMINATION OF CAPACITY.—For purposes of
subparagraph (C), additions of capacity of a facility shall
be determined in any reasonable manner, including based
on—
‘‘(i) determinations by, or reports to, the Federal
Energy Regulatory Commission (including interconnec-
tion agreements), the Nuclear Regulatory Commission,
or any similar entity, reflecting additions of capacity,
‘‘(ii) determinations or reports reflecting additions
of capacity made by an independent professional engi-
neer,
‘‘(iii) reports to, or issued by, regional transmission
organizations or independent system operators
reflecting additions of capacity, or
‘‘(iv) any other method or manner provided by
the Secretary.’’.
(h) PROHIBITION ON TRANSFER OF CREDITS TO SPECIFIED FOR-
EIGN ENTITIES.—Section 6418(g) is amended by adding at the end
the following new paragraph:
‘‘(5) PROHIBITION ON TRANSFER OF CREDITS TO SPECIFIED
FOREIGN ENTITIES.—With respect to any eligible credit described
in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A),
an eligible taxpayer may not elect to transfer any portion
of such credit to a taxpayer that is a specified foreign entity
(as defined in section 7701(a)(51)(B)).’’.
(i) EXTENSION OF PERIOD OF LIMITATIONS FOR ERRORS RELATING
TO DETERMINING OF MATERIAL ASSISTANCE FROM A PROHIBITED
FOREIGN ENTITY.—Section 6501 is amended—
(1) by redesignating subsection (o) as subsection (p), and
(2) by inserting after subsection (n) the following new sub-
section:
‘‘(o) MATERIAL ASSISTANCE FROM A PROHIBITED FOREIGN
ENTITY.—In the case of a deficiency attributable to an error with
139 STAT. 268 PUBLIC LAW 119–21—JULY 4, 2025
respect to the determination under section 7701(a)(52) for any tax-
able year, such deficiency may be assessed at any time within
6 years after the return for such year was filed.’’.
(j) IMPOSITION OF ACCURACY-RELATED PENALTIES.—
(1) IN GENERAL.—Section 6662 is amended by adding at
the end the following new subsection:
‘‘(m) SUBSTANTIAL UNDERSTATEMENT OF INCOME TAX DUE TO
DISALLOWANCE OF APPLICABLE ENERGY CREDITS.—
‘‘(1) IN GENERAL.—In the case of a taxpayer for which
there is a disallowance of an applicable energy credit for any
taxable year, for purposes of determining whether there is
a substantial understatement of income tax for such taxable
year, subsection (d)(1) shall be applied—
‘‘(A) in subparagraphs (A) and (B), by substituting
‘1 percent’ for ‘10 percent’ each place it appears, and
‘‘(B) without regard to subparagraph (C).
‘‘(2) DISALLOWANCE OF AN APPLICABLE ENERGY CREDIT.—
Definition. For purposes of this subsection, the term ‘disallowance of an
applicable energy credit’ means the disallowance of a credit
under section 45X, 45Y, or 48E by reason of overstating the
material assistance cost ratio (as determined under section
7701(a)(52)) with respect to any qualified facility, energy stor-
age technology, or facility which produces eligible components.’’.
(2) CONFORMING AMENDMENT.—Section 6417(d)(6) is
amended by adding at the end the following new subparagraph:
‘‘(D) DISALLOWANCE OF AN APPLICABLE ENERGY
CREDIT.—In the case of an applicable entity which made
an election under subsection (a) with respect to an
applicable credit for which there is a disallowance described
in section 6662(m)(2), subparagraph (A) shall apply with
respect to any excessive payment resulting from such dis-
allowance.’’.
(k) PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFI-
CATION PROVIDED BY SUPPLIER.—
(1) IN GENERAL.—Part I of subchapter B of chapter 68
is amended by inserting after section 6695A the following new
section:
26 USC 6695B. ‘‘SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CER-
TIFICATION PROVIDED BY SUPPLIER.
‘‘(a) IMPOSITION OF PENALTY.—If—
‘‘(1) a person—
‘‘(A) provides a certification described in clause
(iii)(II)(bb) of section 7701(a)(52)(D) with respect to any
manufactured product, eligible component, or constituent
element, material, or subcomponent of an eligible compo-
nent, and
‘‘(B) knows, or reasonably should have known, that
the certification would be used in connection with a deter-
mination under such section,
‘‘(2) such person knows, or reasonably should have known,
that such certification is inaccurate or false with respect to—
‘‘(A) whether such property was produced or manufac-
tured by a prohibited foreign entity, or
‘‘(B) the total direct costs or total direct material costs
of such property that was not produced or manufactured
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 269
by a prohibited foreign entity that were provided on such
certification, and
‘‘(3) the inaccuracy or falsity described in paragraph (2)
resulted in the disallowance of an applicable energy credit
(as defined in section 6662(m)(2)) and an understatement of
income tax (within the meaning of section 6662(d)(2)) for the
taxable year in an amount which exceeds the lesser of—
‘‘(A) 5 percent of the tax required to be shown on
the return for the taxable year, or
‘‘(B) $100,000,
then such person shall pay a penalty in the amount determined
under subsection (b).
‘‘(b) AMOUNT OF PENALTY.—The amount of the penalty imposed
under subsection (a) on any person with respect to a certification
shall be equal to the greater of—
‘‘(1) 10 percent of the amount of the underpayment (as
defined in section 6664(a)) solely attributable to the inaccuracy
or falsity described in subsection (a)(2), or
‘‘(2) $5,000.
‘‘(c) EXCEPTION.—No penalty shall be imposed under subsection
(a) if the person establishes to the satisfaction of the Secretary
that any inaccuracy or falsity described in subsection (a)(2) is due
to a reasonable cause and not willful neglect.
‘‘(d) DEFINITIONS.—Any term used in this section which is also
used in section 7701(a)(52) shall have the meaning given such
term in such section.’’.
(2) CLERICAL AMENDMENTS.—
(A) Section 6696 is amended—
(i) in the heading, by striking ‘‘AND 6695A’’ and
inserting ‘‘6695A, AND 6695B’’,
(ii) in subsections (a), (b), and (e), by striking ‘‘and
6695A’’ each place it appears and inserting ‘‘6695A,
and 6695B’’,
(iii) in subsection (c), by striking ‘‘or 6695A’’ and
inserting ‘‘6695A, or 6695B’’, and
(iv) in subsection (d)—
(I) in paragraph (1), by inserting ‘‘(or, in the
case of any penalty under section 6695B, 6 years)’’
after ‘‘assessed within 3 years’’, and
(II) in paragraph (2), by inserting ‘‘(or, in the
case of any claim for refund of an overpayment
of any penalty assessed under section 6695B, 6
years)’’ after ‘‘filed within 3 years’’.
(B) The table of sections for part I of subchapter B
of chapter 68 is amended by inserting after item relating 26 USC
to section 6695A the following new item: prec. 6671.
‘‘Sec. 6695B. Penalty for substantial misstatements on certification provided by
supplier.’’.
(l) EFFECTIVE DATES.— Applicability.
(1) IN GENERAL.—Except as provided in paragraphs (2), 26 USC 45 note.
(3), and (4), the amendments made by this section shall apply
to taxable years beginning after the date of enactment of this
Act.
(2) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTI-
TIES.—The amendments made by subsection (b)(1) shall apply
to facilities for which construction begins after December 31,
2025.
139 STAT. 270 PUBLIC LAW 119–21—JULY 4, 2025
(3) PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFI-
CATION PROVIDED BY SUPPLIER.—The amendments made by sub-
section (k) shall apply to certifications provided after December
31, 2025.
(4) TERMINATION FOR WIND AND SOLAR FACILITIES.—The
amendments made by subsection (a) shall apply to facilities
the construction of which begins after the date which is 12
months after the date of enactment of this Act.
SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELEC-
TRICITY INVESTMENT CREDIT.
(a) TERMINATION FOR WIND AND SOLAR FACILITIES.—Section
48E(e) is amended—
(1) in paragraph (1), by striking ‘‘The amount of’’ and
inserting ‘‘Subject to paragraph (4), the amount of’’, and
(2) by adding at the end the following new paragraph:
‘‘(4) TERMINATION FOR WIND AND SOLAR FACILITIES.—
‘‘(A) IN GENERAL.—This section shall not apply to any
qualified property placed in service by the taxpayer after
December 31, 2027, which is part of an applicable facility.
Definition. ‘‘(B) APPLICABLE FACILITY.—For purposes of this para-
graph, the term ‘applicable facility’ means a qualified
facility which—
‘‘(i) uses wind to produce electricity (within the
meaning of such term as used in section 45(d)(1), as
determined without regard to any requirement under
such section with respect to the date on which construc-
tion of property begins), or
‘‘(ii) uses solar energy to produce electricity (within
the meaning of such term as used in section 45(d)(4),
as determined without regard to any requirement
under such section with respect to the date on which
construction of property begins).
‘‘(C) EXCEPTION.—This paragraph shall not apply with
respect to any energy storage technology which is placed
in service at any applicable facility.’’.
(b) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
(1) IN GENERAL.—Section 48E is amended—
(A) in subsection (b)—
(i) by redesignating paragraph (6) as paragraph
(7), and
(ii) by inserting after paragraph (5) the following
new paragraph:
‘‘(6) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTI-
TIES.—The terms ‘qualified facility’ and ‘qualified interconnec-
tion property’ shall not include any facility or property the
construction, reconstruction, or erection of which begins after
December 31, 2025, if the construction, reconstruction, or erec-
tion of such facility or property includes any material assistance
from a prohibited foreign entity (as defined in section
7701(a)(52)).’’, and
(B) in subsection (c), by adding at the end the following
new paragraph:
‘‘(3) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTI-
TIES.—The term ‘energy storage technology’ shall not include
any property the construction of which begins after December
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 271
31, 2025, if the construction of such property includes any
material assistance from a prohibited foreign entity (as defined
in section 7701(a)(52)).’’.
(2) ADDITIONAL RESTRICTIONS.—Section 48E(d) is amended
by adding at the end the following new paragraph:
‘‘(6) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
‘‘(A) IN GENERAL.—No credit shall be determined under
subsection (a) for any taxable year if the taxpayer is—
‘‘(i) a specified foreign entity (as defined in section
7701(a)(51)(B)), or
‘‘(ii) a foreign-influenced entity (as defined in sec-
tion 7701(a)(51)(D), without regard to clause (i)(II)
thereof).
‘‘(B) EFFECTIVE CONTROL.—In the case of a taxpayer Determination.
for which section 7701(a)(51)(D)(i)(II) is determined to Applicability.
apply for any taxable year, no credit shall be determined
under subsection (a) for such taxable year if such deter-
mination relates to a qualified facility described in sub-
section (b)(3) or energy storage technology described in
subsection (c)(2).’’.
(3) RECAPTURE.—
(A) IN GENERAL.—Section 50(a) is amended—
(i) by redesignating paragraphs (4) through (6)
as paragraphs (5) through (7), respectively,
(ii) by inserting after paragraph (3) the following
new paragraph:
‘‘(4) PAYMENTS TO PROHIBITED FOREIGN ENTITIES.— Definitions.
‘‘(A) IN GENERAL.—If there is an applicable payment Time period.
made by a specified taxpayer before the close of the 10-
year period beginning on the date such taxpayer placed
in service investment credit property which is eligible for
the clean electricity investment credit under section 48E(a),
then the tax under this chapter for the taxable year in
which such applicable payment occurs shall be increased
by 100 percent of the aggregate decrease in the credits
allowed under section 38 for all prior taxable years which
would have resulted solely from reducing to zero any credit
determined under section 46 which is attributable to the
clean electricity investment credit under section 48E(a)
with respect to such property.
‘‘(B) APPLICABLE PAYMENT.—For purposes of this para-
graph, the term ‘applicable payment’ means, with respect
to any taxable year, a payment or payments described
in section 7701(a)(51)(D)(i)(II).
‘‘(C) SPECIFIED TAXPAYER.—For purposes of this para-
graph, the term ‘specified taxpayer’ means any taxpayer
who has been allowed a credit under section 48E(a) for
any taxable year beginning after the date which is 2 years
after the date of enactment of this paragraph.’’,
(iii) in paragraph (5), as redesignated by clause
(i), by striking ‘‘or any applicable transaction to which
paragraph (3)(A) applies,’’ and inserting ‘‘any
applicable transaction to which paragraph (3)(A)
applies, or any applicable payment to which paragraph
(4)(A) applies,’’, and
139 STAT. 272 PUBLIC LAW 119–21—JULY 4, 2025
(iv) in paragraph (7), as redesignated by clause
(i), by striking ‘‘or (3)’’ and inserting ‘‘(3), or (4)’’.
(B) CONFORMING AMENDMENTS.—
(i) Section 1371(d)(1) is amended by striking ‘‘sec-
tion 50(a)(5)’’ and inserting ‘‘section 50(a)(6)’’.
(ii) Section 6418(g)(3) is amended by striking ‘‘sub-
section (a)(5)’’ each place it appears and inserting ‘‘sub-
section (a)(7)’’.
(c) DENIAL OF CREDIT FOR EXPENDITURES FOR CERTAIN WIND
AND SOLAR LEASING ARRANGEMENTS.—
(1) IN GENERAL.—Section 48E is amended—
(A) by redesignating subsection (i) as subsection (j),
and
(B) by inserting after subsection (h) the following new
subsection:
‘‘(i) DENIAL OF CREDIT FOR EXPENDITURES FOR WIND AND SOLAR
LEASING ARRANGEMENTS.—No credit shall be determined under
this section for any qualified investment during the taxable year
with respect to property described in paragraph (1) or (4) of section
25D(d) (as applied by substituting ‘lessee’ for ‘taxpayer’) if the
taxpayer rents or leases such property to a third party during
such taxable year.’’.
(2) CONFORMING RULES.—Section 50 is amended by adding
at the end the following new subsection:
Determination. ‘‘(e) RULES FOR GEOTHERMAL HEAT PUMPS.—For purposes of
this section and section 168, the ownership of energy property
described in section 48(a)(3)(A)(vii) shall be determined without
regard to whether such property is readily usable by a person
other than the lessee or service recipient.’’.
(d) DOMESTIC CONTENT RULES.—Subparagraph (B) of section
48E(a)(3) is amended to read as follows:
Applicability. ‘‘(B) DOMESTIC CONTENT.—Rules similar to the rules
Determination. of section 48(a)(12) shall apply, except that, for purposes
Time periods. of subparagraph (B) of such section and the application
of rules similar to the rules of section 45(b)(9)(B), the
adjusted percentage (as determined under section
45(b)(9)(C)) shall be determined as follows:
‘‘(i) In the case of any qualified investment with
respect to any qualified facility or energy storage tech-
nology the construction of which begins before June
16, 2025, 40 percent (or, in the case of a qualified
facility which is an offshore wind facility, 20 percent).
‘‘(ii) In the case of any qualified investment with
respect to any qualified facility or energy storage tech-
nology the construction of which begins on or after
June 16, 2025, and before January 1, 2026, 45 percent
(or, in the case of a qualified facility which is an
offshore wind facility, 27.5 percent).
‘‘(iii) In the case of any qualified investment with
respect to any qualified facility or energy storage tech-
nology the construction of which begins during cal-
endar year 2026, 50 percent (or, in the case of a quali-
fied facility which is an offshore wind facility, 35 per-
cent).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 273
‘‘(iv) In the case of any qualified investment with Effective date.
respect to any qualified facility or energy storage tech-
nology the construction of which begins after December
31, 2026, 55 percent.’’.
(e) ELIMINATION OF ENERGY CREDIT FOR CERTAIN ENERGY PROP-
ERTY.—Section 48(a)(2) is amended—
(1) in subparagraph (A)(ii), by striking ‘‘2 percent’’ and
inserting ‘‘0 percent’’, and
(2) by adding at the end the following new subparagraph:
‘‘(C) NONAPPLICATION OF INCREASES TO ENERGY
PERCENTAGE.—For purposes of energy property described
in subparagraph (A)(ii), the energy percentage applicable
to such property pursuant to such subparagraph shall not
be increased or otherwise adjusted by any provision of
this section.’’.
(f) APPLICATION OF CLEAN ELECTRICITY INVESTMENT CREDIT
TO QUALIFIED FUEL CELL PROPERTY.—Section 48E, as amended
by subsection (c), is amended—
(1) by redesignating subsection (j) as subsection (k), and
(2) by inserting after subsection (i) the following new sub-
section:
‘‘(j) APPLICATION TO QUALIFIED FUEL CELL PROPERTY.—For pur-
poses of this section, in the case of any qualified fuel cell property
(as defined in section 48(c)(1), as applied without regard to subpara-
graph (E) thereof)—
‘‘(1) subsection (b)(3)(A) shall be applied without regard
to clause (iii) thereof,
‘‘(2) for purposes of subsection (a)(1), the applicable percent-
age shall be 30 percent and such percentage shall not be
increased or otherwise adjusted by any other provision of this
section, and
‘‘(3) subsection (g) shall not apply.’’.
(g) EFFECTIVE DATES.— Applicability.
(1) IN GENERAL.—Except as provided in paragraphs (2), 26 USC 48 note.
(3), (4), and (5), the amendments made by this section shall
apply to taxable years beginning after the date of enactment
of this Act.
(2) DOMESTIC CONTENT RULES.—The amendment made by
subsection (d) shall apply on or after June 16, 2025.
(3) ELIMINATION OF ENERGY CREDIT FOR CERTAIN ENERGY
PROPERTY.—The amendments made by subsection (e) shall
apply to property the construction of which begins on or after
June 16, 2025.
(4) APPLICATION OF CLEAN ELECTRICITY INVESTMENT CREDIT
TO QUALIFIED FUEL CELL PROPERTY.—The amendments made
by subsection (f) shall apply to property the construction of
which begins after December 31, 2025.
(5) TERMINATION FOR WIND AND SOLAR FACILITIES.—The Time period.
amendments made by subsection (a) shall apply to facilities
the construction of which begins after the date which is 12
months after the date of enactment of this Act.
SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFAC-
TURING PRODUCTION CREDIT.
(a) MODIFICATION OF PROVISION RELATING TO SALE OF
INTEGRATED COMPONENTS.—Paragraph (4) of section 45X(d) is
amended to read as follows:
139 STAT. 274 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(4) SALE OF INTEGRATED COMPONENTS.—
‘‘(A) IN GENERAL.—For purposes of this section, a per-
son shall be treated as having sold an eligible component
to an unrelated person if—
‘‘(i) such component (referred to in this paragraph
as the ‘primary component’) is integrated, incorporated,
or assembled into another eligible component (referred
to in this paragraph as the ‘secondary component’)
produced within the same manufacturing facility as
the primary component, and
‘‘(ii) the secondary component is sold to an unre-
lated person.
Applicability. ‘‘(B) ADDITIONAL REQUIREMENTS.—Subparagraph (A)
shall only apply with respect to a secondary component
for which not less than 65 percent of the total direct mate-
rial costs which are paid or incurred (within the meaning
of section 461 and any regulations issued under section
263A) by the taxpayer to produce such secondary compo-
nent are attributable to primary components which are
mined, produced, or manufactured in the United States.’’.
(b) PHASE OUT AND TERMINATION.—Section 45X(b)(3) is
amended—
(1) in the heading, by inserting ‘‘AND TERMINATION’’ after
‘‘PHASE OUT’’,
(2) in subparagraph (A), in the matter preceding clause
(i), by striking ‘‘subparagraph (C)’’ and inserting ‘‘subpara-
graphs (C) and (D)’’, and
Effective dates. (3) by striking subparagraph (C) and inserting the fol-
lowing:
‘‘(C) PHASE OUT FOR APPLICABLE CRITICAL MINERALS
OTHER THAN METALLURGICAL COAL.—
‘‘(i) IN GENERAL.—In the case of any applicable
critical mineral (other than metallurgical coal) pro-
duced after December 31, 2030, the amount determined
under this subsection with respect to such mineral
shall be equal to the product of—
‘‘(I) the amount determined under paragraph
(1) with respect to such mineral, as determined
without regard to this subparagraph, multiplied
by
‘‘(II) the phase out percentage under clause
(ii).
Time periods. ‘‘(ii) PHASE OUT PERCENTAGE FOR APPLICABLE CRIT-
ICAL MINERALS OTHER THAN METALLURGICAL COAL.—
The phase out percentage under this clause is equal
to—
‘‘(I) in the case of any applicable critical min-
eral produced during calendar year 2031, 75 per-
cent,
‘‘(II) in the case of any applicable critical min-
eral produced during calendar year 2032, 50 per-
cent,
‘‘(III) in the case of any applicable critical min-
eral produced during calendar year 2033, 25 per-
cent, and
‘‘(IV) in the case of any applicable critical min-
eral produced after December 31, 2033, 0 percent.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 275
‘‘(D) TERMINATION FOR WIND ENERGY COMPONENTS.—
This section shall not apply to any wind energy component
produced and sold after December 31, 2027.
‘‘(E) TERMINATION FOR METALLURGICAL COAL.—This
section shall not apply to any metallurgical coal produced
after December 31, 2029.’’.
(c) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—Section 45X is amended—
(1) in subsection (c)(1), by adding at the end the following
new subparagraph:
‘‘(C) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN
ENTITIES.—In the case of taxable years beginning after
the date of enactment of this subparagraph, the term
‘eligible component’ shall not include any property which
includes any material assistance from a prohibited foreign
entity (as defined in section 7701(a)(52), as applied by
substituting ‘used in a product sold before January 1, 2027’
for ‘used in a product sold before January 1, 2030’ in
subparagraph (D)(iv)(II)(bb) thereof).’’, and
(2) in subsection (d), as amended by subsection (a) of this
section, by adding at the end the following new paragraph:
‘‘(4) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
‘‘(A) IN GENERAL.—No credit shall be determined under
subsection (a) for any taxable year if the taxpayer is—
‘‘(i) a specified foreign entity (as defined in section
7701(a)(51)(B)), or
‘‘(ii) a foreign-influenced entity (as defined in sec-
tion 7701(a)(51)(D), without regard to clause (i)(II)
thereof).
‘‘(B) EFFECTIVE CONTROL.—In the case of a taxpayer Determination.
for which section 7701(a)(51)(D)(i)(II) is determined to Applicability.
apply for any taxable year, no credit shall be determined
under subsection (a) for such taxable year if such deter-
mination relates to an eligible component described in sub-
section (c)(1).’’.
(d) MODIFICATION OF DEFINITION OF BATTERY MODULE.—Sec-
tion 45X(c)(5)(B)(iii) is amended—
(1) in subclause (I)(bb), by striking ‘‘and’’ at the end,
(2) in subclause (II), by striking the period at the end
and inserting ‘‘, and’’, and
(3) by adding at the end the following new subclause:
‘‘(III) which is comprised of all other essential
equipment needed for battery functionality, such
as current collector assemblies and voltage sense
harnesses, or any other essential energy collection
equipment.’’.
(e) INCLUSION OF METALLURGICAL COAL AS AN APPLICABLE CRIT-
ICAL MINERAL FOR PURPOSES OF THE ADVANCED MANUFACTURING
PRODUCTION CREDIT.—
(1) IN GENERAL.—Section 45X(c)(6) is amended—
(A) by redesignating subparagraphs (R) through (Z)
as subparagraphs (S) through (AA), respectively, and
(B) by inserting after subparagraph (Q) the following
new subparagraph:
‘‘(R) METALLURGICAL COAL.—Metallurgical coal which
is suitable for use in the production of steel (within the
139 STAT. 276 PUBLIC LAW 119–21—JULY 4, 2025
meaning of the notice published by the Department of
Energy entitled ‘Critical Material List; Addition of Met-
allurgical Coal Used for Steelmaking’ (90 Fed. Reg. 22711
(May 29, 2025))), regardless of whether such production
occurs inside or outside of the United States.’’.
(2) CREDIT AMOUNT.—Section 45X(b)(1)(M) is amended by
inserting ‘‘(2.5 percent in the case of metallurgical coal)’’ after
‘‘10 percent’’.
Applicability. (f) EFFECTIVE DATES.—
26 USC 45X note. (1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) MODIFICATION OF PROVISION RELATING TO SALE OF
INTEGRATED COMPONENTS.—The amendment made by sub-
section (a) shall apply to components sold during taxable years
beginning after December 31, 2026.
SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY
PROJECT CREDIT PROGRAM.
(a) IN GENERAL.—Section 48C(e)(3)(C) is amended by striking
‘‘shall be increased’’ and inserting ‘‘shall not be increased’’.
26 USC 48C note. (b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of enactment of this Act.
Subchapter B—Enhancement of America-first Energy Policy
SEC. 70521. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUC-
TION CREDIT.
(a) PROHIBITION ON FOREIGN FEEDSTOCKS.—
(1) IN GENERAL.—Section 45Z(f)(1)(A) is amended—
(A) in clause (i)(II)(bb), by striking ‘‘and’’ at the end,
(B) in clause (ii), by striking the period at the end
and inserting ‘‘, and’’, and
(C) by adding at the end the following new clause:
‘‘(iii) such fuel is exclusively derived from a feed-
stock which was produced or grown in the United
States, Mexico, or Canada.’’.
26 USC 45Z note. (2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to transportation fuel produced after
December 31, 2025.
(b) PROHIBITION ON NEGATIVE EMISSION RATES.—
(1) IN GENERAL.—Section 45Z(b)(1) is amended—
(A) by striking subparagraph (C) and inserting the
following:
‘‘(C) ROUNDING OF EMISSIONS RATE.—The Secretary
may round the emissions rates under subparagraph (B)
to the nearest multiple of 5 kilograms of CO2e per
mmBTU.’’, and
(B) by adding at the end the following new subpara-
graph:
‘‘(E) PROHIBITION ON NEGATIVE EMISSION RATES.—For
purposes of this section, the emissions rate for a transpor-
tation fuel may not be less than zero.’’.
26 USC 45Z note. (2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to emissions rates published for transpor-
tation fuel produced after December 31, 2025.
(c) DETERMINATION OF EMISSIONS RATE.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 277
(1) IN GENERAL.—Section 45Z(b)(1)(B) is amended by adding
at the end the following new clauses:
‘‘(iv) EXCLUSION OF INDIRECT LAND USE CHANGES.—
Notwithstanding clauses (i), (ii), and (iii), the emissions Determination.
rate shall be adjusted as necessary to exclude any
emissions attributed to indirect land use change. Any
such adjustment shall be based on regulations or meth-
odologies determined by the Secretary.
‘‘(v) ANIMAL MANURES.—With respect to any
transportation fuel which is derived from animal
manure, the Secretary—
‘‘(I) shall provide a distinct emissions rate with
respect to such fuel based on the specific animal
manure feedstock, which may include dairy
manure, swine manure, poultry manure, or any
other sources as are determined appropriate by
the Secretary, and
‘‘(II) notwithstanding subparagraph (E), may
provide an emissions rate that is less than zero.’’.
(2) CONFORMING AMENDMENT.—Section 45Z(b)(1)(B)(i) is
amended by striking ‘‘clauses (ii) and (iii)’’ and inserting
‘‘clauses (ii), (iii), (iv), and (v)’’.
(3) EFFECTIVE DATE.—The amendments made by this sub- 26 USC 45Z note.
section shall apply to emissions rates published for transpor-
tation fuel produced after December 31, 2025.
(d) EXTENSION OF CLEAN FUEL PRODUCTION CREDIT.—Section
45Z(g) is amended by striking ‘‘December 31, 2027’’ and inserting
‘‘December 31, 2029’’.
(e) PREVENTING DOUBLE CREDIT.—Section 45Z(d)(5) is
amended—
(1) in subparagraph (A)—
(A) in clause (ii), by striking ‘‘and’’ at the end,
(B) in clause (iii), by striking the period at the end
and inserting ‘‘, and’’, and
(C) by adding at the end the following new clause:
‘‘(iv) is not produced from a fuel for which a credit
under this section is allowable.’’, and
(2) by adding at the end the following new subparagraph:
‘‘(C) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary
determines necessary to carry out the purposes of subpara-
graph (A)(iv).’’.
(f) SALES TO UNRELATED PERSONS.—Section 45Z(f)(3) is
amended by adding at the end the following: ‘‘The Secretary may
prescribe additional related person rules similar to the rule
described in the preceding sentence for entities which are not
described in such sentence, including rules for related persons with
respect to which the taxpayer has reason to believe will sell fuel
to an unrelated person in a manner described in subsection (a)(4).’’.
(g) TREATMENT OF SUSTAINABLE AVIATION FUEL.—
(1) COORDINATION OF CREDITS.—
(A) IN GENERAL.—Section 6426(k) is amended by
adding at the end the following new paragraph:
‘‘(4) COORDINATION OF CREDITS.—With respect to any gallon
of sustainable aviation fuel in a qualified mixture, this sub-
section shall not apply to any such gallon for which a credit
139 STAT. 278 PUBLIC LAW 119–21—JULY 4, 2025
under section 45Z is allowable (as determined without regard
to subsection (a)(1)(A) of such section).’’.
Applicability. (B) EFFECTIVE DATE.—The amendment made by this
26 USC 6426 paragraph shall apply to—
note. (i) fuel sold or used on or after the date of the
enactment of this Act, and
(ii) fuel sold or used before the date of enactment
of this Act, but only to the extent that claims for
the credit under section 6426(k) of the Internal Rev-
enue Code of 1986 with respect to such sale or use
have not been paid or allowed as of such date.
(2) ELIMINATION OF SPECIAL RATE.—
(A) IN GENERAL.—Paragraph (3) of section 45Z(a) is
amended to read as follows:
‘‘(3) DEFINITION OF SUSTAINABLE AVIATION FUEL.—For pur-
poses of this section, the term ‘sustainable aviation fuel’ means
liquid fuel, the portion of which is not kerosene, which is
sold for use in an aircraft and which—
‘‘(A) meets the requirements of—
‘‘(i) ASTM International Standard D7566, or
‘‘(ii) the Fischer Tropsch provisions of ASTM Inter-
national Standard D1655, Annex A1, and
‘‘(B) is not derived from palm fatty acid distillates
or petroleum.’’.
(B) CONFORMING AMENDMENT.—Section 45Z(c)(1) is
amended by striking ‘‘, the $1.00 amount in subsection
(a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and
the $1.75 amount in subsection (a)(3)(A)(ii)’’ and inserting
‘‘and the $1.00 amount in subsection (a)(2)(B)’’.
26 USC 45Z note. (C) EFFECTIVE DATE.—The amendments made by this
paragraph shall apply to fuel produced after December
31, 2025.
(h) SUSTAINABLE AVIATION FUEL CREDIT.—Section 6426(k), as
amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
‘‘(5) TERMINATION.—This subsection shall not apply to any
sale or use for any period after September 30, 2025.’’.
(i) REGISTRATION OF PRODUCERS OF FUEL ELIGIBLE FOR CLEAN
FUEL PRODUCTION CREDIT.—
(1) IN GENERAL.—Section 13704(b)(5) of Public Law 117-
26 USC 4101. 169 is amended by striking ‘‘after ‘section 6426(k)(3)),’ ’’ and
inserting ‘‘after ‘section 40B),’ ’’.
26 USC 4101 (2) EFFECTIVE DATE.—The amendment made by this sub-
note. section shall apply to transportation fuel produced after
December 31, 2024.
(j) EXTENSION AND MODIFICATION OF SMALL AGRI-BIODIESEL
PRODUCER CREDIT.—
(1) IN GENERAL.—Section 40A is amended—
(A) in subsection (b)(4)—
(i) in subparagraph (A), by striking ‘‘10 cents’’ and
inserting ‘‘20 cents’’,
(ii) in subparagraph (B), by inserting ‘‘in a manner
which complies with the requirements under section
45Z(f)(1)(A)(iii)’’ after ‘‘produced by an eligible small
agri-biodiesel producer’’, and
(iii) by adding at the end the following new
subparagraph:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 279
‘‘(D) COORDINATION WITH CLEAN FUEL PRODUCTION
CREDIT.—The credit determined under this paragraph with
respect to any gallon of fuel shall be in addition to any
credit determined under section 45Z with respect to such
gallon of fuel.’’, and
(B) in subsection (g), by inserting ‘‘(or, in the case
of the small agri-biodiesel producer credit, any sale or
use after December 31, 2026)’’ after ‘‘December 31, 2024’’.
(2) TRANSFER OF CREDIT.—Section 6418(f)(1)(A) is amended
by adding at the end the following new clause:
‘‘(xii) So much of the biodiesel fuels credit deter-
mined under section 40A which consists of the small
agri-biodiesel producer credit determined under sub-
section (b)(4) of such section.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub- 26 USC 40A note.
section shall apply to fuel sold or used after June 30, 2025.
(k) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
(1) IN GENERAL.—Section 45Z(f) is amended by adding at
the end the following new paragraph:
‘‘(8) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—
‘‘(A) IN GENERAL.—No credit shall be determined under
subsection (a) for any taxable year beginning after the
date of enactment of this paragraph if the taxpayer is
a specified foreign entity (as defined in section
7701(a)(51)(B)).
