Budget & Taxes

This bill requires Congress to pass the annual budget resolution and all funding bills by October 1 each year. If Congress misses this deadline, members of Congress (excluding the Vice President) would not receive salary for the period of non-compliance, and this pay would not be retroactively issued. The Budget Chairs of each chamber would determine compliance and certify pay withholding. The law takes effect on September 29, 2027.

This bill targets tax avoidance tactics known as "basis shifting" in partnerships involving related parties. It requires partners to recognize gain when receiving property distributions from partnerships where related parties are involved, preventing them from artificially increasing the tax basis of partnership assets to reduce future taxable gains. The law defines "applicable partnerships" broadly (including any with related-party transactions) but excludes qualifying small businesses meeting gross receipts tests. Key provisions mandate that basis adjustments for distributed property must align with recognized gain, and increase penalties for understatements related to these transactions. It directly affects partnerships engaging in related-party distributions that previously allowed basis-shifting to defer or avoid taxes.

The American Innovation Act (S 1276) authorizes multi-year funding for key federal science and technology agencies, including the National Science Foundation, Department of Energy's Office of Science, Department of Defense science programs, National Institute of Standards and Technology, and NASA's Science Mission Directorate. It sets specific annual funding levels from fiscal years 2026 through 2035, with automatic annual increases starting in 2036 based on the Consumer Price Index to adjust for inflation. The bill also exempts these appropriations from automatic budget cuts (sequestration) under the Balanced Budget Act. This funding directly affects the operations and research capabilities of these federal agencies.

Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025 This bill establishes a new investment tax credit in the amount of 30% of the basis of any hydropower improvement property. The bill defines hydropower improvement property as property that adds or improves fish passage at a qualified dam; maintains or improves the quality of the water retained or released by a qualified dam; promotes downstream sediment transport and habitat maintenance; upgrades, repairs, or reconstructs a qualified dam to meet safety and security standards; improves public uses of, and access to, public waterways impacted by a qualified dam; removes an obsolete river obstruction; or places into service an approved remote dam. Further, written approval for hydropower improvement property must be obtained from the Federal Energy Regulatory Commission or state or local officials prior to January 1, 2035. The bill also allows an election to claim the investment tax credit for qualified progress expenses for some types of hydropower improvement property in advance of such property being placed into service. Any investment tax credit amount claimed for qualified progress expenses reduces the amount of the investment tax credit that may be claimed once the hydropower improvement property is placed into service.  The bill authorizes certain entities, including tax-exempt and governmental entities, to treat the investment tax credit for hydropower improvement property as a payment of tax and receive a refund of any overpayment (also known as elective pay).  Finally, the investment tax credit for hydropower improvement property may be transferred (i.e., sold).

This bill provides federal funding for transportation projects in cities hosting major international sporting events like the Olympics, Paralympics, or FIFA World Cup. It authorizes up to $50 million annually for grants to states, tribes, and local governments (or their planning organizations) to fund permanent transportation infrastructure and planning within 100 miles of the event site, excluding temporary facilities. The bill also mandates studies by the Commerce Department to examine how hosting these events affects international and domestic travel, tourism business revenue, and employment, with reports due 180 days after the events conclude. These provisions directly support cities bidding to host or already hosting such events, focusing on long-term transportation needs and economic impact analysis.

This bill creates a tax incentive program to increase ownership of broadcast stations by women and minorities (defined as "socially disadvantaged individuals"). It establishes an FCC certificate program for qualifying sales of broadcast stations that result in ownership by these groups, requiring at least 50% ownership and 2-year minimum holding period. The bill provides tax benefits including nonrecognition of gain or loss for qualifying transactions and a tax credit for contributions to organizations training socially disadvantaged individuals in broadcast management. The FCC must report to Congress biennially on progress toward increasing diversity in broadcast ownership, based on data collected through Form 323.

This bill reauthorizes two existing federal diabetes programs through 2027. It provides $160 million annually for fiscal years 2026 and 2027 for the Special Diabetes Program for Type I Diabetes (serving people with Type I diabetes) and the Special Diabetes Program for Indians (serving Native American communities through Indian Health Services). A final $40 million is allocated for October-December 2027 for both programs, with all funds remaining available until expended. The bill extends current funding levels without changing program eligibility or structure.

This bill increases government support for crop insurance premiums for certain farm insurance plans. It raises the government's share to 77% for higher coverage levels and 68% for lower coverage levels under revenue or yield protection plans using enterprise or whole-farm units - up from previous rates. It also adjusts coverage requirements (lowering the minimum from 14% to 10% for some options) and increases premium subsidies for supplemental coverage from 65% to 80%. The bill requires a study on expanding supplemental coverage to larger counties, with a report due within a year of enactment.

This bill adds a new tax provision (Section 139J) to the Internal Revenue Code, excluding interest income from certain rural and agricultural loans from taxable income for qualifying lenders. It directly affects banks, insurance companies, and farm credit entities that provide loans secured by rural or agricultural property (including qualifying single-family homes in rural areas), while excluding loans to foreign adversary entities (like those linked to China, Russia, or Iran). The law requires lenders to report on how this tax exclusion impacts loan interest rates, with a Treasury report due to Congress within five years. The policy change aims to reduce lenders' tax burden on these specific loans, potentially lowering costs for borrowers in rural communities.

This bill amends the Water Resources Research Act of 1984 to include the "growing artificial intelligence industry" in its definition of private sector collaboration. It authorizes $16 million annually for fiscal years 2026-2029 for water research institutes, with 20% of these funds required for research on interstate water issues. The bill specifies that research must address regional or interstate water problems, align with joint priorities of the Secretary and institutes, or respond to Congress-identified interstate water concerns. It directly affects federal water research institutes, the Department of the Interior (via the Secretary), and federal funding allocations for water-related scientific projects. The changes focus on structuring funding distribution and expanding research scope to include emerging sectors like AI.