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Congress·In Committee·H.R. 3001

House Panel Reviews MARKET Act's $35-Per-Ton Carbon Tax to Fund Roads, Airports, and Flood Protection

To advance commonsense priorities.

Also known as: Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act

11 months ago·View on Congress.gov
Part of: Congress Advances $35 Carbon Tax Proposal for 2027 Infrastructure Funding
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Stalled

No legislative action in over 90 days.

Legislative Progress

House
Senate
President
Law

Key Points

  • Creates a new federal tax on greenhouse gas pollution starting in 2027, beginning at $35 per metric ton for emissions from fossil fuels and certain industries.

    From policy text

    “for calendar year 2027, $35 per metric ton of carbon dioxide equivalent emissions”
    View in full text
  • Adds a “border adjustment” so some imports pay a similar charge and some U.S. exporters can get rebates, aiming to protect U.S. manufacturers.

    From policy text

    “The term `border tax adjustment' means the levying of a tax on imported covered goods equivalent to the amount of tax paid pursuant to part 1 of this subtitle in the manufacture of comparable domestic manufactured goods, and the rebating of the tax paid pursuant to part 1 of this subtitle that has been paid on covered goods exported from the United States.”
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  • Sends most of the new revenue to a trust fund, with big shares for highways, airports, weatherization, flood protection projects, and energy research.

    From policy text

    “70 percent for each of the fiscal years 2027 through 2036 to the Highway Trust Fund. (2) 1.5 percent for each of the fiscal years 2027 through 2036 for the weatherization program developed under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).”
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  • Repeals federal gasoline and aviation fuel taxes after 2025, and sets up state grants to help eligible low-income households with energy-related costs.

    From policy text

    “the Secretary of the Treasury shall make a annual grant to each State (hereafter in this section referred to as ``State grant'') to distribute to eligible low-income households in accordance with this section.”
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  • Also includes major add-ons: more cancer research funding, school door security rules and grants, election and ethics changes, trafficking finance efforts, and veterans support.

    From policy text

    “referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and Workforce, Transportation and Infrastructure, Science, Space, and Technology, Agriculture, Appropriations, Armed Services, the Budget, Rules, Ethics, Financial Services, Foreign Affairs, Homeland Security, House Administration, the Judiciary, Intelligence (Permanent Select), Oversight and Government Reform, Small Business, and Veterans' Affairs”
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Climate ChangeTaxesInfrastructureHealthcareEducation

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(6)
Housing Assistance
Neutral
Union Member
Neutral
Military Active
Neutral
Military Veteran
Neutral
Veterans Benefits
Neutral
Student
Neutral
Positive Impacts(11)
Tribal Member
Helps
Snap Food Stamps
Helps
Disability Benefits
Helps
Medicare
Helps
Chronic Illness
Helps
Retiree
Helps
Renter
Helps
Homeowner
Helps
Medicaid
Helps
Child Tax Credit
Helps
Small Business Owner
Helps

Milestones

2 milestones2 actions
Apr 24, 2025House

Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and Workforce, Transportation and Infrastructure, Science, Space, and Technology, Agriculture, Appropriations, Armed Services, the Budget, Rules, Ethics, Financial Services, Foreign Affairs, Homeland Security, House Administration, the Judiciary, Intelligence (Permanent Select), Oversight and Government Reform, Small Business, and Veterans' Affairs, 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.

Apr 24, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

Federal gasoline and aviation fuel taxes end

Gasoline and airline fuel would no longer include these specific federal excise taxes after this date; prices may or may not drop depending on how sellers adjust

Starting in FY2026 (begins Oct 2025) and continuing through FY2030

National Cancer Institute gets an added yearly research funding boost (FY2026–FY2030)

More federal dollars for cancer research and trials could start flowing during FY2026 and continue for 5 years

2025-10-01

VA higher survivor benefit rule applies to ALS deaths on or after Oct 1, 2025

Some surviving spouses of veterans who die from ALS (and were married at least 8 years) could qualify for higher monthly benefits for deaths from this date forward

Rules must be published at least 1 year before the tax can be collected

Treasury and EPA must publish key emissions-tax regulations at least 1 year before collection can start

Businesses and consumers won’t see the new greenhouse gas tax collected until after rules are published and a 1-year waiting period passes

Calendar year 2027 (or later if regulations are delayed)

Greenhouse gas tax starts at $35/metric ton (if rules are timely)

Fuel and some industrial products could become more expensive as the new tax begins; the rate rises each year after

FY2027 through FY2036, once revenue is collected and appropriated

RISE Trust Fund spending stream begins for highways, weatherization, state grants, and other programs

New dedicated funding could start supporting road projects, weatherization help, and other items once tax revenue arrives and Congress passes appropriations

Regulations due within 1 year after enactment; annual lists follow each January 31

Treasury/Customs set up border greenhouse gas adjustment program

Some imported carbon-heavy goods may face new border fees and some exporters may get rebates, which can change prices and competition

Within 1 year after enactment

Defense Department names a PFAS community engagement coordinator

Communities near PFAS-affected defense sites may have a clearer point of contact and more consistent updates, even if cleanup pace doesn’t change

Final rule due about 18 months after enactment (90 days to convene committee + 1 year report + 6 months)

CISA issues a final rule requiring reinforced school doors in federally funded K-12 schools

Schools may need to install or retrofit doors, plan construction, and train staff; federal grant money becomes available for this purpose

2039-01-01

Clean Air Act greenhouse-gas regulation moratorium ends (unless ended earlier by emissions triggers)

After this date, the EPA could again limit greenhouse gas emissions from taxed sources based on climate effects, unless earlier triggers already ended the moratorium

Source Information

Document Type

Congressional Bill

Official Title

To advance commonsense priorities.

Bill NumberHR 3001
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and Workforce, Transportation and Infrastructure, Science, Space, and Technology, Agriculture, Appropriations, Armed Services, the Budget, Rules, Ethics, Financial Services, Foreign Affairs, Homeland Security, House Administration, the Judiciary, Intelligence (Permanent Select), Oversight and Government Reform, Small Business, and Veterans' Affairs, 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.

Sponsor

Analysis generated by AI. Always verify with official sources.