‘‘(B) OTHER PROHIBITED FOREIGN ENTITIES.—No credit Effective date.
shall be determined under subsection (a) for any taxable Time period.
year beginning after the date which is 2 years after the
date of enactment of this paragraph if the taxpayer is
a foreign-influenced entity (as defined in section
7701(a)(51)(D), without regard to clause (i)(II) thereof).’’.
(2) EFFECTIVE DATE.—The amendment made by this sub- 26 USC 45Z note.
section shall apply to taxable years beginning after the date
of enactment of this Act.
SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION
CREDIT.
(a) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—Section 45Q(f) is amended by adding at the end the following
new paragraph:
‘‘(10) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
TIES.—No credit shall be determined under subsection (a) for
any taxable year beginning after the date of enactment of
this paragraph if the taxpayer is—
‘‘(A) a specified foreign entity (as defined in section
7701(a)(51)(B)), or
‘‘(B) a foreign-influenced entity (as defined in section
7701(a)(51)(D), determined without regard to clause (i)(II)
thereof).’’.
(b) PARITY FOR DIFFERENT USES AND UTILIZATIONS OF QUALI-
FIED CARBON OXIDE.—Section 45Q is amended—
(1) in subsection (a)—
(A) in paragraph (2)(B)(ii), by adding ‘‘and’’ at the
end,
139 STAT. 280 PUBLIC LAW 119–21—JULY 4, 2025
(B) in paragraph (3), by striking subparagraph (B)
and inserting the following:
‘‘(B)(i) disposed of by the taxpayer in secure geological
storage and not used by the taxpayer as described in clause
(ii) or (iii),
‘‘(ii) used by the taxpayer as a tertiary injectant in
a qualified enhanced oil or natural gas recovery project
and disposed of by the taxpayer in secure geological storage,
or
‘‘(iii) utilized by the taxpayer in a manner described
in subsection (f)(5).’’, and
(C) by striking paragraph (4),
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking subparagraph (A) and inserting the
following:
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B) or (C), the applicable dollar amount shall be an amount
equal to—
Time period. ‘‘(i) for any taxable year beginning in a calendar
year after 2024 and before 2027, $17, and
‘‘(ii) for any taxable year beginning in a calendar
year after 2026, an amount equal to the product of
$17 and the inflation adjustment factor for such cal-
endar year determined under section 43(b)(3)(B) for
such calendar year, determined by substituting ‘2025’
for ‘1990’.’’, and
(ii) in subparagraph (B), by striking ‘‘shall be
applied’’ and all that follows through the period and
inserting ‘‘shall be applied by substituting ‘$36’ for
‘$17’ each place it appears.’’,
(B) in paragraph (2)(B), by striking ‘‘paragraphs (3)(A)
and (4)(A)’’ and inserting ‘‘paragraph (3)(A)’’, and
(C) in paragraph (3), by striking ‘‘the dollar amounts
applicable under paragraph (3) or (4)’’ and inserting ‘‘the
dollar amount applicable under paragraph (3)’’,
(3) in subsection (f)—
(A) in paragraph (5)(B)(i), by striking ‘‘(4)(B)(ii)’’ and
inserting ‘‘(3)(B)(iii)’’, and
(B) in paragraph (9), by striking ‘‘paragraphs (3) and
(4) of subsection (a)’’ and inserting ‘‘subsection (a)(3)’’, and
(4) in subsection (h)(3)(A)(ii), by striking ‘‘paragraph (3)(A)
or (4)(A) of subsection (a)’’ and inserting ‘‘subsection (a)(3)(A)’’.
(c) CONFORMING AMENDMENT.—Section 6417(d)(3)(C)(i)(II)(bb)
is amended by striking ‘‘paragraph (3)(A) or (4)(A) of section 45Q(a)’’
and inserting ‘‘section 45Q(a)(3)(A)’’.
Applicability. (d) EFFECTIVE DATES.—
26 USC 45Q (1) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI-
note. TIES.—The amendment made by subsection (a) shall apply to
taxable years beginning after the date of enactment of this
Act.
(2) PARITY FOR DIFFERENT USES AND UTILIZATIONS OF QUALI-
FIED CARBON OXIDE.—The amendments made subsections (b)
and (c) shall apply to facilities or equipment placed in service
after the date of enactment of this Act.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 281
SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN
INTO ACCOUNT FOR PURPOSES OF COMPUTING
ADJUSTED FINANCIAL STATEMENT INCOME.
(a) IN GENERAL.—Section 56A(c)(13) is amended—
(1) by striking subparagraph (A) and inserting the fol-
lowing:
‘‘(A) reduced by—
‘‘(i) depreciation deductions allowed under section
167 with respect to property to which section 168
applies to the extent of the amount allowed as deduc-
tions in computing taxable income for the year, and
‘‘(ii) any deduction allowed for expenses under sec-
tion 263(c) (including any deduction for such expenses
under section 59(e) or 291(b)(2)) with respect to prop-
erty described therein to the extent of the amount
allowed as deductions in computing taxable income
for the year, and’’, and
(2) by striking subparagraph (B)(i) and inserting the fol-
lowing:
‘‘(i) to disregard any amount of—
‘‘(I) depreciation expense that is taken into
account on the taxpayer’s applicable financial
statement with respect to such property, and
‘‘(II) depletion expense that is taken into
account on the taxpayer’s applicable financial
statement with respect to the intangible drilling
and development costs of such property, and’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 56A note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE,
ADVANCED NUCLEAR, HYDROPOWER, AND GEO-
THERMAL ENERGY ADDED TO QUALIFYING INCOME OF
CERTAIN PUBLICLY TRADED PARTNERSHIPS.
(a) IN GENERAL.—Section 7704(d)(1)(E) is amended—
(1) by striking ‘‘income and gains derived from the explo-
ration’’ and inserting the following: ‘‘income and gains derived
from—
‘‘(i) the exploration’’.
(2) by inserting ‘‘or’’ before ‘‘industrial source’’, and
(3) by striking ‘‘or the transportation or storage’’ and all
that follows and inserting the following:
‘‘(ii) the transportation or storage of—
‘‘(I) any fuel described in subsection (b), (c),
(d), (e), or (k) of section 6426, or any alcohol fuel
defined in section 6426(b)(4)(A) or any biodiesel
fuel as defined in section 40A(d)(1) or sustainable
aviation fuel as defined in section 40B(d)(1), or
‘‘(II) liquified hydrogen or compressed
hydrogen,
‘‘(iii) in the case of a qualified facility (as defined
in section 45Q(d), without regard to any date by which
construction of the facility or equipment is required
to begin) not less than 50 percent of the total carbon
oxide production of which is qualified carbon oxide
(as defined in section 45Q(c))—
139 STAT. 282 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(I) the generation, availability for such
generation, or storage of electric power at such
facility, or
‘‘(II) the capture of carbon dioxide by such
facility,
‘‘(iv) the production of electricity from any
advanced nuclear facility (as defined in section
45J(d)(2)),
‘‘(v) the production of electricity or thermal energy
exclusively using a qualified energy resource described
in subparagraph (D) or (H) of section 45(c)(1), or
‘‘(vi) the operation of energy property described
in clause (iii) or (vii) of section 48(a)(3)(A) (determined
without regard to any requirement under such section
with respect to the date on which construction of prop-
erty begins).’’.
26 USC 7704 (b) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to taxable years beginning after December 31, 2025.
SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO
DYE FUEL.
(a) IN GENERAL.—Subchapter B of chapter 65, as amended
by the preceding provisions of this Act, is amended by adding
at the end the following new section:
26 USC 6435. ‘‘SEC. 6435. DYED FUEL.
‘‘(a) IN GENERAL.—If a person establishes to the satisfaction
of the Secretary that such person meets the requirements of sub-
section (b) with respect to diesel fuel or kerosene, then the Secretary
shall pay to such person an amount (without interest) equal to
the tax described in subsection (b)(2)(A) with respect to such diesel
fuel or kerosene.
‘‘(b) REQUIREMENTS.—
‘‘(1) IN GENERAL.—A person meets the requirements of
this subsection with respect to diesel fuel or kerosene if such
person removes from a terminal eligible indelibly dyed diesel
fuel or kerosene.
‘‘(2) ELIGIBLE INDELIBLY DYED DIESEL FUEL OR KEROSENE
DEFINED.—The term ‘eligible indelibly dyed diesel fuel or ker-
osene’ means diesel fuel or kerosene—
‘‘(A) with respect to which a tax under section 4081
was previously paid (and not credited or refunded), and
‘‘(B) which is exempt from taxation under section
4082(a).
‘‘(c) CROSS REFERENCE.—For civil penalty for excessive claims
under this section, see section 6675.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 6206 is amended—
(A) by striking ‘‘or 6427’’ each place it appears and
inserting ‘‘6427, or 6435’’, and
(B) by striking ‘‘6420 and 6421’’ and inserting ‘‘6420,
6421, and 6435’’.
(2) Section 6430 is amended—
(A) by striking ‘‘or’’ at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting
‘‘, or’’, and by adding at the end the following new para-
graph:
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 283
‘‘(4) which are removed as eligible indelibly dyed diesel
fuel or kerosene under section 6435.’’.
(3) Section 6675 is amended—
(A) in subsection (a), by striking ‘‘or 6427 (relating
to fuels not used for taxable purposes)’’ and inserting ‘‘6427
(relating to fuels not used for taxable purposes), or 6435
(relating to eligible indelibly dyed fuel)’’, and
(B) in subsection (b)(1), by striking ‘‘6421, or 6427,’’
and inserting ‘‘6421, 6427, or 6435,’’.
(4) The table of sections for subchapter B of chapter 65,
as amended by the preceding provisions of this Act, is amended 26 USC
by adding at the end the following new item: prec. 6411.
‘‘Sec. 6435. Dyed fuel.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 6206
shall apply to eligible indelibly dyed diesel fuel or kerosene removed note.
on or after the date that is 180 days after the date of the enactment
of this section.
Subchapter C—Other Reforms
SEC. 70531. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR
COMMERCIAL SHIPMENTS.
(a) CIVIL PENALTY.—
(1) ADDITIONAL PENALTY IMPOSED.—Section 321 of the
Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding
at the end the following new subsection:
‘‘(c) Any person who enters, introduces, facilitates, or attempts
to introduce an article into the United States using the privilege
of this section, the importation of which violates any other provision
of United States customs law, shall be assessed, in addition to
any other penalty permitted by law, a civil penalty of up to $5,000
for the first violation and up to $10,000 for each subsequent viola-
tion.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph Time period.
(1) shall take effect 30 days after the date of the enactment 19 USC 1321
of this Act. note.
(b) REPEAL OF COMMERCIAL SHIPMENT EXCEPTION.—
(1) REPEAL.—Section 321(a)(2) of such Act (19 U.S.C.
1321(a)(2)) is amended by striking ‘‘of this Act, or’’ and all
that follows through ‘‘subdivision (2); and’’ and inserting ‘‘of
this Act; and’’.
(2) CONFORMING REPEAL.—Subsection (c) of such section
321, as added by subsection (a) of this section, is repealed.
(3) EFFECTIVE DATE.—The amendments made by this sub- 19 USC 1321
section shall take effect on July 1, 2027. note.
CHAPTER 6—ENHANCING DEDUCTION AND INCOME TAX
CREDIT GUARDRAILS, AND OTHER REFORMS
SEC. 70601. MODIFICATION AND EXTENSION OF LIMITATION ON
EXCESS BUSINESS LOSSES OF NONCORPORATE TAX-
PAYERS.
(a) RULE MADE PERMANENT.—Section 461(l)(1) is amended by
striking ‘‘and before January 1, 2029,’’ each place it appears.
(b) ADJUSTMENT OF AMOUNTS FOR CALCULATION OF EXCESS
BUSINESS LOSS.—Section 461(l)(3)(C) is amended—
139 STAT. 284 PUBLIC LAW 119–21—JULY 4, 2025
(1) in the matter preceding clause (i), by striking ‘‘December
31, 2018’’ and inserting ‘‘December 31, 2025’’, and
(2) in clause (ii), by striking ‘‘2017’’ and inserting ‘‘2024’’.
Applicability. (c) EFFECTIVE DATES.—
26 USC 461 note. (1) RULE MADE PERMANENT.—The amendments made by
subsection (a) shall apply to taxable years beginning after
December 31, 2026.
(2) ADJUSTMENT OF AMOUNTS FOR CALCULATION OF EXCESS
BUSINESS LOSS.—The amendments made by subsection (b) shall
apply to taxable years beginning after December 31, 2025.
SEC. 70602. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO
PARTNERS FOR PROPERTY OR SERVICES.
(a) IN GENERAL.—Section 707(a)(2) is amended by striking
‘‘Under regulations prescribed’’ and inserting ‘‘Except as provided’’.
26 USC 707 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to services performed, and property transferred, after
the date of the enactment of this Act.
26 USC 707 note. (c) RULE OF CONSTRUCTION.—Nothing in this section, or the
amendments made by this section, shall be construed to create
any inference with respect to the proper treatment under section
707(a) of the Internal Revenue Code of 1986 with respect to pay-
ments from a partnership to a partner for services performed,
or property transferred, on or before the date of the enactment
of this Act.
SEC. 70603. EXCESSIVE EMPLOYEE REMUNERATION FROM CON-
TROLLED GROUP MEMBERS AND ALLOCATION OF
DEDUCTION.
(a) APPLICATION OF AGGREGATION RULES.—Section 162(m) is
amended by adding at the end the following new paragraph:
Definitions. ‘‘(7) REMUNERATION FROM CONTROLLED GROUP MEMBERS.—
‘‘(A) IN GENERAL.—In the case of any publicly held
corporation which is a member of a controlled group—
‘‘(i) paragraph (1) shall be applied by substituting
‘specified covered employee’ for ‘covered employee’, and
‘‘(ii) if any person which is a member of such
controlled group (other than such publicly held corpora-
tion) provides applicable employee remuneration to an
individual who is a specified covered employee of such
controlled group and the aggregate amount described
in subparagraph (B)(ii) with respect to such specified
covered employee exceeds $1,000,000—
‘‘(I) paragraph (1) shall apply to such person
with respect to such remuneration, and
‘‘(II) paragraph (1) shall apply to such publicly
held corporation and to each such related person
by substituting ‘the allocable limitation amount’
for ‘$1,000,000’.
‘‘(B) ALLOCABLE LIMITATION AMOUNT.—For purposes of
this paragraph, the term ‘allocable limitation amount’
means, with respect to any member of the controlled group
referred to in subparagraph (A) with respect to any speci-
fied covered employee of such controlled group, the amount
which bears the same ratio to $1,000,000 as—
‘‘(i) the amount of applicable employee remunera-
tion provided by such member with respect to such
specified covered employee, bears to
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 285
‘‘(ii) the aggregate amount of applicable employee
remuneration provided by all such members with
respect to such specified covered employee.
‘‘(C) SPECIFIED COVERED EMPLOYEE.—For purposes of
this paragraph, the term ‘specified covered employee’
means, with respect to any controlled group—
‘‘(i) any employee described in subparagraph (A),
(B), or (D) of paragraph (3), with respect to the publicly
held corporation which is a member of such controlled
group, and
‘‘(ii) any employee who would be described in
subparagraph (C) of paragraph (3) if such subpara-
graph were applied by taking into account the
employees of all members of the controlled group.
‘‘(D) CONTROLLED GROUP.—For purposes of this para-
graph, the term ‘controlled group’ means any group treated
as a single employer under subsection (b), (c), (m), or (o)
of section 414.’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 162 note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70604. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS.
(a) IN GENERAL.—Chapter 36 is amended by inserting after
subchapter B the following new subchapter:
‘‘Subchapter C—Remittance Transfers 26 USC
prec. 4471.
‘‘Sec. 4475. Imposition of tax.
‘‘SEC. 4475. IMPOSITION OF TAX. 26 USC 4475.
‘‘(a) IN GENERAL.—There is hereby imposed on any remittance
transfer a tax equal to 1 percent of the amount of such transfer.
‘‘(b) PAYMENT OF TAX.—
‘‘(1) IN GENERAL.—The tax imposed by this section with
respect to any remittance transfer shall be paid by the sender
with respect to such transfer.
‘‘(2) COLLECTION OF TAX.—The remittance transfer provider
with respect to any remittance transfer shall collect the amount
of the tax imposed under subsection (a) with respect to such
transfer from the sender and remit such tax quarterly to the
Secretary at such time and in such manner as provided by
the Secretary,
‘‘(3) SECONDARY LIABILITY.—Where any tax imposed by sub-
section (a) is not paid at the time the transfer is made, then
to the extent that such tax is not collected, such tax shall
be paid by the remittance transfer provider.
‘‘(c) TAX LIMITED TO CASH AND SIMILAR INSTRUMENTS.—The
tax imposed under subsection (a) shall apply only to any remittance
transfer for which the sender provides cash, a money order, a
cashier’s check, or any other similar physical instrument (as deter-
mined by the Secretary) to the remittance transfer provider.
‘‘(d) NONAPPLICATION TO CERTAIN NONCASH REMITTANCE
TRANSFERS.—Subsection (a) shall not apply to any remittance
transfer for which the funds being transferred are—
‘‘(1) withdrawn from an account held in or by a financial
institution—
139 STAT. 286 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(A) which is described in subparagraphs (A) through
(H) of section 5312(a)(2) of title 31, United States Code,
and
‘‘(B) that is subject to the requirements under sub-
chapter II of chapter 53 of such title, or
‘‘(2) funded with a debit card or a credit card which is
issued in the United States.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) IN GENERAL.—The terms ‘remittance transfer’, ‘remit-
tance transfer provider’, and ‘sender’ shall each have the respec-
tive meanings given such terms by section 919(g) of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693o–1(g)).
‘‘(2) CREDIT CARD.—The term ‘credit card’ has the same
meaning given such term under section 920(c)(3) of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(3)).
‘‘(3) DEBIT CARD.—The term ‘debit card’ has the same
meaning given such term under section 920(c)(2) of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(2)), without
regard to subparagraph (B) of such section.
‘‘(f) APPLICATION OF ANTI-CONDUIT RULES.—For purposes of
section 7701(l), with respect to any multiple-party arrangements
involving the sender, a remittance transfer shall be treated as
a financing transaction.’’.
(b) CONFORMING AMENDMENT.—The table of subchapters for
26 USC chapter 36 is amended by inserting after the item relating to
prec. 4461. subchapter B the following new item:
‘‘SUBCHAPTER C—REMITTANCE TRANSFERS’’.
26 USC 4475. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to transfers made after December 31, 2025.
Definitions. SEC. 70605. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-
26 USC 3134 RELATED EMPLOYEE RETENTION CREDITS.
note.
(a) ASSESSABLE PENALTY FOR FAILURE TO COMPLY WITH DUE
DILIGENCE REQUIREMENTS.—
(1) IN GENERAL.—Any COVID–ERTC promoter which pro-
vides aid, assistance, or advice with respect to any COVID–
ERTC document and which fails to comply with due diligence
requirements imposed by the Secretary with respect to deter-
mining eligibility for, or the amount of, any credit or advance
payment of a credit under section 3134 of the Internal Revenue
Code of 1986, shall pay a penalty of $1,000 for each such
failure.
(2) DUE DILIGENCE REQUIREMENTS.—The due diligence
requirements referred to in paragraph (1) shall be similar to
the due diligence requirements imposed under section 6695(g)
of the Internal Revenue Code of 1986.
(3) RESTRICTION TO DOCUMENTS USED IN CONNECTION WITH
RETURNS OR CLAIMS FOR REFUND.—Paragraph (1) shall not
apply with respect to any COVID–ERTC document unless such
document constitutes, or relates to, a return or claim for refund.
(4) TREATMENT AS ASSESSABLE PENALTY, ETC.—For purposes
of the Internal Revenue Code of 1986, the penalty imposed
under paragraph (1) shall be treated as a penalty which is
imposed under section 6695(g) of such Code and assessed under
section 6201 of such Code.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 287
(5) SECRETARY.—For purposes of this subsection, the term Definition.
‘‘Secretary’’ means the Secretary of the Treasury or the Sec-
retary’s delegate.
(b) COVID–ERTC PROMOTER.—For purposes of this section—
(1) IN GENERAL.—The term ‘‘COVID–ERTC promoter’’ Definition.
means, with respect to any COVID–ERTC document, any per-
son which provides aid, assistance, or advice with respect to
such document if—
(A) such person charges or receives a fee for such
aid, assistance, or advice which is based on the amount
of the refund or credit with respect to such document
and, with respect to such person’s taxable year in which
such person provided such assistance or the preceding tax-
able year, the aggregate of the gross receipts of such person
for aid, assistance, and advice with respect to all COVID-
ERTC documents exceeds 20 percent of the gross receipts
of such person for such taxable year, or
(B) with respect to such person’s taxable year in which
such person provided such assistance or the preceding tax-
able year—
(i) the aggregate of the gross receipts of such per-
son for aid, assistance, and advice with respect to
all COVID–ERTC documents exceeds 50 percent of
the gross receipts of such person for such taxable year,
or
(ii) both—
(I) such aggregate gross receipts exceed 20
percent of the gross receipts of such person for
such taxable year, and
(II) the aggregate of the gross receipts of such
person for aid, assistance, and advice with respect
to all COVID–ERTC documents (determined after
application of paragraph (3)) exceeds $500,000.
(2) EXCEPTION FOR CERTIFIED PROFESSIONAL EMPLOYER
ORGANIZATIONS.—The term ‘‘COVID–ERTC promoter’’ shall not
include a certified professional employer organization (as
defined in section 7705 of the Internal Revenue Code of 1986).
(3) AGGREGATION RULE.—For purposes of paragraph (1),
all persons treated as a single employer under subsection (a)
or (b) of section 52 of the Internal Revenue Code of 1986,
or subsection (m) or (o) of section 414 of such Code, shall
be treated as 1 person.
(4) SHORT TAXABLE YEARS.—In the case of any taxable
year of less than 12 months, a person shall be treated as
a COVID-ERTC promoter if such person is described in para-
graph (1) either with respect to such taxable year or by treating
any reference to such taxable year as a reference to the calendar
year in which such taxable year begins.
(c) COVID–ERTC DOCUMENT.—For purposes of this section, Definition.
the term ‘‘COVID–ERTC document’’ means any return, affidavit,
claim, or other document related to any credit or advance payment
of a credit under section 3134 of the Internal Revenue Code of
1986, including any document related to eligibility for, or the cal-
culation or determination of any amount directly related to, any
such credit or advance payment.
(d) LIMITATION ON CREDITS AND REFUNDS.—Notwithstanding Deadline.
section 6511 of the Internal Revenue Code of 1986, no credit under
139 STAT. 288 PUBLIC LAW 119–21—JULY 4, 2025
section 3134 of the Internal Revenue Code of 1986 shall be allowed,
and no refund with respect to any such credit shall be made,
after the date of the enactment of this Act, unless a claim for
such credit or refund was filed by the taxpayer on or before January
31, 2024.
(e) EXTENSION OF LIMITATION ON ASSESSMENT.—Section 3134(l)
is amended to read as follows:
‘‘(l) EXTENSION OF LIMITATION ON ASSESSMENT.—
Time period. ‘‘(1) IN GENERAL.—Notwithstanding section 6501, the
limitation on the time period for the assessment of any amount
attributable to a credit claimed under this section shall not
expire before the date that is 6 years after the latest of—
‘‘(A) the date on which the original return which
includes the calendar quarter with respect to which such
credit is determined is filed,
‘‘(B) the date on which such return is treated as filed
under section 6501(b)(2), or
‘‘(C) the date on which the claim for credit or refund
with respect to such credit is made.
Definition. ‘‘(2) DEDUCTION FOR WAGES TAKEN INTO ACCOUNT IN DETER-
MINING IMPROPERLY CLAIMED CREDIT.—
‘‘(A) IN GENERAL.—Notwithstanding section 6511, in
the case of an assessment attributable to a credit claimed
under this section, the limitation on the time period for
credit or refund of any amount attributable to a deduction
for improperly claimed ERTC wages shall not expire before
the time period for such assessment expires under para-
graph (1).
‘‘(B) IMPROPERLY CLAIMED ERTC WAGES.—For purposes
of this paragraph, the term ‘improperly claimed ERTC
wages’ means, with respect to an assessment attributable
to a credit claimed under this section, the wages with
respect to which a deduction would not have been allowed
if the portion of the credit to which such assessment relates
had been properly claimed.’’.
(f) AMENDMENT TO PENALTY FOR ERRONEOUS CLAIM FOR
REFUND OR CREDIT.—Section 6676(a) is amended by striking
‘‘income tax’’ and inserting ‘‘income or employment tax’’.
Applicability. (g) EFFECTIVE DATES.—
(1) IN GENERAL.—The provisions of this section shall apply
to aid, assistance, and advice provided after the date of the
enactment of this Act.
(2) LIMITATION ON CREDITS AND REFUNDS.—Subsection (d)
shall apply to credits and refunds allowed or made after the
date of the enactment of this Act.
(3) EXTENSION OF LIMITATION ON ASSESSMENT.—The
amendment made by subsection (e) shall apply to assessments
made after the date of the enactment of this Act.
(4) AMENDMENT TO PENALTY FOR ERRONEOUS CLAIM FOR
REFUND OR CREDIT.—The amendment made by subsection (f)
shall apply to claims for credit or refund after the date of
the enactment of this Act.
Guidance. (h) REGULATIONS.—The Secretary (as defined in subsection
(a)(5)) shall issue such regulations or other guidance as may be
necessary or appropriate to carry out the purposes of this section
(and the amendments made by this section).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 289
SEC. 70606. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN
OPPORTUNITY AND LIFETIME LEARNING CREDITS.
(a) SOCIAL SECURITY NUMBER OF TAXPAYER REQUIRED.—Section
25A(g)(1) is amended to read as follows:
‘‘(1) IDENTIFICATION REQUIREMENT.—
‘‘(A) SOCIAL SECURITY NUMBER REQUIREMENT.—No
credit shall be allowed under subsection (a) to an individual
unless the individual includes on the return of tax for
the taxable year—
‘‘(i) such individual’s social security number, and
‘‘(ii) in the case of a credit with respect to the
qualified tuition and related expenses of an individual
other than the taxpayer or the taxpayer’s spouse, the
name and social security number of such individual.
‘‘(B) INSTITUTION.—No American Opportunity Tax
Credit shall be allowed under this section unless the tax-
payer includes the employer identification number of any
institution to which the taxpayer paid qualified tuition
and related expenses taken into account under this section
on the return of tax for the taxable year.
‘‘(C) SOCIAL SECURITY NUMBER DEFINED.—For purposes
of this paragraph, the term ‘social security number’ shall
have the meaning given such term in section 24(h)(7).’’.
(b) OMISSION TREATED AS MATHEMATICAL OR CLERICAL
ERROR.—Section 6213(g)(2)(J) is amended by striking ‘‘TIN’’ and
inserting ‘‘social security number or employer identification
number’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 25A note.
shall apply to taxable years beginning after December 31, 2025.
SEC. 70607. TASK FORCE ON THE REPLACEMENT OF DIRECT FILE. Appropriation
authorization.
Out of any money in the Treasury not otherwise appropriated, Expiration date.
there is hereby appropriated for the fiscal year ending September Reports.
30, 2026, $15,000,000, to remain available until September 30,
2026, for necessary expenses of the Department of the Treasury
to deliver to Congress, within 90 days following the date of the
enactment of this Act, a report on—
(1) the cost of enhancing and establishing public-private
partnerships which provide for free tax filing for up to 70
percent of all taxpayers calculated by adjusted gross income,
and to replace any direct e-file programs run by the Internal
Revenue Service;
(2) taxpayer opinions and preferences regarding a taxpayer-
funded, government-run service or a free service provided by
the private sector;
(3) assessment of the feasibility of a new approach, how
to make the options consistent and simple for taxpayers across
all participating providers, and how to provide features to
address taxpayer needs; and
(4) the cost (including options for differential coverage
based on taxpayer adjusted gross income and return complexity)
of developing and running a free direct e-file tax return system,
including costs to build and administer each release.
139 STAT. 290 PUBLIC LAW 119–21—JULY 4, 2025
Subtitle B—Health
CHAPTER 1—MEDICAID
Subchapter A—Reducing Fraud and Improving Enrollment
Processes
Time periods. SEC. 71101. MORATORIUM ON IMPLEMENTATION OF RULE RELATING
TO ELIGIBILITY AND ENROLLMENT IN MEDICARE
SAVINGS PROGRAMS.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall not, during the period beginning on the date of the enactment
of this section and ending September 30, 2034, implement, admin-
ister, or enforce the amendments made by the provisions of the
final rule published by the Centers for Medicare & Medicaid Serv-
ices on September 21, 2023, and titled ‘‘Streamlining Medicaid;
Medicare Savings Program Eligibility Determination and Enroll-
ment’’ (88 Fed. Reg. 65230) to the following sections of title 42,
Code of Federal Regulations:
(1) Section 406.21(c).
(2) Section 435.4.
(3) Section 435.601.
(4) Section 435.911.
(5) Section 435.952.
(b) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of this section and section 71102, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare
& Medicaid Services, $1,000,000 for fiscal year 2026, to remain
available until expended.
Time period. SEC. 71102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING
TO ELIGIBILITY AND ENROLLMENT FOR MEDICAID,
CHIP, AND THE BASIC HEALTH PROGRAM.
The Secretary of Health and Human Services shall not, during
the period beginning on the date of the enactment of this section
and ending September 30, 2034, implement, administer, or enforce
the amendments made by the provisions of the final rule published
by the Centers for Medicare & Medicaid Services on April 2, 2024,
and titled ‘‘Medicaid Program; Streamlining the Medicaid, Chil-
dren’s Health Insurance Program, and Basic Health Program
Application, Eligibility Determination, Enrollment, and Renewal
Processes’’ (89 Fed. Reg. 22780) to the following sections of title
42, Code of Federal Regulations:
(1) PART 431.—
(A) Section 431.213(d).
(2) PART 435.—
(A) Section 435.222.
(B) Section 435.407.
(C) Section 435.907.
(D) Section 435.911(c).
(E) Section 435.912.
(F) Section 435.916.
(G) Section 435.919.
(H) Section 435.1200(b)(3)(i)-(v).
(I) Section 435.1200(e )(1)(ii).
(J) Section 435.1200(h)(1).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 291
(3) PART 447.—Section 447.56(a)(1)(v).
(4) PART 457.—
(A) Section 457.344.
(B) Section 457.960.
(C) Section 457.1140(d)(4).
(D) Section 457.1170.
(E) Section 457.1180.
SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MED-
ICAID AND CHIP PROGRAMS.
(a) MEDICAID.—
(1) IN GENERAL.—Section 1902 of the Social Security Act
(42 U.S.C. 1396a) is amended—
(A) in subsection (a)—
(i) in paragraph (86), by striking ‘‘and’’ at the
end;
(ii) in paragraph (87), by striking the period and
inserting ‘‘; and’’; and
(iii) by inserting after paragraph (87) the following
new paragraph:
‘‘(88) provide— Effective dates.
‘‘(A) beginning not later than January 1, 2027, in the
case of 1 of the 50 States and the District of Columbia,
for a process to regularly obtain address information for
individuals enrolled under such plan (or a waiver of such
plan) in accordance with subsection (vv); and
‘‘(B) beginning not later than October 1, 2029—
‘‘(i) for the State to submit to the system estab-
lished by the Secretary under subsection (uu), with
respect to an individual enrolled or seeking to enroll
under such plan, not less frequently than once each
month and during each determination or redetermina-
tion of the eligibility of such individual for medical
assistance under such plan (or waiver of such plan)—
‘‘(I) the social security number of such indi-
vidual, if such individual has a social security
number and is required to provide such number
to enroll under such plan (or waiver); and
‘‘(II) such other information with respect to
such individual as determined necessary by the
Secretary for purposes of preventing individuals
from simultaneously being enrolled under State
plans (or waivers of such plans) of multiple States;
‘‘(ii) for the use of such system to prevent such
simultaneous enrollment; and
‘‘(iii) in the case that such system indicates that Determination.
an individual enrolled or seeking to enroll under such
plan (or waiver of such plan) is enrolled under a State
plan (or waiver of such a plan) of another State, for
the taking of appropriate action (as determined by
the Secretary) to identify whether such an individual
resides in the State and disenroll an individual from
the State plan of such State if such individual does
not reside in such State (unless such individual meets
such an exception as the Secretary may specify).’’; and
(B) by adding at the end the following new subsections:
139 STAT. 292 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(uu) PREVENTION OF ENROLLMENT UNDER MULTIPLE STATE
PLANS.—
Deadline. ‘‘(1) IN GENERAL.—Not later than October 1, 2029, the
Secretary shall establish a system to be utilized by the Sec-
retary and States to prevent an individual from being simulta-
neously enrolled under the State plans (or waivers of such
plans) of multiple States. Such system shall—
‘‘(A) provide for the receipt of information submitted
by a State under subsection (a)(88)(B)(i); and
Time period. ‘‘(B) not less than once each month, transmit informa-
tion to a State (or allow the Secretary to transmit informa-
tion to a State) regarding whether an individual enrolled
or seeking to enroll under the State plan of such State
(or waiver of such plan) is enrolled under the State plan
(or waiver of such plan) of another State.
