Polluters Pay Climate Fund Act of 2025
Rep. Nadler Proposes $1 Trillion Tax on Big Oil to Fund Climate Disaster Relief
This bill was recently introduced and is currently being reviewed by three different committees in the House of Representatives. It is in the early stages of the lawmaking process and is not yet scheduled for a vote. There are no companion bills listed at this time.
Passage Likelihood
Legislative Progress
Key Points
- This bill creates a new $1 trillion tax on the largest fossil fuel companies. It targets businesses responsible for more than 1 billion metric tons of carbon dioxide emissions from extracting or refining fossil fuels between 2000 and 2023. Each company's share of the tax is based on their proportion of total covered emissions.
- All tax revenue goes into a new Polluters Pay Climate Fund to pay for climate disaster recovery, resilient infrastructure, energy grid improvements, climate-smart farming, transportation adaptation, ecosystem conservation, public health efforts, and drinking water and stormwater systems.
- At least $15 billion each year would go to FEMA for climate disaster response and resilience, including at least $3 billion for the Building Resilient Infrastructure and Communities program. Another $6 billion minimum would fund grants and technical assistance under the Clean Air Act.
From policy text
“to provide funding of not less than $15,000,000,000 to the Federal Emergency Management Agency for response and resilience programs of the Federal Emergency Management Agency to address climate-related disasters, including hurricanes, flooding, extreme heat, and wildfires”
View in full text - Forty percent of the fund must be spent on environmental justice communities, defined as communities of color, low-income communities, and Tribal and Indigenous communities that face higher health or environmental risks compared to other communities.
From policy text
“Of the amounts appropriated from the Fund each fiscal year, 40 percent shall be used for investments that benefit environmental justice communities.”
View in full text - The bill preserves the right of individuals, states, and local governments to sue fossil fuel companies under existing law. Payments into the fund cannot be used as evidence or to reduce damages in climate-related lawsuits.
From policy text
“Nothing in this Act or the amendments made by this Act shall be construed to relieve any person from liability at common law or under any State or Federal law.”
View in full text - Companies can choose to pay the tax in 9 annual installments, starting with 20% in the first year and 10% each year after. The first payment would be due by September 30, 2026.
Impact Analysis
Personal Impact
State Impacts
Milestones
Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
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Making Polluters Pay for Climate Consequences
Earlier this month Congressmembers Jerry Nadler (NY) and Judy Chu (CA) reintroduced the Polluters Pay Climate Fund Act. This legislation would require the largest fossil fuel companies to pay into a $1 trillion Polluters Pay Climate Fund to finance efforts to address climate change impacts.
Los Angeles Fires Underscore Activists' Call: Make Polluters Pay for Disasters
The federal climate Superfund legislation has been reintroduced in the Senate by Sen. Chris Van Hollen, joining its counterpart in the House. The Polluters Pay Climate Fund Act aims to move forward in the legislative session presently underway to hold fossil fuel giants accountable.
New York Climate Superfund Becomes Law
While New York and Vermont have passed state-level versions, the federal Polluters Pay Climate Fund Act has stalled in Congress. The legislation follows the 'polluter pays' approach of traditional superfunds, seeking to recover costs from major oil and gas companies for climate damages.
Source Information
Document Type
Congressional Bill
Official Title
Polluters Pay Climate Fund Act of 2025
Data Sources
Sponsor
Cosponsors
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