Budget & Taxes

The You Earned It, You Keep It Act changes Social Security tax treatment by setting a $250,000 threshold for earnings subject to Social Security taxes. It modifies how income above this threshold is treated for Social Security purposes and adjusts benefit calculations to include earnings above $250,000. The bill would directly affect high-wage earners making over $250,000 annually, changing how their Social Security taxes are calculated. The bill also includes provisions to ensure Social Security trust funds are not negatively impacted by these changes. These changes would apply to wages paid in calendar years after 2025 and to taxable years beginning after December 31, 2025.

This bill prevents NASA from conducting layoffs until Congress passes the full 2026 budget. It blocks NASA from using standard federal workforce reduction procedures (like those in Title 5 of the U.S. Code) until the agency's fiscal year 2026 funding is fully enacted. The moratorium directly affects NASA employees by protecting their jobs during the budget process. It applies automatically and adds to existing personnel rules, ensuring no layoffs occur while the budget remains unresolved.

This bill requires states receiving Temporary Assistance for Needy Families (TANF) funds to spend at least 25% of their annual grant amount on work-related services. Specifically, states must use these funds for job training, education programs, apprenticeships, short-term benefits, and case management to help individuals create employment plans. The requirement applies to all states administering TANF programs and takes effect October 1, 2026. It directly affects TANF recipients by prioritizing workforce development support through mandatory state spending.

This bill repeals multiple tax credits for renewable energy projects, including solar, wind, and clean transportation fuels, which currently provide financial incentives to businesses. It directly affects companies that claim these credits, such as renewable energy developers and manufacturers, by eliminating their eligibility for these tax benefits starting in 2025. Key provisions remove specific sections of the tax code (like Sections 45, 45Q, and 48) and adjust related references to reflect the repeal. The changes apply to taxable years beginning after December 31, 2024, with no new provisions added - only the removal of existing credits.

This bill imposes a $550 tax on each heavy battery module (over 1,000 pounds) and a $1,000 tax on each electric vehicle sold by manufacturers or importers. It excludes hybrid vehicles from the tax definition, as they use both internal combustion engines and rechargeable batteries. The collected revenue would be transferred to the Highway Trust Fund, which finances road and highway maintenance. The tax applies to sales after December 31, 2025.

# Summary of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2026 This comprehensive appropriations bill allocates funding for the Department of the Interior, Environmental Protection Agency, and related agencies for fiscal year 2026. Key provisions include: 1. **Major Funding Allocations**: - Significant funding for the Indian Health Service, National Park System, and environmental programs - Specific allocations for National Endowment for the Arts and Humanities - Funding for the Smithsonian Institution, National Gallery of Art, and other cultural institutions 2. **Key Restrictions and Prohibitions**: - Ban on using funds for activities promoting public support/opposition to pending legislation - Prohibition on using funds for certain types of mineral leasing within National Monuments - Restrictions on using funds for certain environmental regulations (e.g., greenhouse gas reporting from manure management) - Ban on using funds for certain types of ammunition regulation 3. **Program Extensions**: - Extension of various programs through 2026 (e.g., Forest Service Facility Realignment, Tribal Leases, Alaska Native Regional Health Entities) - Extension of the Alaska Native Vietnam Era Veterans Land Allotment Program 4. **Administrative Provisions**: - Requirements for quarterly reporting on fund balances - Restrictions on reprogramming funds without committee approval - Requirements for posting reports on agency websites - Specific guidelines for grant awards and cancellations 5. **Rescissions and Repurposing**: - Permanent rescission of $41 million from Environmental Protection Agency Buildings and Facilities - Permanent rescission of $50 million from John F. Kennedy Center Capital Repair - Repurposing of $764.5 million from unobligated balances for wildland fire management The bill contains numerous specific provisions governing how funds may be used across various programs, with particular attention to environmental protection, cultural institutions, Native American health and land management, and forest management. It includes numerous restrictions on fund usage and specific requirements for reporting and transparency.

This bill creates a tax credit for U.S. manufacturers producing rare earth magnets. It provides $20 per kilogram for magnets made in the U.S., increasing to $30 per kilogram if at least 90% of component rare earth materials (like neodymium or cobalt) are also sourced domestically. The credit phases out after 2034 (70% in 2035, 35% in 2036-37, and 0% after 2037) and restricts credits if materials come from "non-allied foreign nations" (with limited exceptions until 2027). The credit applies to taxable years beginning after December 31, 2024, and requires magnets to be produced in regular business operations.

The EITC Lookback Act (HR 2898) allows low-income workers with fluctuating income to use their previous tax year's earnings when calculating their Earned Income Tax Credit (EITC), instead of their current year's lower earnings. It directly affects qualifying taxpayers whose income drops from one year to the next, such as those facing temporary job loss or reduced hours. The key provision lets eligible individuals choose to substitute their prior year's earned income for the current year's in determining their EITC amount. This change applies to tax years beginning after December 31, 2024, providing potential tax relief for workers experiencing income volatility.

This bill prevents the National Oceanic and Atmospheric Administration (NOAA) from implementing layoffs until full funding for its 2026 budget is secured. It bans reductions in force under specific federal personnel rules until Congress enacts the full fiscal year 2026 appropriations. The law directly affects all NOAA employees covered by those federal personnel provisions. The key mechanism is a mandatory funding deadline (2026 budget enactment) that triggers the layoff moratorium, ensuring workforce stability during budget negotiations.

S 2578, the "Strengthening the Rule of Law in the Brazilian Amazon Act," directs U.S. agencies to support Brazil in combating criminal networks driving deforestation and environmental harm in the Amazon. It requires the U.S. International Development Finance Corporation to identify sustainable economic opportunities and investment risks in the region, and authorizes $10 million annually (2025-2028) for U.S. agencies to provide technical assistance, capacity building, and support for sustainable livelihoods and Indigenous rights in Brazil. The bill mandates reports to Congress on drivers of deforestation (including Chinese involvement in illicit resource extraction), progress on disrupting criminal networks, and U.S. efforts to influence international financial institutions to oppose loans exacerbating deforestation. It directly affects U.S. agencies (State, USAID, Treasury) and Brazilian authorities working to address illegal logging, mining, wildlife trafficking, and associated corruption.