‘‘(2) STANDARDS.—The Secretary shall establish such stand-
ards as determined necessary by the Secretary to limit and
protect information submitted under such system and ensure
the privacy of such information, consistent with subsection
(a)(7).
Time periods. ‘‘(3) IMPLEMENTATION FUNDING.—There are appropriated
to the Administrator of the Centers for Medicare & Medicaid
Services, out of amounts in the Treasury not otherwise appro-
priated, in addition to amounts otherwise available—
‘‘(A) for fiscal year 2026, $10,000,000 for purposes of
establishing the system and standards required under this
subsection, to remain available until expended; and
‘‘(B) for fiscal year 2029, $20,000,000 for purposes of
maintaining such system, to remain available until
expended.
‘‘(vv) PROCESS TO OBTAIN ENROLLEE ADDRESS INFORMATION.—
‘‘(1) IN GENERAL.—For purposes of subsection (a)(88)(A),
a process to regularly obtain address information for individuals
enrolled under a State plan (or a waiver of such plan) shall
obtain address information from reliable data sources described
in paragraph (2) and take such actions as the Secretary shall
specify with respect to any changes to such address based
on such information.
‘‘(2) RELIABLE DATA SOURCES DESCRIBED.—For purposes of
paragraph (1), the reliable data sources described in this para-
graph are the following:
‘‘(A) Mail returned to the State by the United States
Postal Service with a forwarding address.
‘‘(B) The National Change of Address Database main-
tained by the United States Postal Service.
‘‘(C) A managed care entity (as defined in section
1932(a)(1)(B)) or prepaid inpatient health plan or prepaid
ambulatory health plan (as such terms are defined in sec-
tion 1903(m)(9)(D)) that has a contract under the State
plan if the address information is provided to such entity
or plan directly from, or verified by such entity or plan
directly with, such individual.
‘‘(D) Other data sources as identified by the State
and approved by the Secretary.’’.
(2) CONFORMING AMENDMENTS.—
(A) PARIS.—Section 1903(r)(3) of the Social Security
Act (42 U.S.C. 1396b(r)(3)) is amended—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 293
(i) by striking ‘‘In order’’ and inserting ‘‘(A) In
order’’;
(ii) by striking ‘‘through the Public’’ and inserting
‘‘through—
‘‘(i) the Public’’;
(iii) by striking the period at the end and inserting
‘‘; and
‘‘(ii) beginning October 1, 2029, the system established
by the Secretary under section 1902(uu).’’; and
(iv) by adding at the end the following new
subparagraph:
‘‘(B) Beginning October 1, 2029, the Secretary may deter- Effective date.
mine that a State is not required to have in operation an Determination.
eligibility determination system which provides for data
matching (for purposes of address verification under section
1902(vv)) through the system described in subparagraph (A)(i)
to meet the requirements of this paragraph.’’.
(B) MANAGED CARE.—Section 1932 of the Social Secu-
rity Act (42 U.S.C. 1396u–2) is amended by adding at
the end the following new subsection:
‘‘(j) TRANSMISSION OF ADDRESS INFORMATION.—Beginning Effective date.
January 1, 2027, each contract under a State plan with a managed Contracts.
care entity (as defined in section 1932(a)(1)(B)) or with a prepaid
inpatient health plan or prepaid ambulatory health plan (as such
terms are defined in section 1903(m)(9)(D)), shall provide that such
entity or plan shall promptly transmit to the State any address
information for an individual enrolled with such entity or plan
that is provided to such entity or plan directly from, or verified
by such entity or plan directly with, such individual.’’.
(b) CHIP.—
(1) IN GENERAL.—Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)) is amended—
(A) by redesignating subparagraphs (H) through (U)
as subparagraphs (I) through (V), respectively; and
(B) by inserting after subparagraph (G) the following
new subparagraph:
‘‘(H) Section 1902(a)(88) (relating to address informa-
tion for enrollees and prevention of simultaneous enroll-
ments).’’.
(2) MANAGED CARE.—Section 2103(f)(3) of the Social Secu-
rity Act (42 U.S.C. 1397cc(f)(3)) is amended by striking ‘‘and
(e)’’ and inserting ‘‘(e), and (j)’’.
SEC. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN
ENROLLED.
Section 1902 of the Social Security Act (42 U.S.C. 1396a),
as amended by section 71103, is further amended—
(1) in subsection (a)—
(A) in paragraph (87), by striking ‘‘; and’’ and inserting
a semicolon;
(B) in paragraph (88), by striking the period at the
end and inserting ‘‘; and’’; and
(C) by inserting after paragraph (88) the following
new paragraph:
‘‘(89) provide that the State shall comply with the eligibility Compliance.
verification requirements under subsection (ww), except that Applicability.
139 STAT. 294 PUBLIC LAW 119–21—JULY 4, 2025
this paragraph shall apply only in the case of the 50 States
and the District of Columbia.’’; and
(2) by adding at the end the following new subsection:
‘‘(ww) VERIFICATION OF CERTAIN ELIGIBILITY CRITERIA.—
Effective date. ‘‘(1) IN GENERAL.—For purposes of subsection (a)(89), the
Determinations. eligibility verification requirements, beginning January 1, 2027,
are as follows:
‘‘(A) QUARTERLY SCREENING TO VERIFY ENROLLEE
Reviews. STATUS.—The State shall, not less frequently than quar-
terly, review the Death Master File (as such term is defined
in section 203(d) of the Bipartisan Budget Act of 2013)
or a successor system that provides such information
needed to determine whether any individuals enrolled for
medical assistance under the State plan (or waiver of such
plan) are deceased.
‘‘(B) DISENROLLMENT UNDER STATE PLAN.—If the State
determines, based on information obtained from the Death
Master File, that an individual enrolled for medical assist-
ance under the State plan (or waiver of such plan) is
deceased, the State shall—
‘‘(i) treat such information as factual information
confirming the death of a beneficiary;
‘‘(ii) disenroll such individual from the State plan
(or waiver of such plan) in accordance with subsection
(a)(3); and
‘‘(iii) discontinue any payments for medical assist-
ance under this title made on behalf of such individual
(other than payments for any items or services fur-
nished to such individual prior to the death of such
individual).
‘‘(C) REINSTATEMENT OF COVERAGE IN THE EVENT OF
ERROR.—If a State determines that an individual was
misidentified as deceased based on information obtained
from the Death Master File and was erroneously
disenrolled from medical assistance under the State plan
(or waiver of such plan) based on such misidentification,
the State shall immediately re-enroll such individual under
the State plan (or waiver of such plan), retroactive to
the date of such disenrollment.
‘‘(2) RULE OF CONSTRUCTION.—Nothing under this sub-
section shall be construed to preclude the ability of a State
to use other electronic data sources to timely identify potentially
deceased beneficiaries, so long as the State is also in compliance
with the requirements of this subsection (and all other require-
ments under this title relating to Medicaid eligibility determina-
tion and redetermination).’’.
SEC. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN
ENROLLED.
Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
1396a(kk)(1)) is amended—
(1) by striking ‘‘The State’’ and inserting:
‘‘(A) IN GENERAL.—The State’’; and
(2) by adding at the end the following new subparagraph:
‘‘(B) PROVIDER SCREENING AGAINST DEATH MASTER
Effective date. FILE.—Beginning January 1, 2028, as part of the enrollment
Time period. (or reenrollment or revalidation of enrollment) of a provider
Determination.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 295
or supplier under this title, and not less frequently than
quarterly during the period that such provider or supplier
is so enrolled, the State conducts a check of the Death
Master File (as such term is defined in section 203(d)
of the Bipartisan Budget Act of 2013) to determine whether
such provider or supplier is deceased.’’.
SEC. 71106. PAYMENT REDUCTION RELATED TO CERTAIN ERRONEOUS
EXCESS PAYMENTS UNDER MEDICAID.
(a) IN GENERAL.—Section 1903(u)(1) of the Social Security Act
(42 U.S.C. 1396b(u)(1)) is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘for audits conducted by the Secretary,
or, at the option of the Secretary, audits conducted by
the State’’ after ‘‘exceeds 0.03’’; and
(B) by inserting ‘‘, to the extent practicable’’ before
the period at the end;
(2) in subparagraph (B)—
(A) by striking ‘‘The Secretary’’ and inserting ‘‘(i) Sub-
ject to clause (ii), the Secretary’’; and
(B) by adding at the end the following new clause:
‘‘(ii) The amount waived under clause (i) for a fiscal year
may not exceed an amount equal to the erroneous excess pay-
ments for medical assistance described in subparagraph
(D)(i)(II) made for such fiscal year that exceed the allowable
error rate of 0.03.’’.
(3) in subparagraph (C), by striking ‘‘he’’ in each place
it appears and inserting ‘‘the Secretary’’ in each such place;
and
(4) in subparagraph (D)(i)—
(A) in subclause (I), by striking ‘‘and’’ at the end;
(B) in subclause (II), by striking the period at the
end and inserting ‘‘, or payments where insufficient
information is available to confirm eligibility, and’’; and
(C) by adding at the end the following new subclause:
‘‘(III) payments (other than payments described in sub-
clause (I)) for items and services furnished to an individual
who is not eligible for medical assistance under the State plan
(or a waiver of such plan) with respect to such items and
services, or payments where insufficient information is avail-
able to confirm eligibility.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection 42 USC 1396b
(a) shall apply beginning with respect to fiscal year 2030. note.
SEC. 71107. ELIGIBILITY REDETERMINATIONS.
(a) IN GENERAL.—Section 1902(e)(14) of the Social Security
Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end
the following new subparagraph:
‘‘(L) FREQUENCY OF ELIGIBILITY REDETERMINATIONS FOR
CERTAIN INDIVIDUALS.—
‘‘(i) IN GENERAL.—Subject to clause (ii), with Effective date.
respect to redeterminations of eligibility for medical Time periods.
assistance under a State plan (or waiver of such plan)
scheduled on or after the first day of the first quarter
that begins after December 31, 2026, a State shall
make such a redetermination once every 6 months
for the following individuals:
139 STAT. 296 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(I) Individuals enrolled under subsection
(a)(10)(A)(i)(VIII).
Determination. ‘‘(II) Individuals described in such subsection
Standards. who are otherwise enrolled under a waiver of such
Regulations. plan that provides coverage that is equivalent to
minimum essential coverage (as described in sec-
tion 5000A(f)(1)(A) of the Internal Revenue Code
of 1986 and determined in accordance with stand-
ards prescribed by the Secretary in regulations)
to all individuals described in subsection
(a)(10)(A)(i)(VIII).
‘‘(ii) EXEMPTION.—The requirements described in
clause (i) shall not apply to any individual described
in subsection (xx)(9)(A)(ii)(II).
‘‘(iii) STATE DEFINED.—For purposes of this
subparagraph, the term ‘State’ means 1 of the 50 States
or the District of Columbia.’’.
Deadline. (b) GUIDANCE.—Not later than 180 days after the date of enact-
42 USC 1396a ment of this section, the Secretary of Health and Human Services,
note. acting through the Administrator of the Centers for Medicare &
Medicaid Services, shall issue guidance relating to the implementa-
tion of the amendments made by this section.
Time period. (c) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $75,000,000 for fiscal year 2026,
to remain available until expended.
SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGI-
BILITY FOR LONG-TERM CARE SERVICES UNDER THE
MEDICAID PROGRAM.
(a) REVISING HOME EQUITY LIMIT.—Section 1917(f)(1) of the
Social Security Act (42 U.S.C. 1396p(f)(1)) is amended—
(1) in subparagraph (B)—
(A) by striking ‘‘A State’’ and inserting ‘‘(i) A State’’;
(B) in clause (i), as inserted by subparagraph (A)—
(i) by striking ‘‘ ‘$500,000’ ’’ and inserting ‘‘the
amount specified in subparagraph (A)’’; and
(ii) by inserting ‘‘, in the case of an individual’s
home that is located on a lot that is zoned for agricul-
tural use,’’ after ‘‘apply subparagraph (A)’’; and
(C) by adding at the end the following new clause:
Applicability. ‘‘(ii) A State may elect, without regard to the requirements
of section 1902(a)(1) (relating to statewideness) and section
1902(a)(10)(B) (relating to comparability), to apply subpara-
graph (A), in the case of an individual’s home that is not
described in clause (i), by substituting for the amount specified
in such subparagraph, an amount that exceeds such amount,
but does not exceed $1,000,000.’’; and
(2) in subparagraph (C)—
(A) by inserting ‘‘(other than the amount specified in
subparagraph (B)(ii) (relating to certain non-agricultural
homes))’’ after ‘‘specified in this paragraph’’; and
(B) by adding at the end the following new sentence:
‘‘In the case that application of the preceding sentence
would result in a dollar amount (other than the amount
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 297
specified in subparagraph (B)(i) (relating to certain agricul-
tural homes)) exceeding $1,000,000, such amount shall be
deemed to be equal to $1,000,000.’’.
(b) CLARIFICATION.—Section 1902 of the Social Security Act
(42 U.S.C. 1396a) is amended—
(1) in subsection (r)(2), by adding at the end the following
new subparagraph:
‘‘(C) This paragraph shall not be construed as permitting a
State to determine the eligibility of an individual for medical assist-
ance with respect to nursing facility services or other long-term
care services without application of the limit under section
1917(f)(1).’’; and
(2) in subsection (e)(14)(D)(iv)—
(A) by striking ‘‘Subparagraphs’’ and inserting
‘‘(I) IN GENERAL.—Subparagraphs’’; and
(B) by adding at the end the following new subclause:
‘‘(II) APPLICATION OF HOME EQUITY INTEREST
LIMIT.—Section 1917(f) shall apply for purposes
of determining the eligibility of an individual for
medical assistance with respect to nursing facility
services or other long-term care services.’’.
(c) EFFECTIVE DATE.—The amendments made by subsection 42 USC 1396p
(a) shall apply beginning on January 1, 2028. note.
SEC. 71109. ALIEN MEDICAID ELIGIBILITY.
(a) MEDICAID.—Section 1903(v) of the Social Security Act (42
U.S.C. 1396b(v)) is amended—
(1) in paragraph (1), by striking ‘‘and (4)’’and inserting
‘‘, (4), and (5)’’; and
(2) by adding at the end the following new paragraph:
‘‘(5) Notwithstanding the preceding paragraphs of this sub- Effective date.
section, beginning on October 1, 2026, except as provided in para-
graphs (2) and (4), in no event shall payment be made to a State
under this section for medical assistance furnished to an individual
unless such individual is—
‘‘(A) a resident of 1 of the 50 States, the District of
Columbia, or a territory of the United States; and
‘‘(B) either—
‘‘(i) a citizen or national of the United States;
‘‘(ii) an alien lawfully admitted for permanent residence
as an immigrant as defined by sections 101(a)(15) and
101(a)(20) of the Immigration and Nationality Act,
excluding, among others, alien visitors, tourists, diplomats,
and students who enter the United States temporarily with
no intention of abandoning their residence in a foreign
country;
‘‘(iii) an alien who has been granted the status of
Cuban and Haitian entrant, as defined in section 501(e)
of the Refugee Education Assistance Act of 1980 (Public
Law 96–422); or
‘‘(iv) an individual who lawfully resides in the United
States in accordance with a Compact of Free Association
referred to in section 402(b)(2)(G) of the Personal Responsi-
bility and Work Opportunity Reconciliation Act of 1996.’’.
(b) CHIP.—Section 2107(e)(1) of the Social Security Act, as
amended by section 71103(b), is further amended— 42 USC 1397gg.
139 STAT. 298 PUBLIC LAW 119–21—JULY 4, 2025
(1) by redesignating subparagraphs (R) through (V) as para-
graphs (S) through (W), respectively; and
(2) by inserting after paragraph (Q) the following:
‘‘(R) Section 1903(v)(5) (relating to payments for med-
ical assistance furnished to aliens), except in relation to
payments for services provided under section
2105(a)(1)(D)(ii).’’.
Time period. (c) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $15,000,000 for fiscal year 2026,
to remain available until expended.
SEC. 71110. EXPANSION FMAP FOR EMERGENCY MEDICAID.
(a) IN GENERAL.—Section 1905 of the Social Security Act (42
U.S.C. 1396d) is amended by adding at the end the following
new subsection:
‘‘(kk) FMAP FOR TREATMENT OF AN EMERGENCY MEDICAL
Effective date. CONDITION.—Notwithstanding subsection (y) and (z), beginning on
October 1, 2026, the Federal medical assistance percentage for
payments for care and services described in paragraph (2) of sub-
section 1903(v) furnished to an alien described in paragraph (1)
of such subsection shall not exceed the Federal medical assistance
percentage determined under subsection (b) for such State.’’.
Time period. (b) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $1,000,000 for fiscal year 2026,
to remain available until expended.
Subchapter B—Preventing Wasteful Spending
Time period. SEC. 71111. MORATORIUM ON IMPLEMENTATION OF RULE RELATING
TO STAFFING STANDARDS FOR LONG-TERM CARE
FACILITIES UNDER THE MEDICARE AND MEDICAID PRO-
GRAMS.
The Secretary of Health and Human Services shall not, during
the period beginning on the date of the enactment of this section
and ending September 30, 2034, implement, administer, or enforce
the amendments made by the provisions of the final rule published
by the Centers for Medicare & Medicaid Services on May 10, 2024,
and titled ‘‘Medicare and Medicaid Programs; Minimum Staffing
Standards for Long-Term Care Facilities and Medicaid Institutional
Payment Transparency Reporting’’ (89 Fed. Reg. 40876) to the
following sections of part 483 of title 42, Code of Federal Regula-
tions:
(1) Section 483.5.
(2) Section 483.35.
SEC. 71112. REDUCING STATE MEDICAID COSTS.
(a) IN GENERAL.—Section 1902(a)(34) of the Social Security
Act (42 U.S.C. 1396a(a)(34)) is amended to read as follows:
‘‘(34) provide that in the case of any individual who has
been determined to be eligible for medical assistance under
the plan and—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 299
‘‘(A) is enrolled under paragraph (10)(A)(i)(VIII), such
assistance will be made available to the individual for
care and services included under the plan and furnished
in or after the month before the month in which the indi-
vidual made application (or application was made on the
individual’s behalf in the case of a deceased individual)
for such assistance if such individual was (or upon applica-
tion would have been) eligible for such assistance at the
time such care and services were furnished; or
‘‘(B) is not described in subparagraph (A), such assist-
ance will be made available to the individual for care
and services included under the plan and furnished in
or after the second month before the month in which the
individual made application (or application was made on
the individual’s behalf in the case of a deceased individual)
for such assistance if such individual was (or upon applica-
tion would have been) eligible for such assistance at the
time such care and services were furnished;’’.
(b) DEFINITION OF MEDICAL ASSISTANCE.—Section 1905(a) of
the Social Security Act (42 U.S.C. 1396d(a)) is amended by striking
‘‘in or after the third month before the month in which the recipient
makes application for assistance’’ and inserting ‘‘, with respect
to an individual described in section 1902(a)(34)(A), in or after
the month before the month in which the recipient makes applica-
tion for assistance, and with respect to an individual described
in section 1902(a)(34)(B), in or after the second month before the
month in which the recipient makes application for assistance’’.
(c) CHIP.—Section 2102(b)(1)(B) of the Social Security Act (42
U.S.C. 1397bb(b)(1)(B)) is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
(2) in clause (v), by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following new clause:
‘‘(vi) shall, in the case that the State elects to
provide child health or pregnancy-related assistance
to an individual for any period prior to the month
in which the individual made application for such
assistance (or application was made on behalf of the
individual), provide that such assistance is not made
available to such individual for items and services
included under the State child health plan (or waiver
of such plan) that are furnished before the second
month preceding the month in which such individual
made application (or application was made on behalf
of such individual) for assistance.’’.
(d) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to medical assistance, child health assistance, and preg- 42 USC 1396a
nancy-related assistance with respect to individuals whose eligibility note.
for such medical assistance, child health assistance, or pregnancy-
related assistance is based on an application made on or after
the first day of the first quarter that begins after December 31,
2026.
(e) IMPLEMENTATION FUNDING.—For the purposes of carrying Time period.
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
139 STAT. 300 PUBLIC LAW 119–21—JULY 4, 2025
Medicare & Medicaid Services, $10,000,000 for fiscal year 2026,
to remain available until expended.
Time periods. SEC. 71113. FEDERAL PAYMENTS TO PROHIBITED ENTITIES.
(a) IN GENERAL.—No Federal funds that are considered direct
spending and provided to carry out a State plan under title XIX
of the Social Security Act or a waiver of such a plan shall be
used to make payments to a prohibited entity for items and services
furnished during the 1-year period beginning on the date of the
enactment of this Act, including any payments made directly to
the prohibited entity or under a contract or other arrangement
between a State and a covered organization.
(b) DEFINITIONS.—In this section:
(1) PROHIBITED ENTITY.—The term ‘‘prohibited entity’’
means an entity, including its affiliates, subsidiaries, succes-
sors, and clinics—
(A) that, as of the first day of the first quarter begin-
ning after the date of enactment of this Act—
(i) is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code;
(ii) is an essential community provider described
in section 156.235 of title 45, Code of Federal Regula-
tions (as in effect on the date of enactment of this
Act), that is primarily engaged in family planning serv-
ices, reproductive health, and related medical care;
and
(iii) provides for abortions, other than an abor-
tion—
(I) if the pregnancy is the result of an act
of rape or incest; or
(II) in the case where a woman suffers from
a physical disorder, physical injury, or physical
illness, including a life-endangering physical condi-
tion caused by or arising from the pregnancy itself,
that would, as certified by a physician, place the
woman in danger of death unless an abortion is
performed; and
(B) for which the total amount of Federal and State
expenditures under the Medicaid program under title XIX
of the Social Security Act for medical assistance furnished
in fiscal year 2023 made directly, or by a covered organiza-
tion, to the entity or to any affiliates, subsidiaries, succes-
sors, or clinics of the entity, or made to the entity or
to any affiliates, subsidiaries, successors, or clinics of the
entity as part of a nationwide health care provider network,
exceeded $800,000.
(2) DIRECT SPENDING.—The term ‘‘direct spending’’ has the
meaning given that term under section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)).
(3) COVERED ORGANIZATION.—The term ‘‘covered organiza-
tion’’ means a managed care entity (as defined in section
1932(a)(1)(B) of the Social Security Act (42 U.S.C. 1396u–
2(a)(1)(B))) or a prepaid inpatient health plan or prepaid
ambulatory health plan (as such terms are defined in section
1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 301
(4) STATE.—The term ‘‘State’’ has the meaning given such
term in section 1101 of the Social Security Act (42 U.S.C.
1301).
(c) IMPLEMENTATION FUNDING.—For the purposes of carrying
out this section, there are appropriated, out of any monies in
the Treasury not otherwise appropriated, to the Administrator of
the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal
year 2026, to remain available until expended.
Subchapter C—Stopping Abusive Financing Practices
SEC. 71114. SUNSETTING INCREASED FMAP INCENTIVE.
Section 1905(ii)(3) of the Social Security Act (42 U.S.C.
1396d(ii)(3)) is amended—
(1) by striking ‘‘which has not’’ and inserting the following:
‘‘which—
‘‘(A) has not’’;
(2) in subparagraph (A), as so inserted, by striking the
period at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new subparagraph:
‘‘(B) begins to expend amounts for all such individuals
prior to January 1, 2026.’’.
SEC. 71115. PROVIDER TAXES. Time periods.
(a) CHANGE IN THRESHOLD FOR HOLD HARMLESS PROVISION
OF BROAD-BASED HEALTH CARE RELATED TAXES.—Section
1903(w)(4) of the Social Security Act (42 U.S.C. 1396b(w)(4)) is
amended—
(1) in subparagraph (C)(ii), by inserting ‘‘, and for fiscal
years beginning on or after October 1, 2026, the applicable
percent determined under subparagraph (D) shall be sub-
stituted for ‘6 percent’ each place it appears’’ after ‘‘each place
it appears’’; and
(2) by inserting after subparagraph (C)(ii), the following
new subparagraph:
‘‘(D)(i) For purposes of subparagraph (C)(ii), the applicable Applicability.
percent determined under this subparagraph is— Determinations.
‘‘(I) in the case of a non-expansion State or unit of Effective dates.
local government in such State and a class of health care
items or services described in section 433.56(a) of title
42, Code of Federal Regulations (as in effect on May 1,
2025)—
‘‘(aa) if, on the date of enactment of this subpara-
graph, the non-expansion State or unit of local govern-
ment in such State has enacted a tax and imposes
such tax on such class and the Secretary determines
that the tax is within the hold harmless threshold
as of that date, the applicable percent of net patient
revenue attributable to such class that has been so
determined; and
‘‘(bb) if, on the date of enactment of this subpara-
graph, the non-expansion State or unit of local govern-
ment in such State has not enacted or does not impose
a tax with respect to such class, 0 percent; and
‘‘(II) in the case of an expansion State or unit of local
government in such State and a class of health care items
or services described in section 433.56(a) of title 42, Code
139 STAT. 302 PUBLIC LAW 119–21—JULY 4, 2025
of Federal Regulations (as in effect on May 1, 2025), subject
to clause (iv)—
‘‘(aa) if, on the date of enactment of this subpara-
graph, the expansion State or unit of local government
in such State has enacted a tax and imposes such
tax on such class and the Secretary determines that
the tax is within the hold harmless threshold as of
that date, the lower of—
‘‘(AA) the applicable percent of net patient
revenue attributable to such class that has been
so determined; and
‘‘(BB) the applicable percent specified in clause
(ii) for the fiscal year; and
‘‘(bb) if, on the date of enactment of this subpara-
graph, the expansion State or unit of local government
in such State has not enacted or does not impose
a tax with respect to such class, 0 percent.
‘‘(ii) For purposes of clause (i)(II)(aa)(BB), the
applicable percent is—
‘‘(I) for fiscal year 2028, 5.5 percent;
‘‘(II) for fiscal year 2029, 5 percent;
‘‘(III) for fiscal year 2030, 4.5 percent;
‘‘(IV) for fiscal year 2031, 4 percent; and
‘‘(V) for fiscal year 2032 and each subsequent fiscal
year, 3.5 percent.
Definitions. ‘‘(iii) For purposes of clause (i):
‘‘(I) EXPANSION STATE.—The term ‘expansion State’
means a State that, beginning on January 1, 2014,
or on any date thereafter, elects to provide medical
assistance to all individuals described in section
1902(a)(10)(A)(i)(VIII) under the State plan under this
title or under a waiver of such plan.
‘‘(II) NON-EXPANSION STATE.—The term ‘non-expan-
sion State’ means a State that is not an expansion
State.
‘‘(iv) In the case of a tax of an expansion State or
unit of local government in such State in effect on the
date of enactment of this clause, that applies to a class
of health care items or services that is described in para-
graph (3) or (4) of section 433.56(a) of title 42, Code of
Federal Regulations (as in effect on May 1, 2025), and
for which, on such date of enactment, is within the hold
harmless threshold (as determined by the Secretary), the
applicable percent of net patient revenue attributable to
such class that has been so determined shall apply for
a fiscal year instead of the applicable percent specified
in clause (ii) for the fiscal year.’’.
42 USC 1396b (b) NON-APPLICATION TO TERRITORIES.—The amendments made
note. by this section shall only apply with respect to a State that is
1 of the 50 States or the District of Columbia.
(c) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $20,000,000 for fiscal year 2026,
to remain available until expended.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 303
SEC. 71116. STATE DIRECTED PAYMENTS. 42 USC 1396a
note.
(a) IN GENERAL.—Subject to subsection (b), the Secretary of
Health and Human Services (in this section referred to as the
Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of
Federal Regulations (or a successor regulation) such that, with
respect to a payment described in such section made for a service
furnished during a rating period beginning on or after the date
of the enactment of this Act, the total payment rate for such
service is limited to—
(1) in the case of a State that provides coverage to all
individuals described in section 1902(a)(10)(A)(i)(VIII) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is
equivalent to minimum essential coverage (as described in sec-
tion 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and
determined in accordance with standards prescribed by the
Secretary in regulations) under the State plan (or waiver of
such plan) of such State under title XIX of such Act, 100
percent of the specified total published Medicare payment rate
(or, in the absence of a specified total published Medicare
payment rate, the payment rate under a Medicaid State plan
(or under a waiver of such plan)); or
(2) in the case of a State other than a State described
in paragraph (1), 110 percent of the specified total published
Medicare payment rate (or, in the absence of a specified total
published Medicare payment rate, the payment rate under
a Medicaid State plan (or under a waiver of such plan)).
(b) GRANDFATHERING CERTAIN PAYMENTS.—In the case of a Determination.
payment described in section 438.6(c)(2)(iii) of title 42, Code of Effective dates.
Federal Regulations (or a successor regulation) for which written Time periods..
prior approval (or a good faith effort to receive such approval,
as determined by the Secretary) was made before May 1, 2025,
or a payment described in such section for a rural hospital (as
defined in subsection (d)(2)) for which written prior approval (or
a good faith effort to receive such approval, as determined by
the Secretary) was made by the date of enactment of this Act,
for the rating period occurring within 180 days of the date of
the enactment of this Act, or a payment so described for such
rating period for which a completed preprint was submitted to
the Secretary prior to the date of enactment of this Act, beginning
with the rating period on or after January 1, 2028, the total amount
of such payment shall be reduced by 10 percentage points each
year until the total payment rate for such service is equal to
the rate for such service specified in subsection (a).
(c) TREATMENT OF EXPANSION STATES.—The revisions described Applicability.
in subsection (a) shall provide that, with respect to a State that
begins providing the coverage described in paragraph (1) of such
subsection on or after the date of the enactment of this Act, the
limitation described in such paragraph shall apply to such State
with respect to a payment described in section 438.6(c)(2)(iii) of
title 42, Code of Federal Regulations (or a successor regulation)
for a service furnished during a rating period beginning on or
after the date of enactment of this Act.
(d) DEFINITIONS.—In this section:
(1) RATING PERIOD.—The term ‘‘rating period’’ has the
meaning given such term in section 438.2 of title 42, Code
of Federal Regulations (or a successor regulation).
139 STAT. 304 PUBLIC LAW 119–21—JULY 4, 2025
(2) RURAL HOSPITAL.—The term ‘‘rural hospital’’ means the
following:
(A) A subsection (d) hospital (as defined in paragraph
(1)(B) of section 1886(d) of the Social Security Act (42
U.S.C. 1395ww(d))) that—
(i) is located in a rural area (as defined in para-
graph (2)(D) of such section);
(ii) is treated as being located in a rural area
pursuant to paragraph (8)(E) of such section; or
(iii) is located in a rural census tract of a metropoli-
tan statistical area (as determined under the most
recent modification of the Goldsmith Modification,
originally published in the Federal Register on Feb-
ruary 27, 1992 (57 Fed. Reg. 6725)).
(B) A critical access hospital (as defined in section
1861(mm)(1) of such Act (42 U.S.C. 1395x(mm)(1))).
(C) A sole community hospital (as defined in section
1886(d)(5)(D)(iii) of such Act (42 U.S.C.
1395ww(d)(5)(D)(iii))).
(D) A Medicare-dependent, small rural hospital (as
defined in section 1886(d)(5)(G)(iv) of such Act (42 U.S.C.
1395ww(d)(5)(G)(iv))).
(E) A low-volume hospital (as defined in section
1886(d)(12)(C) of such Act (42 U.S.C. 1395ww(d)(12)(C))).
(F) A rural emergency hospital (as defined in section
1861(kkk)(2) of such Act (42 U.S.C. 1395x(kkk)(2))).
(3) STATE.—The term ‘‘State’’ means 1 of the 50 States
or the District of Columbia.
(4) TOTAL PUBLISHED MEDICARE PAYMENT RATE.—The term
‘‘total published Medicare payment rate’’ has the meaning given
to such term in section 438.6(a) of title 42, Code of Federal
Regulations (or a successor regulation).
(5) WRITTEN PRIOR APPROVAL.—The term ‘‘written prior
approval’’ has the meaning given to such term in section
438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a
successor regulation).
Time periods. (e) FUNDING.—There are appropriated out of any monies in
the Treasury not otherwise appropriated $7,000,000 for each of
fiscal years 2026 through 2033 for purposes of carrying out this
section, to remain available until expended.
SEC. 71117. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX
REQUIREMENT FOR MEDICAID PROVIDER TAX.
