arrow_back Back to App

Carbon Tax Replaces Fuel Taxes, Funds Infrastructure and Low-Income Aid.

This legislation introduces a new tax on greenhouse gas emissions from fossil fuels and industrial processes, while simultaneously repealing existing federal motor vehicle and aviation fuel excise taxes. The revenue generated will primarily fund critical infrastructure projects (70%) and provide direct grants to low-income households (10%) to mitigate the financial impact of potentially higher energy costs.
Key points
A new tax on CO2 emissions starts at $40 per ton in 2027, increasing annually, likely leading to higher costs for fuel, electricity, and manufactured goods.
Existing federal taxes on gasoline, diesel, and jet fuel are eliminated.
Massive new funding stream dedicated to repairing and building roads, bridges, airports, and coastal flood mitigation projects.
Establishes financial assistance and retraining programs for energy sector workers displaced by the transition.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3338
Sponsor: Rep. Fitzpatrick, Brian K. [R-PA-1]
Process start date: 2025-05-13
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

MARKET CHOICE Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3338.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-05-13.

What are the main provisions?

Key points include:

  • A new tax on CO2 emissions starts at $40 per ton in 2027, increasing annually, likely leading to higher costs for fuel, electricity, and manufactured goods.
  • Existing federal taxes on gasoline, diesel, and jet fuel are eliminated.
  • Massive new funding stream dedicated to repairing and building roads, bridges, airports, and coastal flood mitigation projects.
  • Establishes financial assistance and retraining programs for energy sector workers displaced by the transition.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Fitzpatrick, Brian K. [R-PA-1].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Highways and Transit.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Taxes Transport Environment