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Congress·In Committee·4 months ago

House MARKET Act Would Tax Carbon Pollution at $35/Ton, Fund Roads and Airports

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

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(10)
Snap Food Stamps
Neutral
Medicare
Neutral
Disability Benefits
Neutral
Housing Assistance
Neutral
Union Member
Neutral
Gig Worker
Neutral
Military Active
Neutral
Military Veteran
Neutral
Child Tax Credit
Neutral
Student
Neutral
Positive Impacts(4)
Medicaid
Helps
Chronic Illness
Helps
Small Business Owner
Helps
Veterans Benefits
Helps

Key Points

  • Creates a nationwide tax on climate-warming pollution from fossil fuels and some industries, starting in 2027 at $35 per metric ton.
  • Adds “border” fees on certain imported goods (and rebates for exports) so U.S. makers aren’t undercut by countries without similar costs.
  • Sends most of the money to a trust fund to pay for highways, airports, weatherization, flood protection projects, and energy research.
  • Requires states to pass along grant money to eligible low-income households (generally up to 150% of the poverty line) to help with costs.
  • Limits EPA from adding many new greenhouse-gas rules on taxed emissions until 2039 (with earlier end dates if emissions targets aren’t met).
Climate ChangeTaxesTradeInfrastructureEnvironment

Milestones

2 milestones2 actions
Oct 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.

Oct 24, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

Federal gasoline/diesel and aviation fuel taxes stop applying to most transactions

Gas and diesel prices could be lower than they otherwise would be in 2026, depending on how much of the tax savings stations pass on

2025-10-01

VA survivor benefit change for ALS deaths applies going forward

Some surviving spouses of veterans who die from ALS can qualify for the higher payment rate without a time-sick requirement, if they meet the 8-year marriage rule

Within 90 days after the bill is enacted

CISA convenes a school-door rulemaking advisory committee

Schools and parents would start seeing the federal process for reinforced school door requirements move forward

Within 1 year after the bill is enacted

Defense Department names a PFAS community engagement coordinator

PFAS-affected communities near bases may get clearer communication and a dedicated point of contact, but cleanup funding/timelines may still vary

Within 1 year after the bill is enacted

HHS/FDA finish the cancer drug shortage study and send a report to Congress

Could lead to policy changes that reduce drug shortages and treatment delays for cancer patients

Regulations must be published at least 1 year before the tax starts (planned start is 2027)

EPA and Treasury publish key regulations needed before the greenhouse gas taxes can be collected

Businesses and consumers will learn the detailed rules; the tax cannot start until at least 1 year after these rules are published

Calendar year 2027 (only if required regulations were published on time)

Greenhouse gas tax begins (planned start year)

Energy and some industrial products may get more expensive as companies pay the tax and pass on costs; clean energy investments may become more attractive

Starting in FY2027, if the emissions tax is in effect and state distribution rules are set

States begin receiving annual “state grants” intended for payments to eligible low-income households

Eligible households participating in SNAP/SSI and certain Medicare low-income programs could receive cash-like support from their state tied to energy-use emissions in that state

About 18 months after enactment (report due 1 year after committee convenes, then 6 months to final rule)

CISA issues a final rule requiring reinforced/modified school doors

Federally funded K-12 schools would have to meet door security requirements on a federal timeline; construction and procurement could ramp up

2039-01-01

Clean Air Act greenhouse-gas regulation “pause” for many taxed fuels/emissions ends

After 2039, EPA could again regulate certain greenhouse-gas emissions based on climate impacts even when those emissions are taxed, unless other law changes

Related News

4 articles
WHYY·over 7 years ago

In rarity for GOP, Fitzpatrick pushes for carbon tax to cut greenhouse gas emissions

Reps. Brian Fitzpatrick and Carlos Curbelo introduced the MARKET CHOICE Act to reduce carbon emissions and generate billions for infrastructure by taxing fossil fuels. The bill aims to replace the federal gas tax with a carbon fee, with revenue going to the Highway Trust Fund.

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POLITICO·almost 5 years ago

Bipartisan duo reintroduces carbon tax legislation

Reps. Brian Fitzpatrick and Salud Carbajal reintroduced the MARKET CHOICE Act, which would impose a $35-per-ton tax on carbon emissions. The revenue would be funneled into infrastructure investments to replace the federal gasoline tax, though it faces hurdles with the Biden administration.

CL=
Carbon Pulse·10 months ago

US carbon tax/tariff combo – US Representatives Brian Fitzpatrick (R-PA) and Salud Carbajal (D-CA) on Wednesday reintroduced the MARKET CHOICE Act

Representatives Brian Fitzpatrick and Salud Carbajal reintroduced the MARKET CHOICE Act in May 2025. The bipartisan proposal seeks to replace the federal gasoline tax with a carbon tax on fossil fuel combustion and industrial sources, including a border tax adjustment for competitiveness.

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Source Information

Document Type

Congressional Bill

Official Title

To advance bipartisan, common sense solutions.

Bill NumberHR 5827
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.

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Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.