(a) IN GENERAL.—Section 1903(w) of the Social Security Act
(42 U.S.C. 1396b(w)) is amended—
(1) in paragraph (3)(E), by inserting after clause (ii)(II)
the following new clause:
‘‘(iii) For purposes of clause (ii)(I), a tax is not considered
to be generally redistributive if any of the following conditions
apply:
‘‘(I) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as defined in paragraph (7)(J))
explicitly defined by its relatively lower volume or percentage
of Medicaid taxable units (as defined in paragraph (7)(H)) is
lower than the tax rate imposed on any other taxpayer or
tax rate group explicitly defined by its relatively higher volume
or percentage of Medicaid taxable units.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 305
‘‘(II) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as so defined) based upon
its Medicaid taxable units (as so defined) is higher than the
tax rate imposed on any taxpayer or tax rate group based
upon its non-Medicaid taxable unit (as defined in paragraph
(7)(I)).
‘‘(III) The tax excludes or imposes a lower tax rate on
a taxpayer or tax rate group (as so defined) based on or defined
by any description that results in the same effect as described
in subclause (I) or (II) for a taxpayer or tax rate group.
Characteristics that may indicate such type of exclusion include
the use of terminology to establish a tax rate group—
‘‘(aa) based on payments or expenditures made under
the program under this title without mentioning the term
‘Medicaid’ (or any similar term) to accomplish the same
effect as described in subclause (I) or (II); or
‘‘(bb) that closely approximates a taxpayer or tax rate
group under the program under this title, to the same
effect as described in subclause (I) or (II).’’; and
(2) in paragraph (7), by adding at the end the following Definitions.
new subparagraphs:
‘‘(H) The term ‘Medicaid taxable unit’ means a unit that
is being taxed within a health care related tax that is applicable
to the program under this title. Such term includes a unit
that is used as the basis for—
‘‘(i) payment under the program under this title (such
as Medicaid bed days);
‘‘(ii) Medicaid revenue;
‘‘(iii) costs associated with the program under this title
(such as Medicaid charges, claims, or expenditures); and
‘‘(iv) other units associated with the program under
this title, as determined by the Secretary.
‘‘(I) The term ‘non-Medicaid taxable unit’ means a unit
that is being taxed within a health care related tax that is
not applicable to the program under this title. Such term
includes a unit that is used as the basis for—
‘‘(i) payment by non-Medicaid payers (such as non-
Medicaid bed days);
‘‘(ii) non-Medicaid revenue;
‘‘(iii) costs that are not associated with the program
under this title (such as non-Medicaid charges, non-Med-
icaid claims, or non-Medicaid expenditures); and
‘‘(iv) other units not associated with the program under
this title, as determined by the Secretary.
‘‘(J) The term ‘tax rate group’ means a group of entities
contained within a permissible class of a health care related
tax that are taxed at the same rate.’’.
(b) NON-APPLICATION TO TERRITORIES.—The amendments made 42 USC 1396b
by this section shall only apply with respect to a State that is note.
1 of the 50 States or the District of Columbia.
(c) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall take effect upon the date of enactment of this Act, subject Determination.
to any applicable transition period determined appropriate by the Time period.
42 USC 1396b
Secretary of Health and Human Services, not to exceed 3 fiscal note.
years.
139 STAT. 306 PUBLIC LAW 119–21—JULY 4, 2025
SEC. 71118. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEM-
ONSTRATION PROJECTS UNDER SECTION 1115.
(a) IN GENERAL.—Section 1115 of the Social Security Act (42
U.S.C. 1315) is amended by adding at the end the following new
subsection:
‘‘(g) REQUIREMENT OF BUDGET NEUTRALITY FOR MEDICAID DEM-
ONSTRATION PROJECTS.—
Effective date. ‘‘(1) IN GENERAL.—Beginning January 1 2027, the Secretary
Certification. may not approve an application for (or renewal or amendment
of) an experimental, pilot, or demonstration project undertaken
under subsection (a) to promote the objectives of title XIX
in a State (in this subsection referred to as a ‘Medicaid dem-
onstration project’) unless the Chief Actuary for the Centers
for Medicare & Medicaid Services certifies that such project,
or, in the case of a renewal, the duration of the preceding
waiver, is not expected to result in an increase in the amount
of Federal expenditures compared to the amount that such
expenditures would otherwise be in the absence of such project.
For purposes of this subsection, expenditures for the coverage
of populations and services that the State could have otherwise
provided through its Medicaid State plan or other authority
under title XIX, including expenditures that could be made
under such authority but for the provision of such services
at a different site of service than authorized under such State
plan or other authority, shall be considered expenditures in
the absence of such a project.
‘‘(2) TREATMENT OF SAVINGS.—In the event that expendi-
tures with respect to a State under a Medicaid demonstration
project are, during an approval period for such project, less
than the amount of such expenditures that would have other-
wise been made in the absence of such project, the Secretary
shall specify the methodology to be used with respect to the
subsequent approval period for such project for purposes of
taking the difference between such expenditures into account.’’.
Time periods. (b) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $5,000,000 for each of fiscal years
2026 and 2027, to remain available until expended.
Subchapter D—Increasing Personal Accountability
Time periods. SEC. 71119. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID
COMMUNITY ENGAGEMENT REQUIREMENTS FOR CER-
TAIN INDIVIDUALS.
(a) IN GENERAL.—Section 1902 of the Social Security Act (42
U.S.C. 1396a), as amended by sections 71103 and 71104, is further
amended by adding at the end the following new subsection:
‘‘(xx) COMMUNITY ENGAGEMENT REQUIREMENT FOR APPLICABLE
INDIVIDUALS.—
Deadline. ‘‘(1) IN GENERAL.—Except as provided in paragraph (11),
beginning not later than the first day of the first quarter
that begins after December 31, 2026, or, at the option of the
State under a waiver or demonstration project under section
1115 or the State plan, such earlier date as the State may
specify, subject to the succeeding provisions of this subsection,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 307
a State shall provide, as a condition of eligibility for medical
assistance for an applicable individual, that such individual
is required to demonstrate community engagement under para-
graph (2)—
‘‘(A) in the case of an applicable individual who has
filed an application for medical assistance under a State
plan (or a waiver of such plan) under this title, for 1
or more but not more than 3 (as specified by the State)
consecutive months immediately preceding the month
during which such individual applies for such medical
assistance; and
‘‘(B) in the case of an applicable individual enrolled
and receiving medical assistance under a State plan (or
under a waiver of such plan) under this title, for 1 or
more (as specified by the State) months, whether or not
consecutive—
‘‘(i) during the period between such individual’s
most recent determination (or redetermination, as
applicable) of eligibility and such individual’s next
regularly scheduled redetermination of eligibility (as
verified by the State as part of such regularly sched-
uled redetermination of eligibility); or
‘‘(ii) in the case of a State that has elected under
paragraph (4) to conduct more frequent verifications
of compliance with the requirement to demonstrate
community engagement, during the period between the
most recent and next such verification with respect
to such individual.
‘‘(2) COMMUNITY ENGAGEMENT COMPLIANCE DESCRIBED.—
Subject to paragraph (3), an applicable individual demonstrates Determination.
community engagement under this paragraph for a month if Criteria.
such individual meets 1 or more of the following conditions Regulations.
with respect to such month, as determined in accordance with
criteria established by the Secretary through regulation:
‘‘(A) The individual works not less than 80 hours.
‘‘(B) The individual completes not less than 80 hours
of community service.
‘‘(C) The individual participates in a work program
for not less than 80 hours.
‘‘(D) The individual is enrolled in an educational pro-
gram at least half-time.
‘‘(E) The individual engages in any combination of the
activities described in subparagraphs (A) through (D), for
a total of not less than 80 hours.
‘‘(F) The individual has a monthly income that is not
less than the applicable minimum wage requirement under
section 6 of the Fair Labor Standards Act of 1938, multi-
plied by 80 hours.
‘‘(G) The individual had an average monthly income
over the preceding 6 months that is not less than the
applicable minimum wage requirement under section 6
of the Fair Labor Standards Act of 1938 multiplied by
80 hours, and is a seasonal worker, as described in section
45R(d)(5)(B) of the Internal Revenue Code of 1986 .
‘‘(3) EXCEPTIONS.—
‘‘(A) MANDATORY EXCEPTION FOR CERTAIN INDIVID-
UALS.—The State shall deem an applicable individual to
139 STAT. 308 PUBLIC LAW 119–21—JULY 4, 2025
have demonstrated community engagement under para-
graph (2) for a month, and may elect to not require an
individual to verify information resulting in such deeming,
if—
‘‘(i) for part or all of such month, the individual—
‘‘(I) was a specified excluded individual (as
defined in paragraph (9)(A)(ii)); or
‘‘(II) was—
‘‘(aa) under the age of 19;
‘‘(bb) entitled to, or enrolled for, benefits
under part A of title XVIII, or enrolled for
benefits under part B of title XVIII; or
‘‘(cc) described in any of subclauses (I)
through (VII) of subsection (a)(10)(A)(i); or
‘‘(ii) at any point during the 3-month period ending
on the first day of such month, the individual was
an inmate of a public institution.
‘‘(B) OPTIONAL EXCEPTION FOR SHORT-TERM HARDSHIP
EVENTS.—
Procedures. ‘‘(i) IN GENERAL.—The State plan (or waiver of
such plan) may provide, in the case of an applicable
individual who experiences a short-term hardship
event during a month, that the State shall, under
procedures established by the State (in accordance with
standards specified by the Secretary), in the case of
a short-term hardship event described in clause (ii)(II)
and, upon the request of such individual, a short-
term hardship event described in subclause (I) or (III)
of clause (ii), deem such individual to have dem-
onstrated community engagement under paragraph (2)
for such month.
‘‘(ii) SHORT-TERM HARDSHIP EVENT DEFINED.—For
purposes of this subparagraph, an applicable individual
experiences a short-term hardship event during a
month if, for part or all of such month—
‘‘(I) such individual receives inpatient hospital
services, nursing facility services, services in an
intermediate care facility for individuals with
intellectual disabilities, inpatient psychiatric hos-
pital services, or such other services of similar
acuity (including outpatient care relating to other
services specified in this subclause) as the Sec-
retary determines appropriate;
‘‘(II) such individual resides in a county (or
equivalent unit of local government)—
‘‘(aa) in which there exists an emergency
or disaster declared by the President pursuant
to the National Emergencies Act or the Robert
T. Stafford Disaster Relief and Emergency
Assistance Act; or
‘‘(bb) that, subject to a request from the
State to the Secretary, made in such form,
at such time, and containing such information
as the Secretary may require, has an
unemployment rate that is at or above the
lesser of—
‘‘(AA) 8 percent; or
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 309
‘‘(BB) 1.5 times the national
unemployment rate; or
‘‘(III) such individual or their dependent must
travel outside of their community for an extended
period of time to receive medical services necessary
to treat a serious or complex medical condition
(as described in paragraph (9)(A)(ii)(V)(ee)) that
are not available within their community of resi-
dence.
‘‘(4) OPTION TO CONDUCT MORE FREQUENT COMPLIANCE
VERIFICATIONS.—With respect to an applicable individual
enrolled and receiving medical assistance under a State plan
(or a waiver of such plan) under this title, the State shall
verify (in accordance with procedures specified by the Secretary)
that each such individual has met the requirement to dem-
onstrate community engagement under paragraph (1) during
each such individual’s regularly scheduled redetermination of
eligibility, except that a State may provide for such verifications
more frequently.
‘‘(5) EX PARTE VERIFICATIONS.—For purposes of verifying Standards.
that an applicable individual has met the requirement to dem- Processes.
onstrate community engagement under paragraph (1), or deter-
mining such individual to be deemed to have demonstrated
community engagement under paragraph (3), or that an indi-
vidual is a specified excluded individual under paragraph
(9)(A)(ii), the State shall, in accordance with standards estab-
lished by the Secretary, establish processes and use reliable
information available to the State (such as payroll data or
payments or encounter data under this title for individuals
and data on payments to such individuals for the provision
of services covered under this title) without requiring, where
possible, the applicable individual to submit additional informa-
tion.
‘‘(6) PROCEDURE IN THE CASE OF NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If a State is unable to verify that Notices.
an applicable individual has met the requirement to dem-
onstrate community engagement under paragraph (1)
(including, if applicable, by verifying that such individual
was deemed to have demonstrated community engagement
under paragraph (3)) the State shall (in accordance with
standards specified by the Secretary)—
‘‘(i) provide such individual with the notice of non-
compliance described in subparagraph (B);
‘‘(ii)(I) provide such individual with a period of
30 calendar days, beginning on the date on which
such notice of noncompliance is received by the indi-
vidual, to—
‘‘(aa) make a satisfactory showing to the State
of compliance with such requirement (including,
if applicable, by showing that such individual was
or should be deemed to have demonstrated commu-
nity engagement under paragraph (3)); or
‘‘(bb) make a satisfactory showing to the State
that such requirement does not apply to such indi-
vidual on the basis that such individual does not
meet the definition of applicable individual under
paragraph (9)(A); and
139 STAT. 310 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(II) if such individual is enrolled under the State
plan (or a waiver of such plan) under this title, continue
to provide such individual with medical assistance
during such 30-calendar-day period; and
Deadline. ‘‘(iii) if no such satisfactory showing is made and
Determination. the individual is not a specified excluded individual
described in paragraph (9)(A)(ii), deny such individual’s
application for medical assistance under the State plan
(or waiver of such plan) or, as applicable, disenroll
such individual from the plan (or waiver of such plan)
not later than the end of the month following the
month in which such 30-calendar-day period ends, pro-
vided that—
‘‘(I) the State first determines whether, with
respect to the individual, there is any other basis
for eligibility for medical assistance under the
State plan (or waiver of such plan) or for another
insurance affordability program; and
‘‘(II) the individual is provided written notice
and granted an opportunity for a fair hearing in
accordance with subsection (a)(3).
‘‘(B) NOTICE.—The notice of noncompliance provided
to an applicable individual under subparagraph (A)(i) shall
include information (in accordance with standards specified
by the Secretary) on—
‘‘(i) how such individual may make a satisfactory
showing of compliance with such requirement (as
described in subparagraph (A)(ii)) or make a satisfac-
tory showing that such requirement does not apply
to such individual on the basis that such individual
does not meet the definition of applicable individual
under paragraph (9)(A); and
‘‘(ii) how such individual may reapply for medical
assistance under the State plan (or a waiver of such
plan) under this title in the case that such individuals’
application is denied or, as applicable, in the case
that such individual is disenrolled from the plan (or
waiver).
‘‘(7) TREATMENT OF NONCOMPLIANT INDIVIDUALS IN RELA-
TION TO CERTAIN OTHER PROVISIONS.—
‘‘(A) CERTAIN FMAP INCREASES.—A State shall not be
treated as not providing medical assistance to all individ-
uals described in section 1902(a)(10)(A)(i)(VIII), or as not
expending amounts for all such individuals under the State
plan (or waiver of such plan), solely because such an indi-
vidual is determined ineligible for medical assistance under
the State plan (or waiver) on the basis of a failure to
meet the requirement to demonstrate community engage-
ment under paragraph (1).
‘‘(B) OTHER PROVISIONS.—For purposes of section
36B(c)(2)(B) of the Internal Revenue Code of 1986, an indi-
vidual shall be deemed to be eligible for minimum essential
coverage described in section 5000A(f)(1)(A)(ii) of such Code
for a month if such individual would have been eligible
for medical assistance under a State plan (or a waiver
of such plan) under this title but for a failure to meet
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 311
the requirement to demonstrate community engagement
under paragraph (1).
‘‘(8) OUTREACH.—
‘‘(A) IN GENERAL.—In accordance with standards speci- Effective date.
fied by the Secretary, beginning not later than the date Notification.
that precedes December 31, 2026 (or, if the State elects
under paragraph (1) to specify an earlier date, such earlier
date) by the number of months specified by the State
under paragraph (1)(A) plus 3 months, and periodically
thereafter, the State shall notify applicable individuals
enrolled under a State plan (or waiver) under this title
of the requirement to demonstrate community engagement
under this subsection. Such notice shall include information
on—
‘‘(i) how to comply with such requirement,
including an explanation of the exceptions to such
requirement under paragraph (3) and the definition
of the term ‘applicable individual’ under paragraph
(9)(A);
‘‘(ii) the consequences of noncompliance with such
requirement; and
‘‘(iii) how to report to the State any change in
the individual’s status that could result in—
‘‘(I) the applicability of an exception under
paragraph (3) (or the end of the applicability of
such an exception); or
‘‘(II) the individual qualifying as a specified
excluded individual under paragraph (9)(A)(ii).
‘‘(B) FORM OF OUTREACH NOTICE.—A notice required Electronic
under subparagraph (A) shall be delivered— formats.
‘‘(i) by regular mail (or, if elected by the individual, Mail.
in an electronic format); and
‘‘(ii) in 1 or more additional forms, which may
include telephone, text message, an internet website,
other commonly available electronic means, and such
other forms as the Secretary determines appropriate.
‘‘(9) DEFINITIONS.—In this subsection:
‘‘(A) APPLICABLE INDIVIDUAL.—
‘‘(i) IN GENERAL.—The term ‘applicable individual’
means an individual (other than a specified excluded
individual (as defined in clause (ii)))—
‘‘(I) who is eligible to enroll (or is enrolled)
under the State plan under subsection
(a)(10)(A)(i)(VIII); or
‘‘(II) who—
‘‘(aa) is otherwise eligible to enroll (or is
enrolled) under a waiver of such plan that
provides coverage that is equivalent to min-
imum essential coverage (as described in sec-
tion 5000A(f)(1)(A) of the Internal Revenue
Code of 1986 and as determined in accordance
with standards prescribed by the Secretary
in regulations); and
‘‘(bb) has attained the age of 19 and is
under 65 years of age, is not pregnant, is
not entitled to, or enrolled for, benefits under
part A of title XVIII, or enrolled for benefits
139 STAT. 312 PUBLIC LAW 119–21—JULY 4, 2025
under part B of title XVIII, and is not other-
wise eligible to enroll under such plan.
‘‘(ii) SPECIFIED EXCLUDED INDIVIDUAL.—For pur-
poses of clause (i), the term ‘specified excluded indi-
vidual’ means an individual, as determined by the
State (in accordance with standards specified by the
Secretary)—
‘‘(I) who is described in subsection
(a)(10)(A)(i)(IX);
‘‘(II) who—
‘‘(aa) is an Indian or an Urban Indian
(as such terms are defined in paragraphs (13)
and (28) of section 4 of the Indian Health
Care Improvement Act);
‘‘(bb) is a California Indian described in
section 809(a) of such Act; or
‘‘(cc) has otherwise been determined
eligible as an Indian for the Indian Health
Service under regulations promulgated by the
Secretary;
‘‘(III) who is the parent, guardian, caretaker
relative, or family caregiver (as defined in section
2 of the RAISE Family Caregivers Act) of a
dependent child 13 years of age and under or
a disabled individual;
‘‘(IV) who is a veteran with a disability rated
as total under section 1155 of title 38, United
States Code;
‘‘(V) who is medically frail or otherwise has
special medical needs (as defined by the Secretary),
including an individual—
‘‘(aa) who is blind or disabled (as defined
in section 1614);
‘‘(bb) with a substance use disorder;
‘‘(cc) with a disabling mental disorder;
‘‘(dd) with a physical, intellectual or
developmental disability that significantly
impairs their ability to perform 1 or more
activities of daily living; or
‘‘(ee) with a serious or complex medical
condition;
‘‘(VI) who—
‘‘(aa) is in compliance with any require-
ments imposed by the State pursuant to sec-
tion 407; or
‘‘(bb) is a member of a household that
receives supplemental nutrition assistance
program benefits under the Food and Nutri-
tion Act of 2008 and is not exempt from a
work requirement under such Act;
‘‘(VII) who is participating in a drug addiction
or alcoholic treatment and rehabilitation program
(as defined in section 3(h) of the Food and Nutri-
tion Act of 2008);
‘‘(VIII) who is an inmate of a public institution;
or
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 313
‘‘(IX) who is pregnant or entitled to
postpartum medical assistance under paragraph
(5) or (16) of subsection (e).
‘‘(B) EDUCATIONAL PROGRAM.—The term ‘educational
program’ includes—
‘‘(i) an institution of higher education (as defined
in section 101 of the Higher Education Act of 1965);
and
‘‘(ii) a program of career and technical education
(as defined in section 3 of the Carl D. Perkins Career
and Technical Education Act of 2006).
‘‘(C) STATE.—The term ‘State’ means 1 of the 50 States
or the District of Columbia.
‘‘(D) WORK PROGRAM.—The term ‘work program’ has
the meaning given such term in section 6(o)(1) of the Food
and Nutrition Act of 2008.
‘‘(10) PROHIBITING WAIVER OF COMMUNITY ENGAGEMENT
REQUIREMENTS.—Notwithstanding section 1115(a), the provi-
sions of this subsection may not be waived.
‘‘(11) SPECIAL IMPLEMENTATION RULE.— Determinations.
‘‘(A) IN GENERAL.—Subject to subparagraph (C), the
Secretary may exempt a State from compliance with the
requirements of this subsection if—
‘‘(i) the State submits to the Secretary a request
for such exemption, made in such form and at such
time as the Secretary may require, and including the
information specified in subparagraph (B); and
‘‘(ii) the Secretary determines that based on such
request, the State is demonstrating a good faith effort
to comply with the requirements of this subsection.
‘‘(B) GOOD FAITH EFFORT DETERMINATION.—In deter-
mining whether a State is demonstrating a good faith
effort for purposes of subparagraph (A)(ii), the Secretary
shall consider—
‘‘(i) any actions taken by the State toward compli-
ance with the requirements of this subsection;
‘‘(ii) any significant barriers to or challenges in
meeting such requirements, including related to
funding, design, development, procurement, or installa-
tion of necessary systems or resources;
‘‘(iii) the State’s detailed plan and timeline for
achieving full compliance with such requirements,
including any milestones of such plan (as defined by
the Secretary); and
‘‘(iv) any other criteria determined appropriate by
the Secretary.
‘‘(C) DURATION OF EXEMPTION.—
‘‘(i) IN GENERAL.—An exemption granted under Expiration date.
subparagraph (A) shall expire not later than December
31, 2028, and may not be renewed beyond such date.
‘‘(ii) EARLY TERMINATION.—The Secretary may
terminate an exemption granted under subparagraph
(A) prior to the expiration date of such exemption
if the Secretary determined that the State has—
‘‘(I) failed to comply with the reporting require-
ments described in subparagraph (D); or
139 STAT. 314 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(II) based on the information provided pursu-
ant to subparagraph (D), failed to make continued
good faith efforts toward compliance with the
requirements of this subsection.
‘‘(D) REPORTING REQUIREMENTS.—A State granted an
exemption under subparagraph (A) shall submit to the
Secretary—
‘‘(i) quarterly progress reports on the State’s status
in achieving the milestones toward full compliance
described in subparagraph (B)(iii); and
‘‘(ii) information on specific risks or newly identi-
fied barriers or challenges to full compliance, including
the State’s plan to mitigate such risks, barriers, or
challenges.’’.
(b) CONFORMING AMENDMENT.—Section 1902(a)(10)(A)(i)(VIII)
of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is
amended by striking ‘‘subject to subsection (k)’’ and inserting ‘‘sub-
ject to subsections (k) and (xx)’’.
42 USC 1396b (c) PROHIBITING CONFLICTS OF INTEREST.—A State shall not
note. use a Medicaid managed care entity or other specified entity (as
such terms are defined in section 1903(m)(9)(D)), or other contractor
to determine beneficiary compliance under such section unless the
contractor has no direct or indirect financial relationship with any
Medicaid managed care entity or other specified entity that is
responsible for providing or arranging for coverage of medical assist-
ance for individuals enrolled with the entity pursuant to a contract
with such State.
Deadline. (d) INTERIM FINAL RULEMAKING.—Not later than June 1, 2026,
42 USC 1396a the Secretary of Health and Human Services shall promulgate
note.
an interim final rule for purposes of implementing the provisions
of, and the amendments made by, this section. Any action taken
to implement the provisions of, and the amendments made by,
this section shall not be subject to the provisions of section 553
of title 5, United States Code.
42 USC 1396a (e) DEVELOPMENT OF GOVERNMENT EFFICIENCY GRANTS TO
note. STATES.—
(1) IN GENERAL.—In order for States to establish systems
necessary to carry out the provisions of, and amendments made
by, this section or other sections of this chapter that pertain
to conducting eligibility determinations or redeterminations,
the Secretary of Health and Human Services shall—
(A) out of amounts appropriated under paragraph
(3)(A), award to each State a grant equal to the amount
specified in paragraph (2) for such State; and
(B) out of amounts appropriated under paragraph
(3)(B), distribute an equal amount among such States.
Effective date. (2) AMOUNT SPECIFIED.—For purposes of paragraph (1)(A),
the amount specified in this paragraph is an amount that
bears the same ratio to the amount appropriated under para-
graph (3)(A) as the number of applicable individuals (as defined
in section 1902(xx) of the Social Security Act, as added by
subsection (a)) residing in such State bears to the total number
of such individuals residing in all States, as of March 31,
2025.
(3) FUNDING.—There are appropriated, out of any monies
in the Treasury not otherwise appropriated—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 315
(A) $100,000,000 for fiscal year 2026 for purposes of
awarding grants under paragraph (1)(A), to remain avail-
able until expended; and
(B) $100,000,000 for fiscal year 2026 for purposes of
award grants under paragraph (1)(B), to remain available
until expended.
(4) DEFINITION.—In this subsection, the term ‘‘State’’ means
1 of the 50 States and the District of Columbia.
(f) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $200,000,000 for fiscal year 2026,
to remain available until expended.
SEC. 71120. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN Time periods.
EXPANSION INDIVIDUALS UNDER THE MEDICAID PRO-
GRAM.
(a) IN GENERAL.—Section 1916 of the Social Security Act (42 Effective dates.
U.S.C. 1396o) is amended—
(1) in subsection (a), in the matter preceding paragraph
(1), by inserting ‘‘(other than, beginning October 1, 2028, speci-
fied individuals (as defined in subsection (k)(3)))’’ after ‘‘individ-
uals’’; and
(2) by adding at the end the following new subsection:
‘‘(k) SPECIAL RULES FOR CERTAIN EXPANSION INDIVIDUALS.—
‘‘(1) PREMIUMS.—Beginning October 1, 2028, the State plan
shall provide that in the case of a specified individual (as
defined in paragraph (3)) who is eligible under the plan, no
enrollment fee, premium, or similar charge will be imposed
under the plan.
‘‘(2) REQUIRED IMPOSITION OF COST SHARING.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B) and Determination.
subsection (j), in the case of a specified individual, the
State plan shall, beginning October 1, 2028, provide for
the imposition of such deductions, cost sharing, or similar
charges determined appropriate by the State (in an amount
greater than $0) with respect to certain care, items, or
services furnished to such an individual, as determined
by the State.
‘‘(B) LIMITATIONS.—
‘‘(i) EXCLUSION OF CERTAIN SERVICES.—In no case
may a deduction, cost sharing, or similar charge be
imposed under the State plan with respect to care,
items, or services described in any of subparagraphs
(B) through (J) of subsection (a)(2), or any primary
care services, mental health care services, substance
use disorder services, or services provided by a Feder-
ally qualified health center (as defined in 1905(l)(2)),
certified community behavioral health clinic (as defined
in section 1905(jj)(2)), or rural health clinic (as defined
in 1905(l)(1)), furnished to a specified individual.
‘‘(ii) ITEM AND SERVICE LIMITATION.—
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), in no case may a deduction, cost
sharing, or similar charge imposed under the State
139 STAT. 316 PUBLIC LAW 119–21—JULY 4, 2025
plan with respect to care or an item or service
furnished to a specified individual exceed $35.
‘‘(II) SPECIAL RULES FOR PRESCRIPTION
DRUGS.—In no case may a deduction, cost sharing,
or similar charge imposed under the State plan
with respect to a prescription drug furnished to
a specified individual exceed the limit that would
be applicable under paragraph (2)(A)(i) or (2)(B)
of section 1916A(c) with respect to such drug and
individual if such drug so furnished were subject
to cost sharing under such section.
Applicability. ‘‘(iii) MAXIMUM LIMIT ON COST SHARING.—The total
aggregate amount of deductions, cost sharing, or
similar charges imposed under the State plan for all
individuals in the family may not exceed 5 percent
of the family income of the family involved, as applied
on a quarterly or monthly basis (as specified by the
State).
‘‘(C) CASES OF NONPAYMENT.—Notwithstanding sub-
section (e), a State may permit a provider participating
under the State plan to require, as a condition for the
provision of care, items, or services to a specified individual
entitled to medical assistance under this title for such
care, items, or services, the payment of any deductions,
cost sharing, or similar charges authorized to be imposed
with respect to such care, items, or services. Nothing in
this subparagraph shall be construed as preventing a pro-
vider from reducing or waiving the application of such
deductions, cost sharing, or similar charges on a case-
by-case basis.
‘‘(3) SPECIFIED INDIVIDUAL DEFINED.—For purposes of this
subsection, the term ‘specified individual’ means an individual
who has a family income (as determined in accordance with
section 1902(e)(14)) that exceeds the poverty line (as defined
in section 2110(c)(5)) applicable to a family of the size involved
and—
‘‘(A) is enrolled under section 1902(a)(10)(A)(i)(VIII);
or
‘‘(B) is described in such subsection and otherwise
enrolled under a waiver of the State plan that provides
coverage that is equivalent to minimum essential coverage
(as described in section 5000A(f)(1)(A) of the Internal Rev-
enue Code of 1986 and determined in accordance with
standards prescribed by the Secretary in regulations) to
all individuals described in section 1902(a)(10)(A)(i)(VIII).
‘‘(4) STATE DEFINED.—For purposes of this subsection, the
term ‘State’ means 1 of the 50 States or the District of
Columbia.’’.
(b) CONFORMING AMENDMENTS.—
(1) REQUIRED APPLICATION.—Section 1902(a)(14) of the
Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by
inserting ‘‘and provide for imposition of such deductions, cost
sharing, or similar charges for care, items, or services furnished
to specified individuals (as defined in paragraph (3) of section
1916(k)) in accordance with paragraph (2) of such section’’
after ‘‘section 1916’’.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 317
(2) NONAPPLICABILITY OF ALTERNATIVE COST SHARING.—Sec-
tion 1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o–
1(a)(1)) is amended, in the second sentence, by striking ‘‘or
(j)’’ and inserting ‘‘(j), or (k)’’.
(c) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $15,000,000 for fiscal year 2026,
to remain available until expended.
Subchapter E—Expanding Access to Care
SEC. 71121. MAKING CERTAIN ADJUSTMENTS TO COVERAGE OF HOME Time periods.
OR COMMUNITY-BASED SERVICES UNDER MEDICAID.
(a) EXPANDING HCBS COVERAGE UNDER SECTION 1915(C)
WAIVERS.—Section 1915(c) of the Social Security Act (42 U.S.C.
1396n(c)) is amended—
(1) in paragraph (3), by inserting ‘‘paragraph (11) or’’ before
‘‘subsection (h)(2)’’; and
(2) by adding at the end the following new paragraph:
‘‘(11) EXPANDING COVERAGE FOR HOME OR COMMUNITY-BASED Determinations.
SERVICES.—
‘‘(A) IN GENERAL.—Beginning July 1, 2028, notwithstanding Effective date.
paragraph (1), the Secretary may approve a waiver that is
standalone from any other waiver approved under this sub-
section to include as medical assistance under the State plan
of such State payment for part or all of the cost of home
or community-based services (other than room and board (as
described in paragraph (1))) approved by the Secretary which
are provided pursuant to a written plan of care to individuals
described in subparagraph (B)(iii). A waiver approved under
this paragraph shall be for an initial term of 3 years and,
upon the request of the State, shall be extended for additional
5-year periods unless the Secretary determines that for the
previous waiver period the requirements specified under this
subsection (excluding those excepted under subparagraph (B))
have not been met.
‘‘(B) STATE REQUIREMENTS.—In addition to the require-
ments specified under this subsection (except for the require-
ments described in subparagraphs (C) and (D) of paragraph
(2) and any other requirement specified under this subsection
that the Secretary determines to be inapplicable in the context
of a waiver that does not require individuals to have a deter-
mination described in paragraph (1)), a State shall meet the
following requirements as a condition of waiver approval:
‘‘(i) As of the date that such State requests a waiver
under this subsection to provide home or community-based
services to individuals described in clause (iii), all other
waivers (if any) granted under this subsection to such
State meet the requirements of this subsection.
‘‘(ii) The State demonstrates to the Secretary that
approval of a waiver under this subsection with respect
to individuals described in clause (iii) will not result in
a material increase of the average amount of time that
individuals with respect to whom a determination described
in paragraph (1) has been made will need to wait to receive
139 STAT. 318 PUBLIC LAW 119–21—JULY 4, 2025
home or community-based services under any other waiver
granted under this subsection, as determined by the Sec-
retary.
Criteria. ‘‘(iii) The State establishes needs-based criteria, subject
to the approval of the Secretary, regarding who will be
eligible for home or community-based services under a
waiver approved under this paragraph without requiring
such individuals to have a determination described in para-
graph (1), and specifies the home or community-based serv-
ices such individuals so eligible will receive.
Criteria. ‘‘(iv) The State establishes needs-based criteria for
determining whether an individual described in clause (iii)
requires the level of care provided in a hospital, nursing
facility, or an intermediate care facility for individuals
with developmental disabilities under the State plan or
under any waiver of such plan that are more stringent
than the needs-based criteria established under clause (iii)
for determining eligibility for home or community-based
services.
‘‘(v) The State attests that the State’s average per
capita expenditure for medical assistance under the State
plan (or waiver of such plan) provided with respect to
such individuals enrolled in a waiver under this paragraph
will not exceed the State’s average per capita expenditure
for medical assistance for individuals receiving institutional
care under the State plan (or waiver of such plan) for
the duration that the waiver under this paragraph is in
effect.
Data. ‘‘(vi) The State provides to the Secretary data (in such
form and manner as the Secretary may specify) regarding
the number of individuals described in clause (iii) with
respect to a State seeking approval of a waiver under
this subsection, to whom the State will make such services
available under such waiver.
Data. ‘‘(vii) The State agrees to provide to the Secretary,
not less frequently than annually, data for purposes of
paragraph (2)(E) (in such form and manner as the Secretary
may specify) regarding, with respect to each preceding year
in which a waiver under this subsection to provide home
or community-based services to individuals described in
clause (iii) was in effect—
‘‘(I) the cost (as such term is defined by the Sec-
retary) of such services furnished to individuals
described in clause (iii), broken down by type of service;
‘‘(II) with respect to each type of home or commu-
nity-based service provided under the waiver, the
length of time that such individuals have received such
service;
‘‘(III) a comparison between the data described
in subclause (I) and any comparable data available
with respect to individuals with respect to whom a
determination described in paragraph (1) has been
made and with respect to individuals receiving institu-
tional care under this title; and
‘‘(IV) the number of individuals who have received
home or community-based services under the waiver
during the preceding year.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 319
‘‘(C) LIMITATION ON PAYMENTS.—No payments made to
carry out this paragraph shall be used by a State to make
payments to a third party on behalf of an individual practitioner
for benefits such as health insurance, skills training, and other
benefits customary for employees, in the case of a class of
practitioners for which the program established under this
title is the primary source of revenue.’’.
(b) IMPLEMENTATION FUNDING.—
(1) IN GENERAL.—There are appropriated, out of any monies
in the Treasury not otherwise appropriated, to the Adminis-
trator of the Centers for Medicare & Medicaid Services—
(A) for fiscal year 2026, $50,000,000 for purposes of
carrying out the provisions of, and the amendments made
by, this section, to remain available until expended; and
(B) for fiscal year 2027, $100,000,000 for purposes of
making payments to States, subject to paragraph (2), to
support State systems to deliver home or community-based
services under section 1915(c) of the Social Security Act
(42 U.S.C. 1396n(c)) (as amended by this section) or under
section 1115 of such Act (42 U.S.C. 1315), to remain avail-
able until expended.
(2) PAYMENTS BASED ON STATE HCBS ELIGIBLE POPU-
LATION.—Payments to States from amounts made available
by paragraph (1)(B) shall be made, with respect to a State,
on the basis of the proportion of the population of the State
that is receiving home or community-based services under
section1915(c) of the Social Security Act (42 U.S.C. 1396n(c))
(as amended by this section) or under section 1115 of such
Act (42 U.S.C. 1315), as compared to all States.
CHAPTER 2—MEDICARE
Subchapter A—Strengthening Eligibility Requirements
SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVID-
UALS.
Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVID- 42 USC
UALS. 1395mmm.
‘‘(a) IN GENERAL.—Subject to subsection (b), an individual may
be entitled to, or enrolled for, benefits under this title only if
the individual is—
‘‘(1) a citizen or national of the United States;
‘‘(2) an alien who is lawfully admitted for permanent resi-
dence under the Immigration and Nationality Act;
‘‘(3) an alien who has been granted the status of Cuban
and Haitian entrant, as defined in section 501(e) of the Refugee
Education Assistance Act of 1980 (Public Law 96–422); or
‘‘(4) an individual who lawfully resides in the United States
in accordance with a Compact of Free Association referred
to in section 402(b)(2)(G) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996.
‘‘(b) APPLICATION TO INDIVIDUALS CURRENTLY ENTITLED TO OR
ENROLLED FOR BENEFITS.—
139 STAT. 320 PUBLIC LAW 119–21—JULY 4, 2025
Effective date. ‘‘(1) IN GENERAL.—In the case of an individual who is
Time period. entitled to, or enrolled for, benefits under this title as of the
date of the enactment of this section, subsection (a) shall apply
beginning on the date that is 18 months after such date of
enactment.
‘‘(2) REVIEW BY COMMISSIONER OF SOCIAL SECURITY.—
Deadline. ‘‘(A) IN GENERAL.—Not later than 1 year after the
date of the enactment of this section, the Commissioner
of Social Security shall complete a review of individuals
entitled to, or enrolled for, benefits under this title as
of such date of enactment for purposes of identifying
individuals not described in any of paragraphs (1) through
(4) of subsection (a).
Termination ‘‘(B) NOTICE.—The Commissioner of Social Security
date. shall notify each individual identified under the review
conducted under subparagraph (A) that such individual’s
entitlement to, or enrollment for, benefits under this title
will be terminated as of the date that is 18 months after
the date of the enactment of this section. Such notification
shall be made as soon as practicable after such identifica-
tion and in a manner designed to ensure such individual’s
comprehension of such notification.’’.
Subchapter B—Improving Services for Seniors
SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE
PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR EXCEP-
TIONAL CIRCUMSTANCES.
(a) IN GENERAL.—Section 1848(t) of the Social Security Act
(42 U.S.C. 1395w–4(t)) is amended—
(1) in the subsection heading, by striking ‘‘DURING 2021
THROUGH 2024’’;
(2) in paragraph (1)—
(A) in the matter preceding subparagraph (A), by
striking ‘‘and 2024’’ and inserting ‘‘2024, and 2026’’;
(B) in subparagraph (D), by striking ‘‘and’’ at the end;
(C) in subparagraph (E), by striking the period at
the end and inserting ‘‘; and’’; and
(D) by adding at the end the following new subpara-
graph:
‘‘(F) such services furnished on or after January 1,
2026, and before January 1, 2027, by 2.5 percent.’’; and
(3) in paragraph (2)(C)—
(A) in the subparagraph heading, by inserting ‘‘AND
2026’’ after ‘‘2024’’; and
(B) by striking ‘‘or 2024’’ each place it appears and
inserting ‘‘2024, or 2026’’.
(b) CONFORMING AMENDMENT.—Section 1848(c)(2)(B)(iv)(V) of
the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)(iv)(V)) is
amended by striking ‘‘or 2024’’ and inserting ‘‘2024, or 2026’’.
SEC. 71203. EXPANDING AND CLARIFYING THE EXCLUSION FOR
ORPHAN DRUGS UNDER THE DRUG PRICE NEGOTIATION
PROGRAM.
(a) IN GENERAL.—Section 1192(e) of the Social Security Act
(42 U.S.C. 1320f–1(e)) is amended—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 321
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ‘‘and (3)’’ and inserting ‘‘through (4)’’;
(2) in paragraph (3)(A)—
(A) by striking ‘‘only one rare disease or condition’’
and inserting ‘‘one or more rare diseases or conditions’’;
and
(B) by striking ‘‘such disease or condition’’ and inserting
‘‘one or more such rare diseases or conditions (as such
term is defined in section 526(a)(2) of the Federal Food,
Drug, and Cosmetic Act)’’; and
(3) by adding at the end the following new paragraph:
‘‘(4) TREATMENT OF FORMER ORPHAN DRUGS.—In the case Applicability.
of a drug or biological product that, as of the date of the
approval or licensure of such drug or biological product, is
a drug or biological product described in paragraph (3)(A),
paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as
if the reference to ‘the date of such approval’ or ‘the date
of such licensure’, respectively, were instead a reference to
‘the first day after the date of such approval for which such
drug is not a drug described in paragraph (3)(A)’ or ‘the first
day after the date of such licensure for which such biological
product is not a biological product described in paragraph
(3)(A)’, respectively.’’.
(b) APPLICATION.—The amendments made by subsection (a) 42 USC 1320f–1
shall apply with respect to initial price applicability years (as note.
defined in section 1191(b) of the Social Security Act (42 U.S.C.
1320f(b))) beginning on or after January 1, 2028.
CHAPTER 3—HEALTH TAX
Subchapter A—Improving Eligibility Criteria
SEC. 71301. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN
INDIVIDUALS.
(a) IN GENERAL.—Section 36B(e)(1) is amended by inserting
‘‘or, in the case of aliens who are lawfully present, are not eligible
aliens’’ after ‘‘individuals who are not lawfully present’’.
(b) ELIGIBLE ALIENS.—Section 36B(e)(2) is amended—
(1) by striking ‘‘For purposes of this section, an individual’’
and inserting ‘‘For purposes of this section—
‘‘(A) IN GENERAL.—An individual’’, and
(2) by adding at the end the following new subparagraph:
‘‘(B) ELIGIBLE ALIENS.—An individual who is an alien
and lawfully present shall be treated as an eligible alien
if such individual is, and is reasonably expected to be
for the entire period of enrollment for which the credit
under this section is being claimed—
‘‘(i) an alien who is lawfully admitted for perma-
nent residence under the Immigration and Nationality
Act (8 U.S.C. 1101 et seq.),
‘‘(ii) an alien who has been granted the status
of Cuban and Haitian entrant, as defined in section
501(e) of the Refugee Education Assistance Act of 1980
(Public Law 96–422); or
‘‘(iii) an individual who lawfully resides in the
United States in accordance with a Compact of Free
Association referred to in section 402(b)(2)(G) of the
139 STAT. 322 PUBLIC LAW 119–21—JULY 4, 2025
Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).’’.
(c) CONFORMING AMENDMENTS.—
(1) VERIFICATION OF INFORMATION.—Section 1411 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18081)
is amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘and section 36B(e)
of the Internal Revenue Code of 1986’’; and
(ii) in paragraph (2)—
(I) in subparagraph (A), by striking ‘‘and’’ at
the end;
(II) in subparagraph (B), by adding ‘‘and’’ at
the end; and
(III) by adding at the end the following new
subparagraph:
‘‘(C) in the case such individual is an alien lawfully
present in the United States, whether such individual is
an eligible alien (within the meaning of section 36B(e)(2)
of such Code);’’;
(B) in subsection (b)(3), by adding at the end the fol-
lowing new subparagraph:
‘‘(D) IMMIGRATION STATUS.—In the case the individual’s
eligibility is based on an attestation of the enrollee’s
immigration status, an attestation that such individual
is an eligible alien (within the meaning of 36B(e)(2) of
the Internal Revenue Code of 1986).’’; and
(C) in subsection (c)(2)(B)(ii), by adding at the end
the following new subclause:
‘‘(III) In the case of an individual described
in clause (i)(I) with respect to whom a premium
tax credit under section 36B of the Internal Rev-
enue Code of 1986 is being claimed, the attestation
that the individual is an eligible alien (within the
meaning of section 36B(e)(2) of such Code).’’.
(2) ADVANCE DETERMINATIONS.—Section 1412(d) of the
Patient Protection and Affordable Care Act (42 U.S.C. 18082(d))
is amended by inserting before the period at the end the fol-
lowing: ‘‘, or credits under section 36B of the Internal Revenue
Code of 1986 for aliens who are not eligible aliens (within
the meaning of section 36B(e)(2) of such Code)’’.
42 USC 18081 (3) EFFECTIVE DATE.—The amendments made by this sub-
note. section shall apply with respect to plan years beginning on
or after January 1, 2027.
(d) REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COV-
26 USC 5000A. ERAGE.—Section 5000A(d)(3) is amended by striking ‘‘an alien law-
fully present in the United States’’ and inserting ‘‘an eligible alien
(within the meaning of section 36B(e)(2))’’.
26 USC 36B note. (e) EFFECTIVE DATE.—The amendments made by this section
(other than the amendments made by subsection (c)) shall apply
to taxable years beginning after December 31, 2026.
SEC. 71302. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS
OF MEDICAID INELIGIBILITY DUE TO ALIEN STATUS.
(a) IN GENERAL.—Section 36B(c)(1) is amended by striking
subparagraph (B).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 323
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 36B note.
shall apply to taxable years beginning after December 31, 2025.
Subchapter B—Preventing Waste, Fraud, and Abuse
SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM
TAX CREDIT.
(a) IN GENERAL.—Section 36B(c) is amended by adding at the
end the following new paragraphs:
‘‘(5) EXCHANGE ENROLLMENT VERIFICATION REQUIREMENT.—
‘‘(A) IN GENERAL.—The term ‘coverage month’ shall
not include, with respect to any individual covered by a
qualified health plan enrolled in through an Exchange,
any month beginning before the Exchange verifies, using
applicable enrollment information that shall be provided
or verified by the applicant, such individual’s eligibility—
‘‘(i) to enroll in the plan through the Exchange,
and
‘‘(ii) for any advance payment under section 1412
of the Patient Protection and Affordable Care Act of
the credit allowed under this section.
‘‘(B) APPLICABLE ENROLLMENT INFORMATION.—For pur-
poses of subparagraph (A), applicable enrollment informa-
tion shall include affirmation of at least the following
information (to the extent relevant in determining eligi-
bility described in subparagraph (A)):
‘‘(i) Household income and family size.
‘‘(ii) Whether the individual is an eligible alien.
‘‘(iii) Any health coverage status or eligibility for
coverage.
‘‘(iv) Place of residence.
‘‘(v) Such other information as may be determined
by the Secretary (in consultation with the Secretary
of Health and Human Services) as necessary to the
verification prescribed under subparagraph (A).
‘‘(C) VERIFICATION OF PAST MONTHS.—In the case of
a month that begins before verification prescribed by
subparagraph (A), such month shall be treated as a cov-
erage month if the Exchange verifies for such month (using
applicable enrollment information that shall be provided
or verified by the applicant) such individual’s eligibility
to have so enrolled and for any such advance payment.
‘‘(D) EXCHANGE PARTICIPATION; COORDINATION WITH
OTHER PROCEDURES FOR DETERMINING ELIGIBILITY.—An
individual shall not, solely by reason of failing to meet
the requirements of this paragraph with respect to a month,
be treated for such month as ineligible to enroll in a quali-
fied health plan through an Exchange.
‘‘(E) WAIVER FOR CERTAIN SPECIAL ENROLLMENT
PERIODS.—The Secretary may waive the application of
subparagraph (A) in the case of an individual who enrolls
in a qualified health plan through an Exchange for 1 or
more months of the taxable year during a special enroll-
ment period provided by the Exchange on the basis of
a change in the family size of the individual.
‘‘(F) INFORMATION AND RELIANCE ON THIRD-PARTY
SOURCES.—An Exchange shall be permitted to use any
139 STAT. 324 PUBLIC LAW 119–21—JULY 4, 2025
data available to the Exchange and any reliable third-
party sources in collecting information for verification by
the applicant.
‘‘(6) EXCHANGE COMPLIANCE WITH FILING REQUIREMENTS.—
Applicability. The term ‘coverage month’ shall not include, with respect to
any individual covered by a qualified health plan enrolled in
through an Exchange, any month for which the Exchange does
not meet the requirements of section 155.305(f)(4)(iii) of title
45, Code of Federal Regulations (as published in the Federal
Register on June 25, 2025 (90 Fed. Reg. 27074), applied as
though it applied to all plan years after 2025), with respect
to the individual.’’.
(b) PRE-ENROLLMENT VERIFICATION PROCESS REQUIRED.—Sec-
tion 36B(c)(3)(A) is amended—
(1) by striking ‘‘HEALTH PLAN.—The term’’ and inserting
‘‘HEALTH PLAN.— ‘‘
‘‘(i) IN GENERAL.—The term’’, and
(2) by adding at the end the following new clause:
‘‘(ii) PRE-ENROLLMENT VERIFICATION PROCESS
REQUIRED.—Such term shall not include any plan
enrolled in through an Exchange, unless such
Exchange provides a process for pre-enrollment
verification through which any applicant may, begin-
ning not later than August 1, verify with the Exchange
the applicant’s household income and eligibility for
enrollment in such plan for plan years beginning in
the subsequent year.’’.
26 USC 36B note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2027.
SEC. 71304. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN
COVERAGE ENROLLED IN DURING SPECIAL ENROLL-
MENT PERIOD.
(a) IN GENERAL.—Section 36B(c)(3)(A), as amended by the pre-
ceding provisions of this Act, is amended by adding at the end
the following new clause:
‘‘(iii) EXCEPTION IN CASE OF CERTAIN SPECIAL
ENROLLMENT PERIODS.—Such term shall not include
any plan enrolled in during a special enrollment period
provided for by an Exchange—
‘‘(I) on the basis of the relationship of the
individual’s expected household income to such a
percentage of the poverty line (or such other
amount) as is prescribed by the Secretary of Health
and Human Services for purposes of such period,
and
‘‘(II) not in connection with the occurrence of
an event or change in circumstances specified by
the Secretary of Health and Human Services for
such purposes.’’.
26 USC 36B note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to plan years beginning after December
31, 2025.
SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE
PAYMENT OF PREMIUM TAX CREDIT.
(a) IN GENERAL.—Section 36B(f)(2) is amended by striking
subparagraph (B).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 325
(b) CONFORMING AMENDMENTS.—
(1) Section 36B(f)(2) is amended by striking ‘‘ADVANCE PAY-
MENTS.—’’ and all that follows through ‘‘If the advance pay-
ments’’ and inserting the following: ‘‘ADVANCE PAYMENTS.—If
the advance payments’’.
(2) Section 35(g)(12)(B)(ii) is amended by striking ‘‘then
section 36B(f)(2)(B) shall be applied by substituting the amount
determined under clause (i) for the amount determined under
section 36B(f)(2)(A)’’ and inserting ‘‘then the amount determined
under clause (i) shall be substituted for the amount determined
under section 36B(f)(2)’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 35 note.
shall apply to taxable years beginning after December 31, 2025.
Subchapter C—Enhancing Choice for Patients
SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE
OF DEDUCTIBLE FOR TELEHEALTH SERVICES.
(a) IN GENERAL.—Subparagraph (E) of section 223(c)(2) is
amended to read as follows:
‘‘(E) SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR
TELEHEALTH.—A plan shall not fail to be treated as a
high deductible health plan by reason of failing to have
a deductible for telehealth and other remote care services.’’.
(b) CERTAIN COVERAGE DISREGARDED.—Clause (ii) of section
223(c)(1)(B) is amended by striking ‘‘(in the case of months or
plan years to which paragraph (2)(E) applies)’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 223 note.
shall apply to plan years beginning after December 31, 2024.
SEC. 71307. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN
CONNECTION WITH HEALTH SAVINGS ACCOUNTS.
(a) IN GENERAL.—Section 223(c)(2) is amended by adding at
the end the following new subparagraph:
‘‘(H) BRONZE AND CATASTROPHIC PLANS TREATED AS
HIGH DEDUCTIBLE HEALTH PLANS.—The term ‘high deduct-
ible health plan’ shall include any plan which is—
‘‘(i) available as individual coverage through an
Exchange established under section 1311 or 1321 of
the Patient Protection and Affordable Care Act, and
‘‘(ii) described in subsection (d)(1)(A) or (e) of sec-
tion 1302 of such Act.’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 223 note.
shall apply to months beginning after December 31, 2025.
SEC. 71308. TREATMENT OF DIRECT PRIMARY CARE SERVICE
ARRANGEMENTS.
(a) IN GENERAL.—Section 223(c)(1) is amended by adding at
the end the following new subparagraph:
‘‘(E) TREATMENT OF DIRECT PRIMARY CARE SERVICE
ARRANGEMENTS.—
‘‘(i) IN GENERAL.—A direct primary care service
arrangement shall not be treated as a health plan
for purposes of subparagraph (A)(ii).
‘‘(ii) DIRECT PRIMARY CARE SERVICE ARRANGE-
MENT.—For purposes of this subparagraph—
‘‘(I) IN GENERAL.—The term ‘direct primary Definition.
care service arrangement’ means, with respect to
139 STAT. 326 PUBLIC LAW 119–21—JULY 4, 2025
any individual, an arrangement under which such
individual is provided medical care (as defined in
section 213(d)) consisting solely of primary care
services provided by primary care practitioners (as
defined in section 1833(x)(2)(A) of the Social Secu-
rity Act, determined without regard to clause (ii)
thereof), if the sole compensation for such care
is a fixed periodic fee.
‘‘(II) LIMITATION.—With respect to any indi-
vidual for any month, such term shall not include
any arrangement if the aggregate fees for all direct
primary care service arrangements (determined
without regard to this subclause) with respect to
such individual for such month exceed $150 (twice
such dollar amount in the case of an individual
with any direct primary care service arrangement
(as so determined) that covers more than one indi-
vidual).
‘‘(iii) CERTAIN SERVICES SPECIFICALLY EXCLUDED
FROM TREATMENT AS PRIMARY CARE SERVICES.—For
purposes of this subparagraph, the term ‘primary care
services’ shall not include—
‘‘(I) procedures that require the use of general
anesthesia,
‘‘(II) prescription drugs (other than vaccines),
and
‘‘(III) laboratory services not typically adminis-
tered in an ambulatory primary care setting.
Regulations. The Secretary, after consultation with the Secretary
Guidance. of Health and Human Services, shall issue regulations
or other guidance regarding the application of this
clause.’’.
(b) DIRECT PRIMARY CARE SERVICE ARRANGEMENT FEES
TREATED AS MEDICAL EXPENSES.—Section 223(d)(2)(C) is amended
by striking ‘‘or’’ at the end of clause (iii), by striking the period
at the end of clause (iv) and inserting ‘‘, or’’, and by adding at
the end the following new clause:
‘‘(v) any direct primary care service arrangement.’’.
(c) INFLATION ADJUSTMENT.—Section 223(g)(1) is amended—
(1) by striking ‘‘in subsections (b)(2) and (c)(2)(A)’’ and
inserting ‘‘in subsections (b)(2), (c)(2)(A), and in the case of
taxable years beginning after 2026, (c)(1)(E)(ii)(II)’’,
(2) in subparagraph (B), by striking ‘‘clause (ii)’’ in clause
(i) and inserting ‘‘clauses (ii) and (iii)’’, by striking ‘‘and’’ at
the end of clause (i), by striking the period at the end of
clause (ii) and inserting ‘‘, and’’, and by inserting after clause
(ii) the following new clause:
‘‘(iii) in the case of the dollar amount in subsection
(c)(1)(E)(ii)(II), ‘calendar year 2025’.’’, and
(3) by inserting ‘‘, (c)(1)(E)(ii)(II),’’ after ‘‘(b)(2)’’ in the last
sentence.
26 USC 223 note. (d) EFFECTIVE DATE.—The amendments made by this section
shall apply to months beginning after December 31, 2025.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 327
CHAPTER 4—PROTECTING RURAL HOSPITALS AND
PROVIDERS
SEC. 71401. RURAL HEALTH TRANSFORMATION PROGRAM. Time periods.
(a) IN GENERAL.—Section 2105 of the Social Security Act (42
U.S.C. 1397ee) is amended by adding at the end the following
new subsection:
‘‘(h) RURAL HEALTH TRANSFORMATION PROGRAM.—
‘‘(1) APPROPRIATION.—
‘‘(A) IN GENERAL.—There are appropriated, out of any
money in the Treasury not otherwise appropriated, to the
Administrator of the Centers for Medicare & Medicaid Serv-
ices (in this subsection referred to as the ‘Administrator’),
to provide allotments to States for purposes of carrying
out the activities described in paragraph (6)—
‘‘(i) $10,000,000,000 for fiscal year 2026;
‘‘(ii) $10,000,000,000 for fiscal year 2027;
‘‘(iii) $10,000,000,000 for fiscal year 2028;
‘‘(iv) $10,000,000,000 for fiscal year 2029; and
‘‘(v) $10,000,000,000 for fiscal year 2030.
‘‘(B) UNEXPENDED OR UNOBLIGATED FUNDS.—
‘‘(i) IN GENERAL.—Any amounts appropriated Effective date.
under subparagraph (A) that are unexpended or unobli-
gated as of October 1, 2032, shall be returned to the
Treasury of the United States.
‘‘(ii) REDISTRIBUTION OF UNEXPENDED OR UNOBLI-
GATED FUNDS.—In carrying out subparagraph (A), the Deadline.
Administrator shall, not later than March 31, 2028, Determination.
and annually thereafter through March 31, 2032, deter-
mine the amount of funds, if any, that are available
under such subparagraph for a previous fiscal year,
are unexpended or unobligated with respect to such
fiscal year, and will not be available to a State in
the current fiscal year, pursuant to clause (iii).
‘‘(iii) AVAILABILITY OF FUNDS.—
‘‘(I) IN GENERAL.—Amounts allotted to a State
under this subsection for a year shall be available
for expenditure by the State through the end of
the fiscal year following the fiscal year in which
such amounts are allotted.
‘‘(II) AVAILABILITY OF AMOUNTS REDISTRIB-
UTED.—Amounts redistributed to a State under
clause (ii) with respect to a fiscal year shall be
available for expenditure by the State through the
end of the fiscal year following the fiscal year
in which such amounts are redistributed (except
in the case of amounts redistributed in fiscal year
2032 which shall only be available for expenditure
through September 30, 2032).
‘‘(iv) MISUSE OF FUNDS.—If the Administrator Determination.
determines that a State is not using amounts allotted
or redistributed to the State under this subsection
in a manner consistent with the description provided
by the State in its application approved under para-
graph (2), the Administrator may withhold payments
to, or reduce payments to, or recover previous pay-
ments from, the State under this subsection as the
139 STAT. 328 PUBLIC LAW 119–21—JULY 4, 2025
Administrator deems appropriate, and any amounts
so withheld, or that remain after any such reduction,
or so recovered, shall be returned to the Treasury
of the United States.
‘‘(2) APPLICATION.—
Deadline. ‘‘(A) IN GENERAL.—To be eligible for an allotment under
this subsection, a State shall submit to the Administrator
during an application submission period to be specified
by the Administrator (but that ends not later than
December 31, 2025) an application in such form and
manner as the Administrator may specify, that includes—
Transformation ‘‘(i) a detailed rural health transformation plan—
plan. ‘‘(I) to improve access to hospitals, other health
care providers, and health care items and services
furnished to rural residents of the State;
‘‘(II) to improve health care outcomes of rural
residents of the State;
‘‘(III) to prioritize the use of new and emerging
technologies that emphasize prevention and
chronic disease management;
‘‘(IV) to initiate, foster, and strengthen local
and regional strategic partnerships between rural
hospitals and other health care providers in order
to promote measurable quality improvement,
increase financial stability, maximize economies
of scale, and share best practices in care delivery;
‘‘(V) to enhance economic opportunity for, and
the supply of, health care clinicians through
enhanced recruitment and training;
‘‘(VI) to prioritize data and technology driven
solutions that help rural hospitals and other rural
health care providers furnish high-quality health
care services as close to a patient’s home as is
possible;
‘‘(VII) that outlines strategies to manage long-
term financial solvency and operating models of
rural hospitals in the State; and
‘‘(VIII) that identifies specific causes driving
the accelerating rate of stand-alone rural hospitals
becoming at risk of closure, conversion, or service
reduction;
Certification. ‘‘(ii) a certification that none of the amounts pro-
vided under this subsection shall be used by the State
for an expenditure that is attributable to an intergov-
ernmental transfer, certified public expenditure, or any
other expenditure to finance the non-Federal share
of expenditures required under any provision of law,
including under the State plan established under this
title, the State plan established under title XIX, or
under a waiver of such plans; and
‘‘(iii) such other information as the Administrator
may require.
‘‘(B) DEADLINE FOR APPROVAL.—Not later than
December 31, 2025, the Administrator shall approve or
deny all applications submitted for an allotment under
this subsection.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 329
‘‘(C) ONE-TIME APPLICATION.—If an application of a
State for an allotment under this subsection is approved
by the Administrator, the State shall be eligible for an
allotment under this subsection for each of fiscal years
2026 through 2030, except as provided in paragraph
(1)(B)(iv).
‘‘(D) ELIGIBILITY.—Only the 50 States shall be eligible
for an allotment under this subsection and all references
in this subsection to a State shall be treated as only refer-
ring to the 50 States.
‘‘(3) ALLOTMENTS.—
‘‘(A) IN GENERAL.—For each of fiscal years 2026 Determination.
through 2030, the Administrator shall determine under
subparagraph (B) the amount of the allotment for such
fiscal year for each State with an approved application
under this subsection.
‘‘(B) AMOUNT DETERMINED.—Subject to subparagraph
(C), from the amounts appropriated under paragraph (1)(A)
for each of fiscal years 2026 through 2030, the Adminis-
trator shall allot—
‘‘(i) 50 percent of the amounts appropriated for
each such fiscal year equally among all States with
an approved application under this subsection; and
‘‘(ii) 50 percent of the amounts appropriated for
each such fiscal year among all such States in an
amount to be determined by the Administrator in
accordance with subparagraph (C).
‘‘(C) REQUIREMENTS.—In determining the amount to Determination.
be allotted to a State under clause (ii) of subparagraph
(B) for a fiscal year, the Administrator shall—
‘‘(i) ensure that not less than 1⁄4 of the States
with an approved application under this subsection
for a fiscal year are allotted funds from amounts that
are to be allotted under clause (ii) of such subpara-
graph; and
‘‘(ii) consider—
‘‘(I) the percentage of the State population that
is located in a rural census tract of a metropolitan
statistical area (as determined under the most
recent modification of the Goldsmith Modification,
originally published in the Federal Register on
February 27, 1992 (57 Fed. Reg. 6725));
‘‘(II) the proportion of rural health facilities
(as defined in subparagraph (D)) in the State rel-
ative to the number of rural health facilities
nationwide;
‘‘(III) the situation of hospitals in the State,
as described in section 1902(a)(13)(A)(iv); and
‘‘(IV) any other factors that the Administrator
determines appropriate.
‘‘(D) RURAL HEALTH FACILITY DEFINED.—For the pur-
poses of subparagraph (C)(ii), the term ‘rural health facility’
means the following:
‘‘(i) A subsection (d) hospital (as defined in para-
graph (1)(B) of section 1886(d)) that—
‘‘(I) is located in a rural area (as defined in
paragraph (2)(D) of such section);
139 STAT. 330 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(II) is treated as being located in a rural
area pursuant to paragraph (8)(E) of such section;
or
‘‘(III) is located in a rural census tract of a
metropolitan statistical area (as determined under
the most recent modification of the Goldsmith
Modification, originally published in the Federal
Register on February 27, 1992 (57 Fed. Reg. 6725)).
‘‘(ii) A critical access hospital (as defined in section
1861(mm)(1)).
‘‘(iii) A sole community hospital (as defined in sec-
tion 1886(d)(5)(D)(iii)).
‘‘(iv) A Medicare-dependent, small rural hospital
(as defined in section 1886(d)(5)(G)(iv)).
‘‘(v) A low-volume hospital (as defined in section
1886(d)(12)(C)).
‘‘(vi) A rural emergency hospital (as defined in
section 1861(kkk)(2)).
‘‘(vii) A rural health clinic (as defined in section
1861(aa)(2)).
‘‘(viii) A Federally qualified health center (as
defined in section 1861(aa)(4)).
‘‘(ix) A community mental health center (as defined
in section 1861(ff)(3)(B)).
‘‘(x) A health center that is receiving a grant under
section 330 of the Public Health Service Act.
‘‘(xi) An opioid treatment program (as defined in
section 1861(jjj)(2)) that is located in a rural census
tract of a metropolitan statistical area (as determined
under the most recent modification of the Goldsmith
Modification, originally published in the Federal Reg-
ister on February 27, 1992 (57 Fed. Reg. 6725)).
‘‘(xii) A certified community behavioral health
clinic (as defined in section 1905(jj)(2)) that is located
in a rural census tract of a metropolitan statistical
area (as determined under the most recent modification
of the Goldsmith Modification, originally published in
the Federal Register on February 27, 1992 (57 Fed.
Reg. 6725)).
‘‘(4) NO MATCHING PAYMENT.—A State approved for an allot-
ment under this subsection for a fiscal year shall not be
required to provide any matching funds as a condition for
receiving payments from the allotment.
‘‘(5) TERMS AND CONDITIONS.—The Administrator shall
specify such terms and conditions for allotments to States pro-
vided under this subsection as the Administrator deems appro-
priate, including the following:
‘‘(A) Each State shall submit to the Administrator (at
a time, and in a form and manner, specified by the Adminis-
trator)—
Plan. ‘‘(i) a plan for the State to use its allotment to
carry out 3 or more of the activities described in para-
graph (6); and
Reports. ‘‘(ii) annual reports on the use of allotments,
including such additional information as the Adminis-
trator determines appropriate.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 331
‘‘(B) Not more than 10 percent of the amount allotted
to a State for a fiscal year may be used by the State
for administrative expenses.
‘‘(6) USE OF FUNDS.—Amounts allotted to a State under
this subsection shall be used for 3 or more of the following
health-related activities:
‘‘(A) Promoting evidence-based, measurable interven-
tions to improve prevention and chronic disease manage-
ment.
‘‘(B) Providing payments to health care providers for
the provision of health care items or services, as specified
by the Administrator.
‘‘(C) Promoting consumer-facing, technology-driven
solutions for the prevention and management of chronic
diseases.
‘‘(D) Providing training and technical assistance for
the development and adoption of technology-enabled solu-
tions that improve care delivery in rural hospitals,
including remote monitoring, robotics, artificial intel-
ligence, and other advanced technologies.
‘‘(E) Recruiting and retaining clinical workforce talent
to rural areas, with commitments to serve rural commu-
nities for a minimum of 5 years.
‘‘(F) Providing technical assistance, software, and hard-
ware for significant information technology advances
designed to improve efficiency, enhance cybersecurity capa-
bility development, and improve patient health outcomes.
‘‘(G) Assisting rural communities to right size their
health care delivery systems by identifying needed
preventative, ambulatory, pre-hospital, emergency, acute
inpatient care, outpatient care, and post-acute care service
lines.
‘‘(H) Supporting access to opioid use disorder treatment
services (as defined in section 1861(jjj)(1)), other substance
use disorder treatment services, and mental health serv-
ices.
‘‘(I) Developing projects that support innovative models
of care that include value-based care arrangements and
alternative payment models, as appropriate.
‘‘(J) Additional uses designed to promote sustainable Determination.
access to high quality rural health care services, as deter-
mined by the Administrator.
‘‘(7) EXEMPTIONS.—Paragraphs (2), (3), (5), (6), (8), (10),
(11), and (12) of subsection (c) do not apply to payments under
this subsection.
‘‘(8) REVIEW.—There shall be no administrative or judicial
review under section 1116 or otherwise of amounts allotted
or redistributed to States under this subsection, payments to
States withheld or reduced under this subsection, or previous
payments recovered from States under this subsection.
‘‘(9) HEALTH CARE PROVIDER DEFINED.—For purposes of
this subsection, the term ‘health care provider’ means a provider
of services or supplier who is enrolled under this title, title
XVIII, or title XIX.’’.
(b) CONFORMING AMENDMENTS.—Title XXI of the Social Secu-
rity Act (42 U.S.C. 1397aa) is amended—
(1) in section 2101—
139 STAT. 332 PUBLIC LAW 119–21—JULY 4, 2025
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ‘‘The purpose’’ and inserting ‘‘Except with
respect to the rural health transformation program estab-
lished in section 2105(h), the purpose’’; and
(B) in subsection (b), in the matter preceding paragraph
(1), by inserting ‘‘subsection (a) or (g) of’’ before ‘‘section
2105’’;
42 USC 1397ee. (2) in section 2105(c)(1), by striking ‘‘and may not include’’
and inserting ‘‘or to carry out the rural health transformation
program established in subsection (h) and, except in the case
of amounts made available under subsection (h), may not
include’’; and
42 USC 1397ff. (3) in section 2106(a)(1), by inserting ‘‘subsection (a) or
(g) of’’ before ‘‘section 2105’’.
42 USC 1397aa (c) IMPLEMENTATION.—The Administrator of the Centers for
note. Medicare & Medicaid Services shall implement this section,
including the amendments made by this section, by program
instruction or other forms of program guidance.
(d) IMPLEMENTATION FUNDING.—For the purposes of carrying
out the provisions of, and the amendments made by, this section,
there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $200,000,000 for fiscal year 2025,
to remain available until expended.
Subtitle C—Increase in Debt Limit
31 USC 3101 SEC. 72001. MODIFICATION OF LIMITATION ON THE PUBLIC DEBT.
note.
The limitation under section 3101(b) of title 31, United States
Code, as most recently increased by section 401(b) of Public Law
118–5 (31 U.S.C. 3101 note), is increased by $5,000,000,000,000.
Subtitle D—Unemployment
26 USC 3304 SEC. 73001. ENDING UNEMPLOYMENT PAYMENTS TO JOBLESS
note. MILLIONAIRES.
(a) PROHIBITION ON USE OF FEDERAL FUNDS.—
(1) IN GENERAL.—No Federal funds may be used—
(A) to make payments of unemployment compensation
benefits under an unemployment compensation program
of the United States in a year to an individual whose
wages during the individual’s base period are equal to
or exceed $1,000,000; or
(B) for any administrative costs associated with making
payments described in subparagraph (A).
(2) COMPLIANCE.—
Procedure. (A) SELF-CERTIFICATION.—Any application for
unemployment compensation under an unemployment com-
pensation program of the United States shall include a
form or procedure for an individual applicant to certify
that such individual’s wages during the individual’s base
period do not equal or exceed $1,000,000.
(B) VERIFICATION.—Each State agency that is respon-
sible for administering any unemployment compensation
program of the United States shall utilize available systems
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 333
to verify wage eligibility by assessing claimant income to
the degree possible.
(3) RECOVERY OF OVERPAYMENTS.—Each State agency that
is responsible for administering any unemployment compensa-
tion program of the United States shall require individuals
who have received amounts of unemployment compensation
under such a program to which they were not entitled to
repay such amounts.
(4) EFFECTIVE DATE.—The prohibition under paragraph (1)
shall apply to weeks of unemployment beginning on or after
the date of the enactment of this Act.
(b) UNEMPLOYMENT COMPENSATION PROGRAM OF THE UNITED
STATES DEFINED.—In this section, the term ‘‘unemployment com-
pensation program of the United States’’ means—
(1) unemployment compensation for Federal civilian
employees under subchapter I of chapter 85 of title 5, United
States Code;
(2) unemployment compensation for ex-servicemembers
under subchapter II of chapter 85 of title 5, United States
Code;
(3) extended benefits under the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note);
(4) any Federal temporary extension of unemployment com-
pensation;
(5) any Federal program that increases the weekly amount
of unemployment compensation payable to individuals; and
(6) any other Federal program providing for the payment
of unemployment compensation, as determined by the Secretary
of Labor.
TITLE VIII—COMMITTEE ON HEALTH,
EDUCATION, LABOR, AND PENSIONS
Subtitle A—Exemption of Certain Assets
SEC. 80001. EXEMPTION OF CERTAIN ASSETS.
(a) EXEMPTION OF CERTAIN ASSETS.—Section 480(f)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended—
(1) by striking ‘‘net value of the’’ and inserting the following:
‘‘net value of—
‘‘(A) the’’;
(2) by striking the period at the end and inserting a semi-
colon; and
(3) by adding at the end the following:
‘‘(B) a family farm on which the family resides;
‘‘(C) a small business with not more than 100 full-
time or full-time equivalent employees (or any part of such
a small business) that is owned and controlled by the
family; or
‘‘(D) a commercial fishing business and related
expenses, including fishing vessels and permits owned and
controlled by the family.’’.
(b) EFFECTIVE DATE AND APPLICATION.—The amendments made Time period.
by subsection (a) shall take effect on July 1, 2026, and shall apply 20 USC 1087vv
note.
139 STAT. 334 PUBLIC LAW 119–21—JULY 4, 2025
with respect to award year 2026–2027 and each subsequent award
year, as determined under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
Subtitle B—Loan Limits
Effective dates. SEC. 81001. ESTABLISHMENT OF LOAN LIMITS FOR GRADUATE AND
PROFESSIONAL STUDENTS AND PARENT BORROWERS;
TERMINATION OF GRADUATE AND PROFESSIONAL PLUS
LOANS.
Section 455(a) of the Higher Education Act of 1965 (20 U.S.C.
1087e(a)) is amended—
(1) in paragraph (3)—
(A) in the paragraph heading, by inserting ‘‘AND FED-
ERAL DIRECT PLUS LOANS’’ after ‘‘LOANS’’;
(B) by striking subparagraph (A) and inserting the
following:
‘‘(A) TERMINATION OF AUTHORITY TO MAKE INTEREST
SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STU-
DENTS.—Subject to subparagraph (B), and notwithstanding
any provision of this part or part B—
‘‘(i) for any period of instruction beginning on or
after July 1, 2012, a graduate or professional student
shall not be eligible to receive a Federal Direct Stafford
loan under this part; and
Time period. ‘‘(ii) for any period of instruction beginning on
July 1, 2012, and ending on June 30, 2026, the max-
imum annual amount of Federal Direct Unsubsidized
Stafford loans such a student may borrow in any aca-
demic year (as defined in section 481(a)(2)) or its
equivalent shall be the maximum annual amount for
such student determined under section 428H, plus an
amount equal to the amount of Federal Direct Stafford
loans the student would have received in the absence
of this subparagraph.’’; and
(C) by adding at the end the following:
‘‘(C) TERMINATION OF AUTHORITY TO MAKE FEDERAL
DIRECT PLUS LOANS TO GRADUATE AND PROFESSIONAL STU-
DENTS.—Subject to paragraph (8) and notwithstanding any
provision of this part or part B, for any period of instruction
beginning on or after July 1, 2026, a graduate or profes-
sional student shall not be eligible to receive a Federal
Direct PLUS Loan under this part.’’; and
(2) by adding at the end the following:
‘‘(4) GRADUATE AND PROFESSIONAL ANNUAL AND AGGREGATE
LIMITS FOR FEDERAL DIRECT UNSUBSIDIZED STAFFORD LOANS
BEGINNING JULY 1, 2026.—
‘‘(A) ANNUAL LIMITS BEGINNING JULY 1, 2026.—Subject
to paragraphs (7)(A) and (8), beginning on July 1, 2026,
the maximum annual amount of Federal Direct Unsub-
sidized Stafford loans—
‘‘(i) a graduate student, who is not a professional
student, may borrow in any academic year or its
equivalent shall be $20,500; and
‘‘(ii) a professional student may borrow in any
academic year or its equivalent shall be $50,000.
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 335
‘‘(B) AGGREGATE LIMITS.—Subject to paragraphs (6),
(7)(A), and (8), beginning on July 1, 2026, the maximum
aggregate amount of Federal Direct Unsubsidized Stafford
loans, in addition to the amount borrowed for under-
graduate education, that—
‘‘(i) a graduate student—
‘‘(I) who is not (and has not been) a profes-
sional student, may borrow for programs of study
described in subparagraph (C)(i) shall be $100,000;
or
‘‘(II) who is (or has been) a professional stu-
dent, may borrow for programs of study described
in subparagraph (C)(i) shall be an amount equal
to—
‘‘(aa) $200,000; minus
‘‘(bb) the amount such student borrowed
for programs of study described in subpara-
graph (C)(ii); and
‘‘(ii) a professional student—
‘‘(I) who is not (and has not been) a graduate
student, may borrow for programs of study
described in subparagraph (C)(ii) shall be
$200,000; or
‘‘(II) who is (or has been) a graduate student,
may borrow for programs of study described in
subparagraph (C)(ii) shall be an amount equal to—
‘‘(aa) $200,000; minus
‘‘(bb) the amount such student borrowed
for programs of study described in subpara-
graph (C)(i).
‘‘(C) DEFINITIONS.—
‘‘(i) GRADUATE STUDENT.—The term ‘graduate stu-
dent’ means a student enrolled in a program of study
that awards a graduate credential (other than a profes-
sional degree) upon completion of the program.
‘‘(ii) PROFESSIONAL STUDENT.—In this paragraph,
the term ‘professional student’ means a student
enrolled in a program of study that awards a profes-
sional degree, as defined under section 668.2 of title
34, Code of Federal Regulations (as in effect on the
date of enactment of this paragraph), upon completion
of the program.
‘‘(5) PARENT BORROWER ANNUAL AND AGGREGATE LIMITS
FOR FEDERAL DIRECT PLUS LOANS BEGINNING JULY 1, 2026.—
‘‘(A) ANNUAL LIMITS.—Subject to paragraph (8) and
notwithstanding any provision of this part or part B, begin-
ning on July 1, 2026, for each dependent student, the
total maximum annual amount of Federal Direct PLUS
loans that may be borrowed on behalf of that dependent
student by all parents of that dependent student shall
be $20,000.
‘‘(B) AGGREGATE LIMITS.—Subject to paragraph (8) and
notwithstanding any provision of this part or part B, begin-
ning on July 1, 2026, for each dependent student, the
total maximum aggregate amount of Federal Direct PLUS
loans that may be borrowed on behalf of that dependent
student by all parents of that dependent student shall
139 STAT. 336 PUBLIC LAW 119–21—JULY 4, 2025
be $65,000, without regard to any amounts repaid, forgiven,
canceled, or otherwise discharged on any such loan.
‘‘(6) LIFETIME MAXIMUM AGGREGATE AMOUNT FOR ALL STU-
DENTS.—Subject to paragraph (8) and notwithstanding any
provision of this part or part B, beginning on July 1, 2026,
the maximum aggregate amount of loans made, insured, or
guaranteed under this title that a student may borrow (other
than a Federal Direct PLUS loan, or loan under section 428B,
made to the student as a parent borrower on behalf of a
dependent student) shall be $257,500, without regard to any
amounts repaid, forgiven, canceled, or otherwise discharged
on any such loan.
‘‘(7) ADDITIONAL RULES REGARDING ANNUAL LOAN LIMITS.—
Reduction. ‘‘(A) LESS THAN FULL-TIME ENROLLMENT.—Notwith-
Publication. standing any provision of this part or part B, in any case
in which a student is enrolled in a program of study of
an institution of higher education on less than a full-
time basis during any academic year, the amount of a
loan that student may borrow for an academic year or
its equivalent shall be reduced in direct proportion to the
degree to which that student is not so enrolled on a full-
time basis, rounded to the nearest whole percentage point,
as provided in a schedule of reductions published by the
Secretary computed for purposes of this subparagraph.
‘‘(B) INSTITUTIONALLY DETERMINED LIMITS.—Notwith-
standing the annual loan limits established under this
section and, for undergraduate students, under this part
and part B, beginning on July 1, 2026, an institution of
higher education (at the discretion of a financial aid
administrator at the institution) may limit the total amount
of loans made under this part for a program of study
for an academic year that a student may borrow, and
that a parent may borrow on behalf of such student, as
long as any such limit is applied consistently to all students
enrolled in such program of study.
‘‘(8) INTERIM EXCEPTION FOR CERTAIN STUDENTS.—
Deadline. ‘‘(A) APPLICATION OF PRIOR LIMITS.—Paragraphs (3)(C),
(4), (5), and (6) shall not apply, and paragraph (3)(A)(ii)
shall apply as such paragraph was in effect for periods
of instruction ending before June 30, 2026, during the
expected time to credential described in subparagraph (B),
with respect to an individual who, as of June 30, 2026—
‘‘(i) is enrolled in a program of study at an institu-
tion of higher education; and
‘‘(ii) has received a loan (or on whose behalf a
loan was made) under this part for such program of
study.
‘‘(B) EXPECTED TIME TO CREDENTIAL.—For purposes of
this paragraph, the expected time to credential of an indi-
vidual shall be equal to the lesser of—
‘‘(i) three academic years; or
‘‘(ii) the period determined by calculating the dif-
ference between—
‘‘(I) the program length for the program of
study in which the individual is enrolled; and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 337
‘‘(II) the period of such program of study that
such individual has completed as of the date of
the determination under this subparagraph.
‘‘(C) DEFINITION OF PROGRAM LENGTH.—In this para-
graph, the term ‘program length’ means the minimum
amount of time in weeks, months, or years that is specified
in the catalog, marketing materials, or other official
publications of an institution of higher education for a
full-time student to complete the requirements for a specific
program of study.’’.
Subtitle C—Loan Repayment
SEC. 82001. LOAN REPAYMENT.
(a) TRANSITION TO INCOME-BASED REPAYMENT PLANS.— 20 USC 1087e
(1) SELECTION.—The Secretary of Education shall take such note.
steps as may be necessary to ensure that before July 1, 2028, Deadline.
each borrower who has one or more loans that are in a repay-
ment status in accordance with, or an administrative forbear-
ance associated with, an income contingent repayment plan
authorized under section 455(e) of the Higher Education Act
of 1965 (referred to in this subsection as ‘‘covered income contin-
gent loans’’) selects one of the following income-based repay-
ment plans that is otherwise applicable, and for which that
borrower is otherwise eligible, for the repayment of the covered
income contingent loans of the borrower:
(A) The Repayment Assistance Plan under section
455(q) of the Higher Education Act of 1965.
(B) The income-based repayment plan under section
493C of the Higher Education Act of 1965.
(C) Any other repayment plan as authorized under
section 455(d)(1) of the Higher Education Act of 1965.
(2) COMMENCEMENT OF NEW REPAYMENT PLAN.—Beginning
on July 1, 2028, a borrower described in paragraph (1) shall
begin repaying the covered income contingent loans of the
borrower in accordance with the repayment plan selected under
paragraph (1), unless the borrower chooses to begin repaying
in accordance with the repayment plan selected under para-
graph (1) before such date.
(3) FAILURE TO SELECT.—In the case of a borrower described
in paragraph (1) who fails to select a repayment plan in accord-
ance with such paragraph, the Secretary of Education shall—
(A) enroll the covered income contingent loans of such
borrower in—
(i) the Repayment Assistance Plan under section
455(q) of the Higher Education Act of 1965 with respect
to loans that are eligible for the Repayment Assistance
Plan under such subsection; or
(ii) the income-based repayment plan under section
493C of such Act, with respect to loans that are not
eligible for the Repayment Assistance Plan; and
(B) require the borrower to begin repaying covered Effective date.
income contingent loans according to the plans under
subparagraph (A) on July 1, 2028.
(b) REPAYMENT PLANS.—Section 455(d) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(d)) is amended—
139 STAT. 338 PUBLIC LAW 119–21—JULY 4, 2025
(1) in paragraph (1)—
(A) in the matter preceding subparagraph (A), by
inserting ‘‘before July 1, 2026, who has not received a
loan made under this part on or after July 1, 2026,’’ after
‘‘made under this part’’;
(B) in subparagraph (D)—
(i) by inserting ‘‘before June 30, 2028,’’ before ‘‘an
income contingent repayment plan’’; and
(ii) by striking ‘‘and’’ after the semicolon;
(C) in subparagraph (E)—
(i) by striking ‘‘that enables borrowers who have
a partial financial hardship to make a lower monthly
payment’’;
(ii) by striking ‘‘a Federal Direct Consolidation
Loan, if the proceeds of such loan were used to dis-
charge the liability on such Federal Direct PLUS Loan
or a loan under section 428B made on behalf of a
dependent student’’ and inserting ‘‘an excepted Consoli-
dation Loan (as defined in section 493C(a)(2))’’; and
(iii) by striking the period at the end and inserting
‘‘; and’’; and
(D) by adding at the end the following:
Effective date. ‘‘(F) beginning on July 1, 2026, the income-based
Repayment Assistance Plan under subsection (q), provided
that—
‘‘(i) such Plan shall not be available for the repay-
ment of excepted loans (as defined in paragraph (7)(E));
and
‘‘(ii) the borrower is required to pay each out-
standing loan of the borrower made under this part
under such Repayment Assistance Plan, except that
a borrower of an excepted loan (as defined in paragraph
(7)(E)) may repay the excepted loan separately from
other loans under this part obtained by the borrower.’’;
(2) in paragraph (5), by amending subparagraph (B) to
read as follows:
‘‘(B) repay the loan pursuant to an income-based repay-
ment plan under subsection (q) or section 493C, as
applicable.’’; and
(3) by adding at the end the following:
‘‘(6) TERMINATION AND LIMITATION OF REPAYMENT
AUTHORITY.—
‘‘(A) SUNSET OF REPAYMENT PLANS AVAILABLE BEFORE
Applicability. JULY 1, 2026.—Paragraphs (1) through (4) of this subsection
shall only apply to loans made under this part before
July 1, 2026.
‘‘(B) PROHIBITIONS.—The Secretary may not, for any
loan made under this part on or after July 1, 2026—
‘‘(i) authorize a borrower of such a loan to repay
such loan pursuant to a repayment plan that is not
described in paragraph (7)(A); or
‘‘(ii) carry out or modify a repayment plan that
is not described in such paragraph.
Effective date. ‘‘(7) REPAYMENT PLANS FOR LOANS MADE ON OR AFTER JULY
1, 2026.—
‘‘(A) DESIGN AND SELECTION.—Beginning on July 1,
2026, the Secretary shall offer a borrower of a loan made
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 339
under this part on or after such date (including such a
borrower who also has a loan made under this part before
such date) two plans for repayment of the borrower’s loans
under this part, including principal and interest on such
loans. The borrower shall be entitled to accelerate, without
penalty, repayment on such loans. The borrower may
choose—
‘‘(i) a standard repayment plan—
‘‘(I) with a fixed monthly repayment amount
paid over a fixed period of time equal to the
applicable period determined under subclause (II);
and
‘‘(II) with the applicable period of time for Time periods.
repayment determined based on the total out-
standing principal of all loans of the borrower
made under this part before, on, or after July
1, 2026, at the time the borrower is entering repay-
ment under such plan, as follows—
‘‘(aa) for a borrower with total outstanding
principal of less than $25,000, a period of 10
years;
‘‘(bb) for a borrower with total outstanding
principal of not less than $25,000 and less
than $50,000, a period of 15 years;
‘‘(cc) for a borrower with total outstanding
principal of not less than $50,000 and less
than $100,000, a period of 20 years; and
‘‘(dd) for a borrower with total outstanding
principal of $100,000 or more, a period of 25
years; or
‘‘(ii) the income-based Repayment Assistance Plan
under subsection (q).
‘‘(B) SELECTION BY SECRETARY.—If a borrower of a loan
made under this part on or after July 1, 2026, does not
select a repayment plan described in subparagraph (A),
the Secretary shall provide the borrower with the standard
repayment plan described in subparagraph (A)(i).
‘‘(C) SELECTION APPLIES TO ALL OUTSTANDING LOANS.—
A borrower is required to pay each outstanding loan of
the borrower made under this part under the same selected
repayment plan, except that a borrower who selects the
Repayment Assistance Plan and also has an excepted loan
that is not eligible for repayment under such Repayment
Assistance Plan shall repay the excepted loan separately
from other loans under this part obtained by the borrower.
‘‘(D) CHANGES OF REPAYMENT PLAN.—A borrower may
change the borrower’s selection of—
‘‘(i) the standard repayment plan under subpara-
graph (A)(i), or the Secretary’s selection of such plan
for the borrower under subparagraph (B), as the case
may be, to the Repayment Assistance Plan under
subparagraph (A)(ii) at any time; and
‘‘(ii) the Repayment Assistance Plan under
subparagraph (A)(ii) to the standard repayment plan
under subparagraph (A)(i) at any time.
‘‘(E) REPAYMENT FOR BORROWERS WITH EXCEPTED
LOANS MADE ON OR AFTER JULY 1, 2026.—
139 STAT. 340 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(i) STANDARD REPAYMENT PLAN REQUIRED.—Not-
withstanding subparagraphs (A) through (D), begin-
ning on July 1, 2026, the Secretary shall require a
borrower who has received an excepted loan made
on or after such date (including such a borrower who
also has an excepted loan made before such date) to
repay each excepted loan, including principal and
interest on those excepted loans, under the standard
repayment plan under subparagraph (A)(i). The bor-
rower shall be entitled to accelerate, without penalty,
repayment on such loans.
‘‘(ii) EXCEPTED LOAN DEFINED.—For the purposes
of this paragraph, the term ‘excepted loan’ means a
loan with an outstanding balance that is—
‘‘(I) a Federal Direct PLUS Loan that is made
on behalf of a dependent student; or
‘‘(II) a Federal Direct Consolidation Loan, if
the proceeds of such loan were used to discharge
the liability on—
‘‘(aa) an excepted PLUS loan, as defined
in section 493C(a)(1); or
‘‘(bb) an excepted consolidation loan (as
such term is defined in section 493C(a)(2)(A),
notwithstanding subparagraph (B) of such sec-
tion).’’.
(c) ELIMINATION OF AUTHORITY TO PROVIDE INCOME CONTIN-
GENT REPAYMENT PLANS.—
(1) REPEAL.—Subsection (e) of section 455 of the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
(2) FURTHER AMENDMENTS TO ELIMINATE INCOME CONTIN-
GENT REPAYMENT.—
(A) Section 428 of the Higher Education Act of 1965
(20 U.S.C. 1078) is amended—
(i) in subsection (b)(1)(D), by striking ‘‘be subject
to income contingent repayment in accordance with
subsection (m)’’ and inserting ‘‘be subject to income-
based repayment in accordance with subsection (m)’’;
and
(ii) in subsection (m)—
(I) in the subsection heading, by striking
‘‘INCOME CONTINGENT AND’’;
(II) by amending paragraph (1) to read as
follows:
‘‘(1) AUTHORITY OF SECRETARY TO REQUIRE.—The Secretary
may require borrowers who have defaulted on loans made under
this part that are assigned to the Secretary under subsection
(c)(8) to repay those loans pursuant to an income-based repay-
ment plan under section 493C.’’; and
(III) in the heading of paragraph (2), by
striking ‘‘INCOME CONTINGENT OR’’.
(B) Section 428C of the Higher Education Act of 1965
(20 U.S.C. 1078–3) is amended—
(i) in subsection (a)(3)(B)(i)(V)(aa), by striking ‘‘for
the purposes of obtaining income contingent repayment
or income-based repayment’’ and inserting ‘‘for the pur-
poses of qualifying for an income-based repayment plan
under section 455(q) or section 493C, as applicable’’;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 341
(ii) in subsection (b)(5), by striking ‘‘be repaid
either pursuant to income contingent repayment under
part D of this title, pursuant to income-based repay-
ment under section 493C, or pursuant to any other
repayment provision under this section’’ and inserting
‘‘be repaid pursuant to an income-based repayment
plan under section 493C or any other repayment provi-
sion under this section’’; and
(iii) in subsection (c)—
(I) in paragraph (2)(A), by striking ‘‘or by the
terms of repayment pursuant to income contingent
repayment offered by the Secretary under sub-
section (b)(5)’’ and inserting ‘‘or by the terms of
repayment pursuant to an income-based repay-
ment plan under section 493C’’; and
(II) in paragraph (3)(B), by striking ‘‘except
as required by the terms of repayment pursuant
to income contingent repayment offered by the Sec-
retary under subsection (b)(5)’’ and inserting
‘‘except as required by the terms of repayment
pursuant to an income-based repayment plan
under section 493C’’.
(C) Section 485(d)(1) of the Higher Education Act of
1965 (20 U.S.C. 1092(d)(1)) is amended by striking ‘‘income-
contingent and’’.
(D) Section 494(a)(2) of the Higher Education Act of
1965 (20 U.S.C. 1098h(a)(2)) is amended—
(i) in the paragraph heading, by striking ‘‘INCOME-
CONTINGENT AND INCOME-BASED’’ and inserting
‘‘INCOME-BASED’’; and
(ii) in subparagraph (A)—
(I) in the matter preceding clause (i), by
striking ‘‘income-contingent or’’; and
(II) in clause (ii)(I), by striking ‘‘section
455(e)(8) or the equivalent procedures established
under section 493C(c)(2)(B), as applicable’’ and
inserting ‘‘section 493C(c)(2)’’.
(3) EFFECTIVE DATE.—The amendments made by this sub- 20 USC 1078
section shall take effect on July 1, 2028. note.
(d) REPAYMENT ASSISTANCE PLAN.—Section 455 of the Higher
Education Act of 1965 (20 U.S.C. 1087e) is amended by adding
at the end the following new subsection:
‘‘(q) REPAYMENT ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of Effective date.
this Act, beginning on July 1, 2026, the Secretary shall carry
out an income-based repayment plan (to be known as the
‘Repayment Assistance Plan’), that shall have the following
terms and conditions:
‘‘(A) The total monthly repayment amount owed by
a borrower for all of the loans of the borrower that are
repaid pursuant to the Repayment Assistance Plan shall
be equal to the applicable monthly payment of a borrower
calculated under paragraph (4)(B), except that the borrower
may not be precluded from repaying an amount that
exceeds such amount for any month.
‘‘(B) The Secretary shall apply the borrower’s applicable Applicability.
monthly payment under this paragraph first toward
139 STAT. 342 PUBLIC LAW 119–21—JULY 4, 2025
interest due on each such loan, next toward any fees due
on each loan, and then toward the principal of each loan.
Deferment. ‘‘(C) Any principal due and not paid under subpara-
graph (B) or paragraph (2)(B) shall be deferred.
Applicability. ‘‘(D) A borrower who is not in a period of deferment
Time period. or forbearance shall make an applicable monthly payment
for each month until the earlier of—
‘‘(i) the date on which the outstanding balance
of principal and interest due on all of the loans of
the borrower that are repaid pursuant to the Repay-
ment Assistance Plan is $0; or
‘‘(ii) the date on which the borrower has made
360 qualifying monthly payments.
Cancellation. ‘‘(E) The Secretary shall cancel any outstanding bal-
ance of principal and interest due on a loan made under
this part to a borrower—
‘‘(i) who, for any period of time, participated in
the Repayment Assistance Plan under this subsection;
‘‘(ii) whose most recent payment for such loan prior
to the loan cancellation under this subparagraph was
made under such Repayment Assistance Plan; and
Time period. ‘‘(iii) who has made 360 qualifying monthly pay-
ments on such loan.
Definition. ‘‘(F) For the purposes of this subsection, the term ‘quali-
fying monthly payment’ means any of the following:
‘‘(i) An on-time applicable monthly payment under
this subsection.
‘‘(ii) An on-time monthly payment under the
standard repayment plan under subsection (d)(7)(A)(i)
of not less than the monthly payment required under
such plan.
‘‘(iii) A monthly payment under any repayment
plan (excluding the Repayment Assistance Plan under
this subsection) of not less than the monthly payment
that would be required under a standard repayment
plan under section 455(d)(1)(A) with a repayment
period of 10 years.
‘‘(iv) A monthly payment under section 493C of
not less than the monthly payment required under
such section, including a monthly payment equal to
the minimum payment amount permitted under such
section.
‘‘(v) A monthly payment made before July 1, 2028,
under an income contingent repayment plan carried
out under section 455(d)(1)(D) (or under an alternative
repayment plan in lieu of repayment under such an
income contingent repayment plan, if placed in such
an alternative repayment plan by the Secretary) of
not less than the monthly payment required under
such a plan, including a monthly payment equal to
the minimum payment amount permitted under such
a plan.
‘‘(vi) A month when the borrower did not make
a payment because the borrower was in deferment
under subsection (f)(2)(B) or due to an economic hard-
ship described in subsection (f)(2)(D).
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 343
‘‘(vii) A month that ended before the date of enact-
ment of this subsection when the borrower did not
make a payment because the borrower was in a period
of deferment or forbearance described in section
685.209(k)(4)(iv) of title 34, Code of Federal Regula-
tions (as in effect on the date of enactment of this
subsection).
‘‘(G) The procedures established by the Secretary under Applicability.
section 493C(c) shall apply for annually determining the Time period.
Determination.
borrower’s eligibility for the Repayment Assistance Plan,
including verification of a borrower’s annual income and
the annual amount due on the total amount of loans eligible
to be repaid under this subsection, and such other proce-
dures as are necessary to effectively implement income-
based repayment under this subsection. With respect to
carrying out section 494(a)(2) for the Repayment Assistance
Plan, an individual may elect to opt out of the disclosures
required under section 494(a)(2)(A)(ii) in accordance with
the procedures established under section 493C(c)(2).
‘‘(2) BALANCE ASSISTANCE FOR DISTRESSED BORROWERS.—
‘‘(A) INTEREST SUBSIDY.—With respect to a borrower
of a loan made under this part, for each month for which
such a borrower makes an on-time applicable monthly pay-
ment required under paragraph (1)(A) and such monthly
payment is insufficient to pay the total amount of interest
that accrues for the month on all loans of the borrower
repaid pursuant to the Repayment Assistance Plan under
this subsection, the amount of interest accrued and not
paid for the month shall not be charged to the borrower.
‘‘(B) MATCHING PRINCIPAL PAYMENT.—With respect to Reduction.
a borrower of a loan made under this part and not in
a period of deferment or forbearance, for each month for
which a borrower makes an on-time applicable monthly
payment required under paragraph (1)(A) and such
monthly payment reduces the total outstanding principal
balance of all loans of the borrower repaid pursuant to
the Repayment Assistance Plan under this subsection by
less than $50, the Secretary shall reduce such total out-
standing principal balance of the borrower by an amount
that is equal to—
‘‘(i) the amount that is the lesser of—
‘‘(I) $50; or
‘‘(II) the total amount paid by the borrower
for such month pursuant to paragraph (1)(A);
minus
‘‘(ii) the total amount paid by the borrower for Applicability.
such month pursuant to paragraph (1)(A) that is
applied to such total outstanding principal balance.
‘‘(3) ADDITIONAL DOCUMENTS.—A borrower who chooses, or
is required, to repay a loan under this subsection, and for
whom adjusted gross income is unavailable or does not reason-
ably reflect the borrower’s current income, shall provide to
the Secretary other documentation of income satisfactory to
the Secretary, which documentation the Secretary may use
to determine repayment under this subsection.
‘‘(4) DEFINITIONS.—In this subsection:
139 STAT. 344 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(A) ADJUSTED GROSS INCOME.—The term ‘adjusted
gross income’, when used with respect to a borrower, means
the adjusted gross income (as such term is defined in
section 62 of the Internal Revenue Code of 1986) of the
borrower (and the borrower’s spouse, as applicable) for
the most recent taxable year, except that, in the case
of a married borrower who files a separate Federal income
tax return, the term does not include the adjusted gross
income of the borrower’s spouse.
‘‘(B) APPLICABLE MONTHLY PAYMENT.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), (iii), or (vi), the term ‘applicable monthly payment’
means, when used with respect to a borrower, the
amount equal to—
‘‘(I) the applicable base payment of the bor-
rower, divided by 12; minus
‘‘(II) $50 for each dependent of the borrower
(which, in the case of a married borrower filing
a separate Federal income tax return, shall include
only each dependent that the borrower claims on
that return).
‘‘(ii) MINIMUM AMOUNT.—In the case of a borrower
with an applicable monthly payment amount calculated
under clause (i) that is less than $10, the applicable
monthly payment of the borrower shall be $10.
‘‘(iii) FINAL PAYMENT.—In the case of a borrower
whose total outstanding balance of principal and
interest on all of the loans of the borrower that are
repaid pursuant to the Repayment Assistance Plan
is less than the applicable monthly payment calculated
pursuant to clause (i) or (ii), as applicable, then the
applicable monthly payment of the borrower shall be
the total outstanding balance of principal and interest
on all such loans.
‘‘(iv) BASE PAYMENT.—The amount of the applicable
base payment for a borrower with an adjusted gross
income of—
‘‘(I) not more than $10,000, is $120;
‘‘(II) more than $10,000 and not more than
$20,000, is 1 percent of such adjusted gross income;
‘‘(III) more than $20,000 and not more than
$30,000, is 2 percent of such adjusted gross income;
‘‘(IV) more than $30,000 and not more than
$40,000, is 3 percent of such adjusted gross income;
‘‘(V) more than $40,000 and not more than
$50,000, is 4 percent of such adjusted gross income;
‘‘(VI) more than $50,000 and not more than
$60,000, is 5 percent of such adjusted gross income;
‘‘(VII) more than $60,000 and not more than
$70,000, is 6 percent of such adjusted gross income;
‘‘(VIII) more than $70,000 and not more than
$80,000, is 7 percent of such adjusted gross income;
‘‘(IX) more than $80,000 and not more than
$90,000, is 8 percent of such adjusted gross income;
‘‘(X) more than $90,000 and not more than
$100,000, is 9 percent of such adjusted gross
income; and
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 345
‘‘(XI) more than $100,000, is 10 percent of
such adjusted gross income.
‘‘(v) DEPENDENT.—For the purposes of this para-
graph, the term ‘dependent’ means an individual who
is a dependent under section 152 of the Internal Rev-
enue Code of 1986.
‘‘(vi) SPECIAL RULE.—In the case of a borrower
who is required by the Secretary to provide information
to the Secretary to determine the applicable monthly
payment of the borrower under this subparagraph, and
who does not comply with such requirement, the
applicable monthly payment of the borrower shall be—
‘‘(I) the sum of the monthly payment amounts Time period.
the borrower would have paid for each of the bor-
rower’s loans made under this part under a
standard repayment plan with a fixed monthly
repayment amount, paid over a period of 10 years,
based on the outstanding principal due on such
loan when such loan entered repayment; and
‘‘(II) determined pursuant to this clause until
the date on which the borrower provides such
information to the Secretary.’’.
(e) FEDERAL CONSOLIDATION LOANS.—Section 455(g) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended
by adding at the end the following new paragraph:
‘‘(3) CONSOLIDATION LOANS MADE ON OR AFTER JULY 1, Effective date.
2026.—A Federal Direct Consolidation Loan offered to a bor- Determination.
rower under this part on or after July 1, 2026, may only
be repaid pursuant to a repayment plan described in clause
(i) or (ii) of subsection (d)(7)(A) of this section, as applicable,
and the repayment schedule of such a Consolidation Loan shall
be determined in accordance with such repayment plan.’’.
(f) INCOME-BASED REPAYMENT.—
(1) AMENDMENTS.—
(A) EXCEPTED CONSOLIDATION LOAN DEFINED.—Section
493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C.
1098e(a)(2)) is amended to read as follows:
‘‘(2) EXCEPTED CONSOLIDATION LOAN.—
‘‘(A) IN GENERAL.—The term ‘excepted consolidation
loan’ means—
‘‘(i) a consolidation loan under section 428C, or
a Federal Direct Consolidation Loan, if the proceeds
of such loan were used to discharge the liability on
an excepted PLUS loan; or
‘‘(ii) a consolidation loan under section 428C, or
a Federal Direct Consolidation Loan, if the proceeds
of such loan were used to discharge the liability on
a consolidation loan under section 428C, or a Federal
Direct Consolidation Loan described in clause (i).
‘‘(B) EXCLUSION.—The term ‘excepted consolidation Time period.
loan’ does not include a Federal Direct Consolidation Loan
described in subparagraph (A) that, on any date during
the period beginning on the date of enactment of this
subparagraph and ending on June 30, 2028, was being
repaid—
‘‘(i) pursuant to the Income Contingent Repayment
(ICR) plan in accordance with section 685.209(b) of
139 STAT. 346 PUBLIC LAW 119–21—JULY 4, 2025
title 34, Code of Federal Regulations (as in effect on
June 30, 2023); or
‘‘(ii) pursuant to another income driven repayment
plan.’’.
(B) TERMINATION OF PARTIAL FINANCIAL HARDSHIP
ELIGIBILITY.—Section 493C(a)(3) of the Higher Education
Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read
as follows:
Definition. ‘‘(3) APPLICABLE AMOUNT.—The term ‘applicable amount’
means 15 percent of the result obtained by calculating, on
at least an annual basis, the amount by which—
‘‘(A) the borrower’s, and the borrower’s spouse’s (if
applicable), adjusted gross income; exceeds
‘‘(B) 150 percent of the poverty line applicable to the
borrower’s family size as determined under section 673(2)
of the Community Services Block Grant Act (42 U.S.C.
9902(2)).’’.
(C) TERMS OF INCOME-BASED REPAYMENT.—Section
493C(b) of the Higher Education Act of 1965 (20 U.S.C.
1098e(b)) is amended—
(i) by amending paragraph (1) to read as follows:
‘‘(1) a borrower of any loan made, insured, or guaranteed
under part B or D (other than an excepted PLUS loan or
excepted consolidation loan), may elect to have the borrower’s
aggregate monthly payment for all such loans not exceed the
applicable amount divided by 12;’’;
(ii) by striking paragraph (6) and inserting the
following:
Time period. ‘‘(6) if the monthly payment amount calculated under this
section for all loans made to the borrower under part B or
D (other than an excepted PLUS loan or excepted consolidation
loan) exceeds the monthly amount calculated under section
428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment
period, when the borrower first made the election described
in this subsection (referred to in this paragraph as the ‘standard
monthly repayment amount’), or if the borrower no longer
wishes to continue the election under this subsection, then—
‘‘(A) the maximum monthly payment required to be
paid for all loans made to the borrower under part B
or D (other than an excepted PLUS loan or excepted consoli-
dation loan) shall be the standard monthly repayment
amount; and
‘‘(B) the amount of time the borrower is permitted
to repay such loans may exceed 10 years;’’;
(iii) in paragraph (7)(B)(iv), by inserting ‘‘(as such
section was in effect on the day before the date of
the repeal of section 455(e)’’ after ‘‘section 455(d)(1)(D)’’;
and
(iv) in paragraph (8), by inserting ‘‘or the Repay-
ment Assistance Program under section 455(q)’’ after
‘‘standard repayment plan’’.
(D) ELIGIBILITY DETERMINATIONS.—Section 493C(c) of
the Higher Education Act of 1965 (20 U.S.C. 1098e(c))
is amended to read as follows:
Procedures. ‘‘(c) ELIGIBILITY DETERMINATIONS; AUTOMATIC RECERTIFI-
CATION.—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 347
‘‘(1) IN GENERAL.—The Secretary shall establish procedures Time period.
for annually determining, in accordance with paragraph (2),
the borrower’s eligibility for income-based repayment, including
the verification of a borrower’s annual income and the annual
amount due on the total amount of loans made, insured, or
guaranteed under part B or D (other than an excepted PLUS
loan or excepted consolidation loan), and such other procedures
as are necessary to effectively implement income-based repay-
ment under this section. The Secretary shall consider, but
is not limited to, the procedures established in accordance
with section 455(e)(1) (as in effect on the day before the date
of repeal of subsection (e) of section 455) or in connection
with income sensitive repayment schedules under section
428(b)(9)(A)(iii) or 428C(b)(1)(E).
‘‘(2) AUTOMATIC RECERTIFICATION.—
‘‘(A) IN GENERAL.—The Secretary shall establish and
implement, with respect to any borrower enrolled in an
income-based repayment program under this section or
under section 455(q), procedures to—
‘‘(i) use return information disclosed under section
6103(l)(13) of the Internal Revenue Code of 1986,
pursuant to approval provided under section 494, to
determine the repayment obligation of the borrower
without further action by the borrower;
‘‘(ii) allow the borrower (or the spouse of the bor-
rower), at any time, to opt out of disclosure under
such section 6103(l)(13) and instead provide such
information as the Secretary may require to determine
the repayment obligation of the borrower (or withdraw
from the repayment plan under this section or under
section 455(q), as the case may be); and
‘‘(iii) provide the borrower with an opportunity to
update the return information so disclosed before the
determination of the repayment obligation of the bor-
rower.
‘‘(B) APPLICABILITY.—Subparagraph (A) shall apply to
each borrower of a loan eligible to be repaid under this
section or under section 455(q), who, on or after the date
on which the Secretary establishes procedures under such
subparagraph (A)—
‘‘(i) selects, or is required to repay such loan pursu-
ant to, an income-based repayment plan under this
section or under section 455(q); or
‘‘(ii) recertifies income or family size under such
plan.’’.
(E) SPECIAL TERMS FOR NEW BORROWERS ON AND AFTER Effective date.
JULY 1, 2014.—Section 493C(e) of the Higher Education
Act of 1965 (20 U.S.C. 1098e(e)) is amended—
(i) in the subsection heading, by inserting ‘‘AND
BEFORE JULY 1, 2026’’ after ‘‘AFTER JULY 1, 2014’’;
and
(ii) by inserting ‘‘and before July 1, 2026’’ after
‘‘after July 1, 2014’’.
(2) EFFECTIVE DATE AND APPLICATION.—The amendments 20 USC 1098e
made by this subsection shall take effect on the date of enact- note.
ment of this title, and shall apply with respect to any borrower
139 STAT. 348 PUBLIC LAW 119–21—JULY 4, 2025
who is in repayment before, on, or after the date of enactment
of this title.
(g) FFEL ADJUSTMENT.—Section 428(b)(9)(A)(v) of the Higher
Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by
striking ‘‘who has a partial financial hardship’’.
SEC. 82002. DEFERMENT; FORBEARANCE.
(a) SUNSET OF ECONOMIC HARDSHIP AND UNEMPLOYMENT
DEFERMENTS.—Section 455(f) of the Higher Education Act of 1965
(20 U.S.C. 1087e(f)) is amended—
(1) by striking the subsection heading and inserting the
following: ‘‘DEFERMENT; FORBEARANCE’’;
(2) in paragraph (2)—
(A) in subparagraph (B), by striking ‘‘not in’’ and
inserting ‘‘subject to paragraph (7), not in’’; and
(B) in subparagraph (D), by striking ‘‘not in’’ and
inserting ‘‘subject to paragraph (7), not in’’; and
(3) by adding at the end the following:
‘‘(7) SUNSET OF UNEMPLOYMENT AND ECONOMIC HARDSHIP
DEFERMENTS.—A borrower who receives a loan made under
this part on or after July 1, 2027, shall not be eligible to
defer such loan under subparagraph (B) or (D) of paragraph
(2).’’.
Effective date. (b) FORBEARANCE ON LOANS MADE UNDER THIS PART ON OR
AFTER JULY 1, 2027.—Section 455(f) of the Higher Education Act
of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end
the following:
Time periods. ‘‘(8) FORBEARANCE ON LOANS MADE UNDER THIS PART ON
OR AFTER JULY 1, 2027.—A borrower who receives a loan made
under this part on or after July 1, 2027, may only be eligible
for a forbearance on such loan pursuant to section 428(c)(3)(B)
that does not exceed 9 months during any 24-month period.’’.
SEC. 82003. LOAN REHABILITATION.
(a) UPDATING LOAN REHABILITATION LIMITS.—
(1) FFEL AND DIRECT LOANS.—Section 428F(a)(5) of the
Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(5)) is
amended by striking ‘‘one time’’ and inserting ‘‘two times’’.
(2) PERKINS LOANS.—Section 464(h)(1)(D) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended
by striking ‘‘once’’ and inserting ‘‘twice’’.
Applicability. (3) EFFECTIVE DATE.—The amendments made by this sub-
20 USC 1078–6 section shall take effect beginning on July 1, 2027, and shall
note. apply with respect to any loan made, insured, or guaranteed
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.).
Effective date. (b) MINIMUM MONTHLY PAYMENT AMOUNT.—Section
428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078–
6(a)(1)(B)) is amended by adding at the end the following: ‘‘With
respect to a borrower who has 1 or more loans made under part
D on or after July 1, 2027 that are described in subparagraph
(A), the total monthly payment of the borrower for all such loans
shall not be less than $10.’’.
SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS.
Section 455(m)(1)(A) of the Higher Education Act of 1965 (20
U.S.C. 1087e(m)(1)(A)) is amended—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 349
(1) in clause (iii), by striking ‘‘; or’’ and inserting a semi-
colon;
(2) in clause (iv), by striking ‘‘; and’’ and inserting ‘‘(as
in effect on the day before the date of the repeal of subsection
(e) of this section); or’’; and
(3) by adding at the end the following new clause:
‘‘(v) on-time payments under the Repayment
Assistance Plan under subsection (q); and’’.
SEC. 82005. STUDENT LOAN SERVICING.
Paragraph (1) of section 458(a) of the Higher Education Act
of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows:
‘‘(1) ADDITIONAL MANDATORY FUNDS FOR SERVICING.—There
shall be available to the Secretary (in addition to any other
amounts appropriated under any appropriations Act for
administrative costs under this part and part B and out of
any money in the Treasury not otherwise appropriated)
$1,000,000,000 to be obligated for administrative costs under
this part and part B, including the costs of servicing the direct
student loan programs under this part, which shall remain
available until expended.’’.
Subtitle D—Pell Grants
SEC. 83001. ELIGIBILITY.
(a) FOREIGN INCOME AND FEDERAL PELL GRANT ELIGIBILITY.—
(1) ADJUSTED GROSS INCOME DEFINED.—Section 401(a)(2)(A)
of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A))
is amended to read as follows:
‘‘(A) the term ‘adjusted gross income’ means— Definition.
‘‘(i) in the case of a dependent student, for the
second tax year preceding the academic year—
‘‘(I) the adjusted gross income (as defined in
section 62 of the Internal Revenue Code of 1986)
of the student’s parents; plus
‘‘(II) for Federal Pell Grant determinations
made for academic years beginning on or after
July 1, 2026, the foreign income (as described in
section 480(b)(5)) of the student’s parents; and
‘‘(ii) in the case of an independent student, for
the second tax year preceding the academic year—
‘‘(I) the adjusted gross income (as defined in
section 62 of the Internal Revenue Code of 1986)
of the student (and the student’s spouse, if
applicable); plus
‘‘(II) for Federal Pell Grant determinations
made for academic years beginning on or after
July 1, 2026, the foreign income (as described in
section 480(b)(5)) of the student (and the student’s
spouse, if applicable);’’.
(2) SUNSET.—Section 401(b)(1)(D) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended—
(A) by striking ‘‘A student’’ and inserting ‘‘For each
academic year beginning before July 1, 2026, a student’’;
and
139 STAT. 350 PUBLIC LAW 119–21—JULY 4, 2025
(B) by inserting ‘‘, as in effect for such academic year,’’
after ‘‘section 479A(b)(1)(B)(v)’’.
(3) CONFORMING AMENDMENTS.—
(A) IN GENERAL.—Section 479A(b)(1)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is
amended—
(i) by striking clause (v); and
(ii) by redesignating clauses (vi) and (vii) as clauses
(v) and (vi), respectively.
20 USC 1087tt (B) EFFECTIVE DATE.—The amendment made by
note. subparagraph (A) shall take effect on July 1, 2026.
(b) FEDERAL PELL GRANT INELIGIBILITY DUE TO A HIGH STU-
DENT AID INDEX.—
(1) IN GENERAL.—Section 401(b)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at
the end the following:
‘‘(F) INELIGIBILITY OF STUDENTS WITH A HIGH STUDENT
AID INDEX.—Notwithstanding subparagraphs (A) through
(E), a student shall not be eligible for a Federal Pell Grant
under this subsection for an academic year in which the
student has a student aid index that equals or exceeds
twice the amount of the total maximum Federal Pell Grant
for such academic year.’’.
20 USC 1070a (2) EFFECTIVE DATE.—The amendment made by paragraph
note. (1) shall take effect on July 1, 2026.
Time periods. SEC. 83002. WORKFORCE PELL GRANTS.
(a) IN GENERAL.—Section 401 of the Higher Education Act
of 1965 (20 U.S.C. 1070a) is amended by adding at the end the
following:
‘‘(k) WORKFORCE PELL GRANT PROGRAM.—
Effective date. ‘‘(1) IN GENERAL.—For the award year beginning on July
1, 2026, and each subsequent award year, the Secretary shall
award grants (to be known as ‘Workforce Pell Grants’) to eligible
students under paragraph (2) in accordance with this sub-
section.
‘‘(2) ELIGIBLE STUDENTS.—To be eligible to receive a
Workforce Pell Grant under this subsection for any period
of enrollment, a student shall meet the eligibility requirements
for a Federal Pell Grant under this section, except that the
student—
‘‘(A) shall be enrolled, or accepted for enrollment, in
an eligible program under section 481(b)(3) (hereinafter
referred to as an ‘eligible workforce program’); and
‘‘(B) may not—
‘‘(i) be enrolled, or accepted for enrollment, in a
program of study that leads to a graduate credential;
or
‘‘(ii) have attained such a credential.
‘‘(3) TERMS AND CONDITIONS OF AWARDS.—The Secretary
shall award Workforce Pell Grants under this subsection in
the same manner and with the same terms and conditions
as the Secretary awards Federal Pell Grants under this section,
except that—
‘‘(A) each use of the term ‘eligible program’ (except
in subsection (b)(9)(A)) shall be substituted by ‘eligible
workforce program under section 481(b)(3)’;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 351
‘‘(B) the provisions of subsection (d)(2) shall not be
applicable to eligible workforce programs; and
‘‘(C) a student who is eligible for a grant equal to
less than the amount of the minimum Federal Pell Grant
because the eligible workforce program in which the stu-
dent is enrolled or accepted for enrollment is less than
an academic year (in hours of instruction or weeks of
duration) may still be eligible for a Workforce Pell Grant
in an amount that is prorated based on the length of
the program.
‘‘(4) PREVENTION OF DOUBLE BENEFITS.—No eligible student
described in paragraph (2) may concurrently receive a grant
under both this subsection and—
‘‘(A) subsection (b); or
‘‘(B) subsection (c).
‘‘(5) DURATION LIMIT.—Any period of study covered by a Determination.
Workforce Pell Grant awarded under this subsection shall be
included in determining a student’s duration limit under sub-
section (d)(5).’’.
(b) PROGRAM ELIGIBILITY FOR WORKFORCE PELL GRANTS.—Sec-
tion 481(b) of the Higher Education Act of 1965 (20 U.S.C. 1088(b))
is amended—
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
‘‘(3)(A) A program is an eligible program for purposes of
the Workforce Pell Grant program under section 401(k) only
if—
‘‘(i) it is a program of at least 150 clock hours of
instruction, but less than 600 clock hours of instruction,
or an equivalent number of credit hours, offered by an
eligible institution during a minimum of 8 weeks, but less
than 15 weeks;
‘‘(ii) it is not offered as a correspondence course, as
defined in 600.2 of title 34, Code of Federal Regulations
(as in effect on July 1, 2021);
‘‘(iii) the Governor of a State, after consultation with State and local
the State board, determines that the program— governments.
Determination.
‘‘(I) provides an education aligned with the require-
ments of high-skill, high-wage (as identified by the
State pursuant to section 122 of the Carl D. Perkins
Career and Technical Education Act (20 U.S.C. 2342)),
or in-demand industry sectors or occupations;
‘‘(II) meets the hiring requirements of potential
employers in the sectors or occupations described in
subclause (I);
‘‘(III) either—
‘‘(aa) leads to a recognized postsecondary
credential that is stackable and portable across
more than one employer; or
‘‘(bb) with respect to students enrolled in the
program—
‘‘(AA) prepares such students for employ-
ment in an occupation for which there is only
one recognized postsecondary credential; and
139 STAT. 352 PUBLIC LAW 119–21—JULY 4, 2025
‘‘(BB) provides such students with such
a credential upon completion of such program;
and
‘‘(IV) prepares students to pursue 1 or more certifi-
cate or degree programs at 1 or more institutions of
higher education (which may include the eligible
institution providing the program), including by
ensuring—
‘‘(aa) that a student, upon completion of the
program and enrollment in such a related certifi-
cate or degree program, will receive academic
credit for the Workforce Pell program that will
be accepted toward meeting such certificate or
degree program requirements; and
‘‘(bb) the acceptability of such credit toward
meeting such certificate or degree program require-
ments; and
State and local ‘‘(iv) after the Governor of such State makes the deter-
governments. mination that the program meets the requirements under
Determination. clause (iii), the Secretary determines that—
‘‘(I) the program has been offered by the eligible
institution for not less than 1 year prior to the date
on which the Secretary makes a determination under
this clause;
‘‘(II) for each award year, the program has a
verified completion rate of at least 70 percent, within
150 percent of the normal time for completion;
‘‘(III) for each award year, the program has a
verified job placement rate of at least 70 percent, meas-
ured 180 days after completion; and
‘‘(IV) for each award year, the total amount of
the published tuition and fees of the program for such
year is an amount that does not exceed the value-
added earnings of students who received Federal finan-
cial aid under this title and who completed the program
3 years prior to the award year, as such earnings
are determined by calculating the difference between—
‘‘(aa) the median earnings of such students,
as adjusted by the State and metropolitan area
regional price parities of the Bureau of Economic
Analysis based on the location of such program;
and
‘‘(bb) 150 percent of the poverty line applicable
to a single individual as determined under section
673(2) of the Community Services Block Grant
Act (42 U.S.C. 9902(2)) for such year.
Definitions. ‘‘(B) In this paragraph:
‘‘(i) The term ‘eligible institution’ means an eligible
institution for purposes of section 401.
‘‘(ii) The term ‘Governor’ means the chief executive
of a State.
‘‘(iii) The terms ‘in-demand industry sector or occupa-
tion’, ‘recognized postsecondary credential’, and ‘State
board’ have the meanings given such terms in section 3
of the Workforce Innovation and Opportunity Act.’’.
20 USC 1070a (c) EFFECTIVE DATE; APPLICABILITY.—The amendments made
note. by this section shall take effect on July 1, 2026, and shall apply
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 353
with respect to award year 2026–2027 and each succeeding award
year.
SEC. 83003. PELL SHORTFALL.
Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965
(20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking
‘‘$2,170,000,000’’ and inserting ‘‘$12,670,000,000’’.
SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER
GRANT AID.
Section 401(d) of the Higher Education Act of 1965 (20 U.S.C.
1070a(d)) is amended by adding at the end the following:
‘‘(6) EXCLUSION.—Beginning on July 1, 2026, and notwith- Effective date.
standing this subsection or subsection (b), a student shall not
be eligible for a Federal Pell Grant under subsection (b) during
any period for which the student receives grant aid from non-
Federal sources, including States, institutions of higher edu-
cation, or private sources, in an amount that equals or exceeds
the student’s cost of attendance for such period.’’.
Subtitle E—Accountability
SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES.
Section 454 of the Higher Education Act of 1965 (20 U.S.C.
1087d) is amended—
(1) in subsection (a)—
(A) in paragraph (5), by striking ‘‘and’’ after the semi-
colon;
(B) by redesignating paragraph (6) as paragraph (7);
and
(C) by inserting after paragraph (5) the following:
‘‘(6) provide assurances that, beginning July 1, 2026, the
institution will comply with all requirements of subsection (c);
and’’;
(2) in subsection (b)(2), by striking ‘‘and (6)’’ and inserting
‘‘(6), and (7)’’;
(3) by redesignating subsection (c) as subsection (d); and
(4) by inserting after subsection (b) the following:
‘‘(c) INELIGIBILITY FOR CERTAIN PROGRAMS BASED ON LOW Time periods.
EARNING OUTCOMES.—
‘‘(1) IN GENERAL.—Notwithstanding section 481(b), an
institution of higher education subject to this subsection shall
not use funds under this part for student enrollment in an
educational program offered by the institution that is described
in paragraph (2).
‘‘(2) LOW-EARNING OUTCOME PROGRAMS DESCRIBED.—An Determination.
educational program at an institution is described in this para-
graph if the program awards an undergraduate degree, grad-
uate or professional degree, or graduate certificate, for which
the median earnings (as determined by the Secretary) of the
programmatic cohort of students who received funds under
this title for enrollment in such program, who completed such
program during the academic year that is 4 years before the
year of the determination, who are not enrolled in any institu-
tion of higher education, and who are working, are, for not
less than 2 of the 3 years immediately preceding the date
of the determination, less than the median earnings of a
139 STAT. 354 PUBLIC LAW 119–21—JULY 4, 2025
working adult described in paragraph (3) for the corresponding
year.
‘‘(3) CALCULATION OF MEDIAN EARNINGS.—
‘‘(A) WORKING ADULT.—For purposes of applying para-
graph (2) to an educational program at an institution,
a working adult described in this paragraph is a working
adult who, for the corresponding year—
‘‘(i) is aged 25 to 34;
‘‘(ii) is not enrolled in an institution of higher
education; and
‘‘(iii)(I) in the case of a determination made for
an educational program that awards a baccalaureate
or lesser degree, has only a high school diploma or
its recognized equivalent; or
‘‘(II) in the case of a determination made for a
graduate or professional program, has only a bacca-
laureate degree.
Applicability. ‘‘(B) SOURCE OF DATA.—For purposes of applying para-
graph (2) to an educational program at an institution,
the median earnings of a working adult, as described in
subparagraph (A), shall be based on data from the Bureau
of the Census—
‘‘(i) with respect to an educational program that
awards a baccalaureate or lesser degree—
‘‘(I) for the State in which the institution is
located; or
‘‘(II) if fewer than 50 percent of the students
enrolled in the institution reside in the State
where the institution is located, for the entire
United States; and
‘‘(ii) with respect to an educational program that
is a graduate or professional program—
‘‘(I) for the lowest median earnings of—
‘‘(aa) a working adult in the State in which
the institution is located;
‘‘(bb) a working adult in the same field
of study (as determined by the Secretary, such
as by using the 2-digit CIP code) in the State
in which the institution is located; and
‘‘(cc) a working adult in the same field
of study (as so determined) in the entire
United States; or
‘‘(II) if fewer than 50 percent of the students
enrolled in the institution reside in the State
where the institution is located, for the lower
median earnings of—
‘‘(aa) a working adult in the entire United
States; or
‘‘(bb) a working adult in the same field
of study (as so determined) in the entire
United States.
‘‘(4) SMALL PROGRAMMATIC COHORTS.—For any year for
which the programmatic cohort described in paragraph (2) for
an educational program of an institution is fewer than 30
individuals, the Secretary shall—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 355
‘‘(A) first, aggregate additional years of programmatic
data in order to achieve a cohort of at least 30 individuals;
and
‘‘(B) second, in cases in which the cohort (including
the individuals added under subparagraph (A)) is still fewer
than 30 individuals, aggregate additional cohort years of
programmatic data for educational programs of equivalent
length in order to achieve a cohort of at least 30 individuals.
‘‘(5) APPEALS PROCESS.—An educational program shall not
lose eligibility under this subsection unless the institution has
had the opportunity to appeal the programmatic median
earnings of students working and not enrolled determination
under paragraph (2), through a process established by the
Secretary. During such appeal, the Secretary may permit the
educational program to continue to participate in the program
under this part.
‘‘(6) NOTICE TO STUDENTS.—
‘‘(A) IN GENERAL.—If an educational program of an
institution of higher education subject to this subsection
does not meet the cohort median earning requirements,
as described in paragraph (2), for one year during the
applicable covered period but has not yet failed to meet
such requirements for 2 years during such covered period,
the institution shall promptly inform each student enrolled
in the educational program of the eligible program’s low
cohort median earnings and that the educational program
is at risk of losing its eligibility for funds under this part.
‘‘(B) COVERED PERIOD.—In this paragraph, the term Definition.
‘covered period’ means the period of the 3 years imme-
diately preceding the date of a determination made under
paragraph (2).
‘‘(7) REGAINING PROGRAMMATIC ELIGIBILITY.—The Secretary Process.
shall establish a process by which an institution of higher
education that has an educational program that has lost eligi-
bility under this subsection may, after a period of not less
than 2 years of such program’s ineligibility, apply to regain
such eligibility, subject to the requirements established by the
Secretary that further the purpose of this subsection.’’.
Subtitle F—Regulatory Relief
SEC. 85001. DELAY OF RULE RELATING TO BORROWER DEFENSE TO Effective dates.
REPAYMENT.
(a) DELAY.—Beginning on the date of enactment of this section,
for loans that first originate before July 1, 2035, the provisions
of subpart D of part 685 of title 34, Code of Federal Regulations
(relating to borrower defense to repayment), as added or amended
by the final regulations published by the Department of Education
on November 1, 2022, and titled ‘‘Institutional Eligibility Under
the Higher Education Act of 1965, as Amended; Student Assistance
General Provisions; Federal Perkins Loan Program; Federal Family
Education Loan Program; and William D. Ford Federal Direct Loan
Program’’ (87 Fed. Reg. 65904) shall not be in effect.
(b) EFFECT.—Beginning on the date of enactment of this section,
with respect to loans that first originate before July 1, 2035, any
regulations relating to borrower defense to repayment that took
139 STAT. 356 PUBLIC LAW 119–21—JULY 4, 2025
effect on July 1, 2020, are restored and revived as such regulations
were in effect on such date.
Effective dates. SEC. 85002. DELAY OF RULE RELATING TO CLOSED SCHOOL DIS-
CHARGES.
(a) DELAY.—Beginning on the date of enactment of this section,
for loans that first originate before July 1, 2035, the provisions
of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code
of Federal Regulations (relating to closed school discharges), as
added or amended by the final regulations published by the Depart-
ment of Education on November 1, 2022, and titled ‘‘Institutional
Eligibility Under the Higher Education Act of 1965, as Amended;
Student Assistance General Provisions; Federal Perkins Loan Pro-
gram; Federal Family Education Loan Program; and William D.
Ford Federal Direct Loan Program’’ (87 Fed. Reg. 65904), shall
not be in effect.
(b) EFFECT.—Beginning on the date of enactment of this section,
with respect to loans that first originate before July 1, 2035, the
portions of the Code of Federal Regulations described in subsection
(a) and amended by the final regulations described in subsection
(a) shall be in effect as if the amendments made by such final
regulations had not been made.
Subtitle G—Garden of Heroes
Appropriations SEC. 86001. GARDEN OF HEROES.
authorization.
Time period. In addition to amounts otherwise available, there are appro-
priated to the National Endowment for the Humanities for fiscal
year 2025, out of any money in the Treasury not otherwise appro-
priated, to remain available through fiscal year 2028, $40,000,000
for the procurement of statues as described in Executive Order
13934 (85 Fed. Reg. 41165; relating to building and rebuilding
monuments to American heroes), Executive Order 13978 (86 Fed.
Reg. 6809; relating to building the National Garden of American
Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating
to celebrating America’s birthday).
Subtitle H—Office of Refugee Resettlement
SEC. 87001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED
ALIEN CHILDREN APPROPRIATION.
Time period. (a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Office of Refugee Resettlement
for fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $300,000,000, to remain available until September
30, 2028, for the purposes described in subsection (b).
(b) USE OF FUNDS.—The funds made available under subsection
(a) may only be used for the Office of Refugee Resettlement to
support costs associated with—
(1) background checks on potential sponsors, which shall
include—
(A) the name of the potential sponsor and of all adult
residents of the potential sponsor’s household;
(B) the social security number or tax payer identifica-
tion number of the potential sponsor and of all adult resi-
dents of the potential sponsor’s household;
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 357
(C) the date of birth of the potential sponsor and of
all adult residents of the potential sponsor’s household;
(D) the validated location of the residence at which
the unaccompanied alien child will be placed;
(E) an in-person or virtual interview with, and suit-
ability study concerning, the potential sponsor and all adult
residents of the potential sponsor’s household;
(F) contact information for the potential sponsor and
for all adult residents of the potential sponsor’s household;
and
(G) the results of all background and criminal records
checks for the potential sponsor and for all adult residents
of the potential sponsor’s household, which shall include,
at a minimum, an investigation of the public records sex
offender registry, a public records background check, and
a national criminal history check based on fingerprints;
(2) home studies of potential sponsors of unaccompanied
alien children;
(3) determining whether an unaccompanied alien child Determination.
poses a danger to self or others by conducting an examination
of the unaccompanied alien child for gang-related tattoos and
other gang-related markings and covering such tattoos or
markings while the child is in the care of the Office of Refugee
Resettlement;
(4) data systems improvement and sharing that supports
the health, safety, and well being of unaccompanied alien chil-
dren by determining the appropriateness of potential sponsors
of unaccompanied alien children and of adults residing in the
household of the potential sponsor and by assisting with the
identification and investigation of child labor exploitation and
child trafficking; and
(5) coordinating and communicating with State child wel-
fare agencies regarding the placement of unaccompanied alien
children in such States by the Office of Refugee Resettlement.
(c) DEFINITIONS.—In this section:
(1) POTENTIAL SPONSOR.—The term ‘‘potential sponsor’’
means an individual or entity who applies for the custody
of an unaccompanied alien child.
(2) UNACCOMPANIED ALIEN CHILD.—The term ‘‘unaccom-
panied alien child’’ has the meaning given such term in section
462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)).
TITLE IX—COMMITTEE ON HOMELAND Appropriations
authorization.
SECURITY AND GOVERNMENTAL AF- Time periods.
FAIRS
Subtitle A—Homeland Security Provisions
SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM.
In addition to amounts otherwise available, there is appro-
priated to the Commissioner of U.S. Customs and Border Protection
for fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2029,
$46,550,000,000 for necessary expenses relating to the following
elements of the border infrastructure and wall system:
139 STAT. 358 PUBLIC LAW 119–21—JULY 4, 2025
(1) Construction, installation, or improvement of new or
replacement primary, waterborne, and secondary barriers.
(2) Access roads.
(3) Barrier system attributes, including cameras, lights,
sensors, and other detection technology.
(4) Any work necessary to prepare the ground at or near
the border to allow U.S. Customs and Border Protection to
conduct its operations, including the construction and mainte-
nance of the barrier system.
SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL,
FLEET VEHICLES, AND FACILITIES.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Commissioner of U.S. Customs and
Border Protection for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, the following:
(1) PERSONNEL.—$4,100,000,000, to remain available until
September 30, 2029, to hire and train additional Border Patrol
agents, Office of Field Operations officers, Air and Marine
agents, rehired annuitants, and U.S. Customs and Border
Protection field support personnel.
(2) RETENTION, HIRING, AND PERFORMANCE BONUSES.—
$2,052,630,000, to remain available until September 30, 2029,
to provide recruitment bonuses, performance awards, or annual
retention bonuses to eligible Border Patrol agents, Office of
Field Operations officers, and Air and Marine agents.
(3) VEHICLES.—$855,000,000, to remain available until Sep-
tember 30, 2029, for the repair of existing patrol units and
the lease or acquisition of additional patrol units.
(4) FACILITIES.—$5,000,000,000 for necessary expenses
relating to lease, acquisition, construction, design, or improve-
ment of facilities and checkpoints owned, leased, or operated
by U.S. Customs and Border Protection.
Expiration date. (b) RESTRICTION.—None of the funds made available by sub-
section (a) may be used to recruit, hire, or train personnel for
the duties of processing coordinators after October 31, 2028.
SEC. 90003. DETENTION CAPACITY.
(a) IN GENERAL.—In addition to any amounts otherwise appro-
priated, there is appropriated to U.S. Immigration and Customs
Enforcement for fiscal year 2025, out of any money in the Treasury
not otherwise appropriated, to remain available until September
30, 2029, $45,000,000,000, for single adult alien detention capacity
and family residential center capacity.
(b) DURATION AND STANDARDS.—Aliens may be detained at
family residential centers, as described in subsection (a), pending
a decision, under the Immigration and Nationality Act (8 U.S.C.
1101 et seq.), on whether the aliens are to be removed from the
United States and, if such aliens are ordered removed from the
United States, until such aliens are removed. The detention stand-
ards for the single adult detention capacity described in subsection
(a) shall be set in the discretion of the Secretary of Homeland
Security, consistent with applicable law.
(c) DEFINITION OF FAMILY RESIDENTIAL CENTER.—In this sec-
tion, the term ‘‘family residential center’’ means a facility used
by the Department of Homeland Security to detain family units
of aliens (including alien children who are not unaccompanied alien
children (as defined in section 462(g) of the Homeland Security
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 359
Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended
by the Department of Homeland Security.
SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Commissioner of U.S. Customs and
Border Protection for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, to remain available until Sep-
tember 30, 2029, $6,168,000,000 for the following:
(1) Procurement and integration of new nonintrusive
inspection equipment and associated civil works, including
artificial intelligence, machine learning, and other innovative
technologies, as well as other mission support, to combat the
entry or exit of illicit narcotics at ports of entry and along
the southwest, northern, and maritime borders.
(2) Air and Marine operations’ upgrading and procurement
of new platforms for rapid air and marine response capabilities.
(3) Upgrades and procurement of border surveillance tech-
nologies along the southwest, northern, and maritime borders.
(4) Necessary expenses, including the deployment of tech-
nology, relating to the biometric entry and exit system under
section 7208 of the Intelligence Reform and Terrorism Preven-
tion Act of 2004 (8 U.S.C. 1365b).
(5) Screening persons entering or exiting the United States.
(6) Initial screenings of unaccompanied alien children (as
defined in section 462(g) of the Homeland Security Act of 2002
(6 U.S.C. 279(g))), consistent with the William Wilberforce Traf-
ficking Victims Protection Reauthorization Act of 2008 (Public
Law 110–457; 122 Stat. 5044).
(7) Enhancing border security by combating drug traf-
ficking, including fentanyl and its precursor chemicals, at the
southwest, northern, and maritime borders.
(8) Commemorating efforts and events related to border
security.
(b) RESTRICTIONS.—None of the funds made available under
subsection (a) may be used for the procurement or deployment
of surveillance towers along the southwest border and northern
border that have not been tested and accepted by U.S. Customs
and Border Protection to deliver autonomous capabilities.
(c) DEFINITION OF AUTONOMOUS.—In this section, with respect
to capabilities, the term ‘‘autonomous’’ means a system designed
to apply artificial intelligence, machine learning, computer vision,
or other algorithms to accurately detect, identify, classify, and track
items of interest in real time such that the system can make
operational adjustments without the active engagement of personnel
or continuous human command or control.
SEC. 90005. STATE AND LOCAL ASSISTANCE.
(a) STATE HOMELAND SECURITY GRANT PROGRAMS.—
(1) IN GENERAL.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator of the Federal
Emergency Management Agency for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029, to be administered
under the State Homeland Security Grant Program authorized
under section 2004 of the Homeland Security Act of 2002 (6
U.S.C. 605), to enhance State, local, and Tribal security through
grants, contracts, cooperative agreements, and other activities—
139 STAT. 360 PUBLIC LAW 119–21—JULY 4, 2025
(A) $500,000,000 for State and local capabilities to
detect, identify, track, or monitor threats from unmanned
aircraft systems (as such term is defined in section 44801
of title 49, United States Code), consistent with titles 18
and 49 of the United States Code;
(B) $625,000,000 for security and other costs related
to the 2026 FIFA World Cup;
(C) $1,000,000,000 for security, planning, and other
costs related to the 2028 Olympics; and
(D) $450,000,000 for the Operation Stonegarden Grant
Program.
(2) TERMS AND CONDITIONS.—None of the funds made avail-
able under subparagraph (B) or (C) of paragraph (1) shall
be subject to the requirements of section 2004(e)(1) or section
2008(a)(12) of the Homeland Security Act of 2002 (6 U.S.C.
605(e)(1), 609(a)(12)).
8 USC 1716. (b) STATE BORDER SECURITY REINFORCEMENT FUND.—
(1) ESTABLISHMENT.—There is established, in the Depart-
ment of Homeland Security, a fund to be known as the ‘‘State
Border Security Reinforcement Fund.’’
(2) PURPOSES.—The Secretary of Homeland Security shall
use amounts appropriated or otherwise made available for the
Fund for grants to eligible States and units of local government
for any of the following purposes:
(A) Construction or installation of a border wall, border
fencing or other barrier, or buoys along the southern border
of the United States, which may include planning, procure-
ment of materials, and personnel costs related to such
construction or installation.
(B) Any work necessary to prepare the ground at or
near land borders to allow construction and maintenance
of a border wall or other barrier fencing.
(C) Detection and interdiction of illicit substances and
aliens who have unlawfully entered the United States and
have committed a crime under Federal, State, or local
law, and transfer or referral of such aliens to the Depart-
ment of Homeland Security as provided by law.
(D) Relocation of aliens who are unlawfully present
in the United States from small population centers to other
domestic locations.
(3) APPROPRIATION.—In addition to amounts otherwise
available for the purposes described in paragraph (2), there
is appropriated for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, to the Department of
Homeland Security for the State Border Security Reinforcement
Fund established by paragraph (1), $10,000,000,000, to remain
available until September 30, 2034, for qualified expenses for
such purposes.
Effective date. (4) ELIGIBILITY.—The Secretary of Homeland Security may
provide grants from the fund established by paragraph (1)
to State agencies and units of local governments for expendi-
tures made for completed, ongoing, or new activities, in accord-
ance with law, that occurred on or after January 20, 2021.
(5) APPLICATION.—Each State desiring to apply for a grant
under this subsection shall submit an application to the Sec-
retary containing such information in support of the application
as the Secretary may require. The Secretary shall require that
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 361
each State include in its application the purposes for which
the State seeks the funds and a description of how the State
plans to allocate the funds. The Secretary shall begin to accept Deadline.
applications not later than 90 days after the date of the enact-
ment of this Act.
(6) TERMS AND CONDITIONS.—Nothing in this subsection
shall authorize any State or local government to exercise
immigration or border security authorities reserved exclusively
to the Federal Government under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.) or the Homeland Security
Act of 2002 (6 U.S.C. 101 et seq.). The Federal Emergency
Management Agency may use not more than 1 percent of the
funds made available under this subsection for the purpose
of administering grants provided for in this section.
SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Federal Emergency
Management Agency for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, $300,000,000, to remain
available until September 30, 2029, for the reimbursement of
extraordinary law enforcement personnel costs for protection activi-
ties directly and demonstrably associated with any residence of
the President designated pursuant to section 3 or 4 of the Presi-
dential Protection Assistance Act of 1976 (Public Law 94–524; 18
U.S.C. 3056 note) to be secured by the United States Secret Service.
(b) AVAILABILITY.—Funds appropriated under this section shall
be available only for costs that a State or local agency—
(1) incurred or incurs on or after July 1, 2024; Effective date.
(2) demonstrates to the Administrator of the Federal Emer-
gency Management Agency as being—
(A) in excess of typical law enforcement operation costs;
(B) directly attributable to the provision of protection
described in this section; and
(C) associated with a nongovernmental property des-
ignated pursuant to section 3 or 4 of the Presidential
Protection Assistance Act of 1976 (Public Law 94–524; 18
U.S.C. 3056 note) to be secured by the United States Secret
Service; and
(3) certifies to the Administrator as compensating protec- Certification.
tion activities requested by the United States Secret Service.
(c) TERMS AND CONDITIONS.—The Federal Emergency Manage-
ment Agency may use not more than 3 percent of the funds made
available under this section for the purpose of administering grants
provided for in this section.
SEC. 90007. DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS Reimbursement.
FOR BORDER SUPPORT.
In addition to amounts otherwise available, there are appro-
priated to the Secretary of Homeland Security for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated,
$10,000,000,000, to remain available until September 30, 2029,
for reimbursement of costs incurred in undertaking activities in
support of the Department of Homeland Security’s mission to safe-
guard the borders of the United States.
139 STAT. 362 PUBLIC LAW 119–21—JULY 4, 2025
Subtitle B—Governmental Affairs
Provisions
FEHB Protection SEC. 90101. FEHB IMPROVEMENTS.
Act of 2025.
5 USC 8905 note. (a) SHORT TITLE.—This section may be cited as the ‘‘FEHB
Protection Act of 2025’’.
(b) DEFINITIONS.—In this section:
(1) DIRECTOR.—The term ‘‘Director’’ means the Director
of the Office of Personnel Management.
(2) HEALTH BENEFITS PLAN; MEMBER OF FAMILY.—The terms
‘‘health benefits plan’’ and ‘‘member of family’’ have the
meanings given those terms in section 8901 of title 5, United
States Code.
(3) OPEN SEASON.—The term ‘‘open season’’ means an open
season described in section 890.301(f) of title 5, Code of Federal
Regulations, or any successor regulation.
(4) PROGRAM.—The term ‘‘Program’’ means the health
insurance programs carried out under chapter 89 of title 5,
United States Code, including the program carried out under
section 8903c of that title.
(5) QUALIFYING LIFE EVENT.—The term ‘‘qualifying life
event’’ has the meaning given the term in section 892.101
of title 5, Code of Federal Regulations, or any successor regula-
tion.
Deadline. (c) VERIFICATION REQUIREMENTS.—Not later than 1 year after
Regulations. the date of enactment of this Act, the Director shall issue regula-
Process. tions and implement a process to verify—
(1) the veracity of any qualifying life event through which
an enrollee in the Program seeks to add a member of family
with respect to the enrollee to a health benefits plan under
the Program; and
(2) that, when an enrollee in the Program seeks to add
a member of family with respect to the enrollee to the health
benefits plan of the enrollee under the Program, including
during any open season, the individual so added is a qualifying
member of family with respect to the enrollee.
(d) FRAUD RISK ASSESSMENT.—In any fraud risk assessment
conducted with respect to the Program on or after the date of
enactment of this Act, the Director shall include an assessment
of individuals who are enrolled in, or covered under, a health
benefits plan under the Program even though those individuals
are not eligible to be so enrolled or covered.
(e) FAMILY MEMBER ELIGIBILITY VERIFICATION AUDIT.—
Time period. (1) IN GENERAL.—During the 3-year period beginning on
Effective date. the date that is 1 year after the date of enactment of this
Act, the Director shall carry out a comprehensive audit
regarding members of family who are covered under an enroll-
ment in a health benefits plan under the Program.
(2) CONTENTS.—With respect to the audit carried out under
paragraph (1), the Director shall review marriage certificates,
birth certificates, and other appropriate documents that are
necessary to determine eligibility to enroll in a health benefits
plan under the Program.
Deadline. (f) DISENROLLMENT OR REMOVAL.—Not later than 180 days
Process. after the date of enactment of this Act, the Director shall develop
a process by which any individual enrolled in, or covered under,
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 363
a health benefits plan under the Program who is not eligible to
be so enrolled or covered shall be disenrolled or removed from
enrollment in, or coverage under, that health benefits plan.
(g) EARNED BENEFITS AND HEALTH CARE ADMINISTRATIVE SERV-
ICES ASSOCIATED OVERSIGHT AND AUDIT FUNDING.—Section 8909
of title 5, United States Code, is amended—
(1) in subsection (a)(2), by inserting before the period at
the end the following: ‘‘, except that the amounts required
to be set aside under subsection (b)(2) shall not be subject
to the limitations that may be specified annually by Congress’’;
and
(2) in subsection (b)—
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following:
‘‘(2) In fiscal year 2026, $66,000,000, to be derived from Time periods.
all contributions, and to remain available until the end of
fiscal year 2035, for the Director of the Office to carry out
subsections (c) through (f) of the FEHB Protection Act of 2025.’’.
SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE.
(a) PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE FUNDING
AVAILABILITY.—In addition to amounts otherwise available, there
is appropriated for fiscal year 2026, out of any money in the
Treasury not otherwise appropriated, $88,000,000, to remain avail-
able until expended, for the Pandemic Response Accountability
Committee to support oversight of the Coronavirus response and
of funds provided in this Act or any other Act pertaining to the
Coronavirus pandemic.
(b) CARES ACT.—Section 15010 of the CARES Act (Public 5 USC 424 note.
Law 116–136; 134 Stat. 533) is amended—
(1) in subsection (a)(6)—
(A) in subparagraph (E), by striking ‘‘or’’ at the end;
(B) in subparagraph (F), by striking ‘‘and’’ at the end
and inserting ‘‘or’’; and
(C) by adding at the end the following:
‘‘(G) the Act titled ‘An Act to provide for reconciliation
pursuant to title II of H. Con. Res. 14’; and’’; and
(2) in subsection (k), by striking ‘‘2025’’ and inserting
‘‘2034’’.
SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND
BUDGET.
In addition to amounts otherwise available, there is appro-
priated to the Office of Management and Budget for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2029, for
purposes of finding budget and accounting efficiencies in the execu-
tive branch.
139 STAT. 364 PUBLIC LAW 119–21—JULY 4, 2025
Time periods. TITLE X—COMMITTEE ON THE
JUDICIARY
Subtitle A—Immigration and Law
Enforcement Matters
8 USC 1801 PART I—IMMIGRATION FEES
et seq.
8 USC 1801. SEC. 100001. APPLICABILITY OF THE IMMIGRATION LAWS.
(a) APPLICABILITY.—The fees under this subtitle shall apply
to aliens in the circumstances described in this subtitle.
(b) TERMS.—The terms used under this subtitle shall have
the meanings given such terms in section 101 of the Immigration
and Nationality Act (8 U.S.C. 1101).
(c) REFERENCES TO IMMIGRATION AND NATIONALITY ACT.—
Except as otherwise expressly provided, any reference in this sub-
title to a section or other provision shall be considered to be to
a section or other provision of the Immigration and Nationality
Act (8 U.S.C. 1101 et seq.).
8 USC 1802. SEC. 100002. ASYLUM FEE.
(a) IN GENERAL.—In addition to any other fee authorized by
law, the Secretary of Homeland Security or the Attorney General,
as applicable, shall require the payment of a fee, equal to the
amount specified in this section, by any alien who files an applica-
tion for asylum under section 208 (8 U.S.C. 1158) at the time
such application is filed.
(b) INITIAL AMOUNT.—During fiscal year 2025, the amount
specified in this section shall be the greater of—
(1) $100; or
(2) such amount as the Secretary or the Attorney General,
as applicable, may establish, by rule.
(c) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year
2026, and during each subsequent fiscal year, the amount specified
in this section shall be equal to the sum of—
(1) the amount of the fee required under this section for
the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such adjust-
ment takes effect exceeds the Consumer Price Index for All
Urban Consumers for the same month of the preceding calendar
year, rounded to the next lowest multiple of $10.
(d) DISPOSITION OF ASYLUM FEE PROCEEDS.—During each fiscal
year—
(1) 50 percent of the fees received from aliens filing applica-
tions with the Attorney General—
(A) shall be credited to the Executive Office for
Immigration Review; and
(B) may be retained and expended without further
appropriation;
(2) 50 percent of fees received from aliens filing applications
with the Secretary of Homeland Security—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 365
(A) shall be credited to U.S. Citizenship and Immigra-
tion Services;
(B) shall be deposited into the Immigration Examina-
tions Fee Account established under section 286(m) (8
U.S.C. 1356(m)); and
(C) may be retained and expended without further
appropriation; and
(3) any amounts received in fees required under this section
that were not credited to the Executive Office for Immigration
Review pursuant to paragraph (1) or to U.S. Citizenship and
Immigration Services pursuant to paragraph (2) shall be depos-
ited into the general fund of the Treasury.
(e) NO FEE WAIVER.—Fees required to be paid under this
section shall not be waived or reduced.
SEC. 100003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES. 8 USC 1803.
(a) ASYLUM APPLICANTS.—
(1) IN GENERAL.—In addition to any other fee authorized
by law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this sub-
section, by any alien who files an initial application for employ-
ment authorization under section 208(d)(2) (8 U.S.C. 1158(d)(2))
at the time such initial employment authorization application
is filed.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount
specified in this subsection shall be the greater of—
(A) $550; or
(B) such amount as the Secretary of Homeland Security Regulations.
may establish, by rule.
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal
year 2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this section
for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the percent-
age (if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding the
date on which such adjustment takes effect exceeds the
Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) DISPOSITION OF EMPLOYMENT AUTHORIZATION DOCUMENT
FEES.—During each fiscal year—
(A) 25 percent of the fees collected pursuant to this
subsection—
(i) shall be credited to U.S. Citizenship and
Immigration Services;
(ii) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(iii) may be retained and expended by U.S. Citizen-
ship and Immigration Services without further appro-
priation, provided that not less than 50 percent is
used to detect and prevent immigration benefit fraud;
and
139 STAT. 366 PUBLIC LAW 119–21—JULY 4, 2025
(B) any amounts collected pursuant to this subsection
that are not credited to U.S. Citizenship and Immigration
Services pursuant to subparagraph (A) shall be deposited
into the general fund of the Treasury.
(5) NO FEE WAIVER.—Fees required to be paid under this
subsection shall not be waived or reduced.
(b) PAROLEES.—
(1) IN GENERAL.—In addition to any other fee authorized
by law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this sub-
section, by any alien paroled into the United States for any
initial application for employment authorization at the time
such initial application is filed. Each initial employment
authorization shall be valid for a period of 1 year or for the
duration of the alien’s parole, whichever is shorter.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount
specified in this subsection shall be the greater of—
(A) $550; or
(B) such amount as the Secretary of Homeland Security
may establish, by rule.
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal
year 2026, and during each subsequent fiscal year, the amount
specified in this subsection shall be equal to the sum of—
(A) the amount of the fee required under this sub-
section for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the percent-
age (if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding the
date on which such adjustment takes effect exceeds the
Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) DISPOSITION OF PAROLEE EMPLOYMENT AUTHORIZATION
APPLICATION FEES.—All of the fees collected pursuant to this
subsection shall be deposited into the general fund of the
Treasury.
(5) NO FEE WAIVER.—Fees required to be paid under this
subsection shall not be waived or reduced.
(c) TEMPORARY PROTECTED STATUS.—
(1) IN GENERAL.—In addition to any other fee authorized
by law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this sub-
section, by any alien who files an initial application for employ-
ment authorization under section 244(a)(1)(B) (8 U.S.C.
1254a(a)(1)(B)) at the time such initial application is filed.
Each initial employment authorization shall be valid for a
period of 1 year, or for the duration of the alien’s temporary
protected status, whichever is shorter.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount
specified in this subsection shall be the greater of—
(A) $550; or
Regulations. (B) such amount as the Secretary of Homeland Security
may establish, by rule.
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal
year 2026, and during each subsequent fiscal year, the amount
specified in this subsection shall be equal to the sum of—
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 367
(A) the amount of the fee required under this sub-
section for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the percent-
age (if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding the
date on which such adjustment takes effect exceeds the
Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) DISPOSITION OF EMPLOYMENT AUTHORIZATION APPLICA-
TION FEES COLLECTED FROM ALIENS GRANTED TEMPORARY PRO-
TECTED STATUS.—All of the fees collected pursuant to this sub-
section shall be deposited into the general fund of the Treasury.
(5) NO FEE WAIVER.—Fees required to be paid under this
subsection shall not be waived or reduced.
SEC. 100004. IMMIGRATION PAROLE FEE. 8 USC 1804.
(a) IN GENERAL.—Except as provided under subsection (b), the
Secretary of Homeland Security shall require the payment of a
fee, equal to the amount specified in this section and in addition
to any other fee authorized by law, by any alien who is paroled
into the United States.
(b) EXCEPTIONS.—An alien shall not be subject to the fee other-
wise required under subsection (a) if the alien establishes, to the
satisfaction of the Secretary of Homeland Security, on an individual,
case-by-case basis, that the alien is being paroled because—
(1)(A) the alien has a medical emergency; and
(B)(i) the alien cannot obtain necessary treatment in the
foreign state in which the alien is residing; or
(ii) the medical emergency is life-threatening and there
is insufficient time for the alien to be admitted to the United
States through the normal visa process;
(2)(A) the alien is the parent or legal guardian of an alien
described in paragraph (1); and
(B) the alien described in paragraph (1) is a minor;
(3)(A) the alien is needed in the United States to donate
an organ or other tissue for transplant; and
(B) there is insufficient time for the alien to be admitted
to the United States through the normal visa process;
(4)(A) the alien has a close family member in the United
States whose death is imminent; and
(B) the alien could not arrive in the United States in
time to see such family member alive if the alien were to
be admitted to the United States through the normal visa
process;
(5)(A) the alien is seeking to attend the funeral of a close
family member; and
(B) the alien could not arrive in the United States in
time to attend such funeral if the alien were to be admitted
to the United States through the normal visa process;
(6) the alien is an adopted child—
(A) who has an urgent medical condition;
(B) who is in the legal custody of the petitioner for
a final adoption-related visa; and
(C) whose medical treatment is required before the
expected award of a final adoption-related visa;
139 STAT. 368 PUBLIC LAW 119–21—JULY 4, 2025
(7) the alien—
(A) is a lawful applicant for adjustment of status under
section 245 (8 U.S.C. 1255); and
(B) is returning to the United States after temporary
travel abroad;
(8) the alien—
(A) has been returned to a contiguous country pursuant
to section 235(b)(2)(C) (8 U.S.C. 1225(b)(2)(C)); and
(B) is being paroled into the United States to allow
the alien to attend the alien’s immigration hearing;
(9) the alien has been granted the status of Cuban and
Haitian entrant (as defined in section 501(e) of the Refugee
Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C.
1522 note); or
Determination. (10) the Secretary of Homeland Security determines that
a significant public benefit has resulted or will result from
the parole of an alien—
(A) who has assisted or will assist the United States
Government in a law enforcement matter;
(B) whose presence is required by the United States
Government in furtherance of such law enforcement
matter; and
(C)(i) who is inadmissible or does not satisfy the eligi-
bility requirements for admission as a nonimmigrant; or
(ii) for which there is insufficient time for the alien
to be admitted to the United States through the normal
visa process.
(c) INITIAL AMOUNT.—For fiscal year 2025, the amount specified
in this section shall be the greater of—
(1) $1,000; or
Regulations. (2) such amount as the Secretary of Homeland Security
may establish, by rule.
(d) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year
2026, and during each subsequent fiscal year, the amount specified
in this section shall be equal to the sum of—
(1) the amount of the fee required under this subsection
for the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such adjust-
ment takes effect exceeds the Consumer Price Index for All
Urban Consumers for the same month of the preceding calendar
year, rounded to the next lowest multiple of $10.
(e) DISPOSITION OF FEES COLLECTED FROM ALIENS GRANTED
PAROLE.—All of the fees collected pursuant to this section shall
be deposited into the general fund of the Treasury.
(f) NO FEE WAIVER.—Except as provided in subsection (b),
fees required to be paid under this section shall not be waived
or reduced.
8 USC 1805. SEC. 100005. SPECIAL IMMIGRANT JUVENILE FEE.
(a) IN GENERAL.—In addition to any other fee authorized by
law, the Secretary of Homeland Security shall require the payment
of a fee, equal to the amount specified in this section, by any
alien, parent, or legal guardian of an alien applying for special
PUBLIC LAW 119–21—JULY 4, 2025 139 STAT. 369
immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C.
1101(a)(27)(J)).
(b) INITIAL AMOUNT.—For fiscal year 2025, the amount specified
in this section shall be the greater of—
(1) $250; or
(2) such amount as the Secretary of Homeland Security Regulations.
may establish, by rule.
(c) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year
2026, and during each subsequent fiscal year, the amount specified
in this section shall be equal to the sum of—
(1) the amount of the fee required under this subsection
for the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such adjust-
ment takes effect exceeds the Consumer Price Index for All
Urban Consumers for the same month of the preceding calendar
year, rounded to the next lowest multiple of $10.
(d) DISPOSITION OF SPECIAL IMMIGRANT JUVENILE FEES.—All
of the fees collected pursuant to this section shall be deposited
into the general fund of the Treasury.
SEC. 100006. TEMPORARY PROTECTED STATUS FEE.
Section 244(c)(1)(B) of the Immigration and Nationality Act
(8 U.S.C. 1254a(c)(1)(B)) is amended—
(1) by striking ‘‘The Attorney General’’ and inserting the
following:
‘‘(i) IN GENERAL.—The Attorney General’’;
(2) in clause (i), as redesignated, by striking ‘‘$50’’ and
inserting ‘‘$500, subject to the adjustments required under
clause (ii)’’; and
(3) by adding at the end the following:
‘‘(ii) ANNUAL ADJUSTMENTS FOR INFLATION.—
During fiscal year 2026, and during each subsequent
fiscal year, the maximum amount of the fee authorized
under clause (i) shall be equal to the sum of—
‘‘(I) the maximum amount of the fee authorized
under this subparagraph for the most recently con-
cluded fiscal year; and
‘‘(II) the product resulting from the multiplica-
tion of the amount referred to in subclause (I)
by the percentage (if any) by which the Consumer
Price Index for All Urban Consumers for the month
of July preceding the date on which such adjust-
ment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same
month of the preceding calendar year, rounded
to the next lowest multiple of $10.
‘‘(iii) DISPOSITION OF TEMPORARY PROTECTED
STATUS FEES.—All of the fees collected pursuant to
this subparagraph shall be deposited into the general
fund of the Treasury.
‘‘(iv) NO FEE WAIVER.—Fees required to be paid
under this subparagraph shall not be waived or
reduced.’’.
139 STAT. 370 PUBLIC LAW 119–21—JULY 4, 2025
8 USC 1806. SEC. 100007. VISA INTEGRITY FEE.
(a) VISA INTEGRITY FEE.—
(1) IN GENERAL.—In addition to any other fee authorized
by law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this sub-
section, by any alien issued a nonimmigrant visa at the time
of such issuance.
(2) INITIAL AMOUNT.—For fiscal year 2025, the amount
specified in this section shall be the greater of—
(A) $250; or
Regulations. (B) such amount as the Secretary of Homeland Security
may establish, by rule.
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal
year 2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this sub-
section for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the percent-
age (if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding the
date on which such adjustment takes effect exceeds the
Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded down
to the nearest dollar.
(4) DISPOSITION OF VISA INTEGRITY FEES.—All of the fees
collected pursuant to this section that are not reimbursed
pursuant to subsection (b) shall be deposited into the general
fund of the Treasury.
(5) NO FEE WAIVER.—Fees required to be paid under this
subsection shall not be waived or reduced.
(b) FEE REIMBURSEMENT.—The Secretary of Homeland Security
may provide a reimbursement to an alien of the fee required under
subsection (a) for the issuance of a nonimmigrant visa after the
expiration of such nonimmigrant visa’s period of validity if such
alien demonstrates that he or she—
(1) after admission to the United States pursuant to such
nonimmigrant visa, complied with all conditions of such non-
immigrant visa, including the condition that an alien shall
not accept unauthorized employment; and
Deadline. (2)(A) has not sought to extend his or her period of admis-
sion during such period of validity and departed the United
States not later than 5 days after the last day of such period;
or
(B) during such period of validity, was granted an extension
of such nonimmigrant status or an adjustment to the status
of a lawful permanent resident.
8 USC 1807. SEC. 100008. FORM I–94 FEE.
(a) FEE AUTHORIZED.—In addition to any other fee authorized
by law, the Secretary of Homeland Security shall require the pay-
ment of a fee, equal to the amount specified in subsection (b),
by any alien who submits an application for a Form I–94 Arrival/
Departure Record.
(b) AMOUNT SPECIFIED.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount
specified in this section shall be the greater of—
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