Budget & Taxes

The Grocery Affordability Act creates a new tax credit to encourage the opening and renovation of grocery stores in designated food deserts. This credit allows eligible businesses to claim up to $500,000, calculated as 30 percent of the store's basis or renovation costs, provided the location meets specific criteria regarding distance from existing stores and poverty levels. To qualify, a grocery store must sell at least 35 percent of its goods in fresh produce, meat, dairy, and baked items, while a food desert is defined as an area where many residents live more than one or ten miles away from such a store depending on whether it is in a metropolitan area. The bill applies to taxable years beginning after December 31, 2026, and requires the Treasury Secretary to work with the Department of Agriculture to determine which areas qualify for the credit.

The Geothermal Cost-Recovery Authority Act of 2026 allows the Department of the Interior to charge geothermal lease applicants and holders for administrative costs related to processing applications and monitoring activities such as drilling and site construction. Effective upon enactment, this authority applies through September 30, 2032, and covers expenses incurred during the review of permits and the inspection of exploration, drilling, and facility operations. While the Secretary of the Interior has the power to require full reimbursement, they must consider existing cost-sharing agreements and may reduce charges if full payment would cause economic hardship or hinder resource development. Any funds collected under this program must be used specifically to cover the same administrative and monitoring costs listed in the bill. Additionally, the Act requires a report to be submitted five years after enactment to assess the program's impact and recommend future updates.

The SKILL Act creates a new tax credit for employers who partner with public colleges and community colleges to develop short-term training programs lasting two years or less. To qualify, employers must be certified by their state agency for contributing to these programs through activities like co-designing curricula, offering apprenticeships, or donating equipment. The credit allows eligible businesses to claim up to $2,500 per student who earns a credential or is hired full-time after completing the program, with a total national spending cap of $500 million per year from 2027 to 2031. State agencies will distribute the available funds to employers on a competitive basis, and the law takes effect for tax years ending after December 31, 2026.

The Medicaid RAC Improvement Act of 2026 strengthens oversight of the Medicaid Recovery Audit Contractor program to better detect and recover incorrect payments. It requires the Centers for Medicare and Medicaid Services to establish clear communication rules for when state program exceptions expire and mandates detailed annual reports on audit results, including amounts recovered and underpayments. The bill also expands the program to include Medicaid managed care plans, requiring these organizations to allow audits of their claims and cooperate with recovery efforts. Additionally, the legislation directs the government to study barriers preventing states from participating in the program and to run a five-year demonstration project to increase state involvement. Finally, it clarifies that audits can review payments made up to four years prior to the current fiscal year.

The Fair Care Act of 2026 is a comprehensive legislative proposal designed to lower health care costs and improve access by modernizing health savings accounts, expanding insurance coverage options, and increasing transparency in the health care market. The bill directly affects individuals, employers, health insurance issuers, hospitals, and pharmaceutical manufacturers through provisions that allow unused premium tax credits to be deposited into savings accounts, introduce new "copper" insurance plans, and require greater price transparency for hospitals and pharmacy benefit managers. Key mechanisms include the repeal of the employer health insurance mandate, the establishment of a federal reinsurance pool for high-risk individuals, the creation of a conditional approval pathway for drugs treating rare and serious diseases, and the imposition of congressional review procedures for major Food and Drug Administration rules. Additionally, the legislation seeks to promote competition by banning anticompetitive contract terms, regulating co-pay contributions from drug manufacturers, and enforcing stricter price reporting requirements for shoppable medical procedures.

The Indigenous Students Excel through Parity Act of 2026 directs the Secretary of the Interior to conduct two studies aimed at improving funding and staffing for Bureau-funded and tribally controlled schools. The first study will examine how to update the Indian School Equalization Formula to ensure teacher and staff salaries match the highest rates found in public schools or the Department of Defense, while also considering specific needs of small and rural schools. The second study will explore potential revenue sources to bring these schools into financial parity with other school systems. Both studies must be completed within one year of the bill's enactment, and their findings will be reported to Congress and made public.

The Protecting Asylum Integrity Act establishes a mandatory fee of at least $100 for individuals undergoing credible fear interviews, which is the initial screening process for those seeking asylum or other protection from removal. This fee must be paid before the interview takes place and is designed to cover the administrative costs associated with these screenings while potentially deterring the filing of meritless claims. Half of the collected fees will be used directly by U.S. Citizenship and Immigration Services to support processing operations, while the other half will go to the general Treasury fund. The bill also includes a provision to adjust the fee amount annually for inflation starting in fiscal year 2027.

This bill, known as the Doug LaMalfa Sacramento River Basin Water Security and Reliability Act of 2026, aims to improve water management and environmental health in California's Sacramento River Basin by extending deadlines and funding specific restoration efforts. It extends the timeline for completing feasibility studies for federal water storage projects until 2041 and authorizes the federal government to contribute up to 50 percent of the costs for operating and maintaining state-led storage projects that provide public benefits like flood control and ecosystem improvements. The legislation also allocates $500 million over ten years for habitat restoration, fish passage improvements, and scientific monitoring to support endangered species such as Chinook salmon and steelhead trout. Additionally, the bill establishes a new Federal Leadership Committee to coordinate between various government agencies and state partners to accelerate the implementation of water and habitat projects. Finally, it allows water sellers to keep revenue from temporary water transfers to invest in dam safety, drought resilience, or extraordinary maintenance, provided unused funds are returned to the federal reclamation fund after a decade.

This bill prohibits the use of federal money, specifically from the Judgment Fund, to pay legal settlements for the President or to support any commissions created for his benefit. It directs $1.776 billion from the Treasury to the Department of Health and Human Services to fund the Medicaid program. The funds are intended to reverse specific eligibility and funding cuts previously enacted by another law.

The SPIRIT Act creates a new tax credit for small distilleries that use at least 90% of their ingredients from domestic sources. To qualify for a $2.35 reduction per proof gallon in their taxes, a distiller must produce no more than 100,000 proof gallons annually and ensure their production is primarily based on U.S.-harvested materials. The law also includes a recapture provision that requires distilleries to pay back the credit if they are found to be ineligible after receiving it. These financial incentives are designed to support smaller producers who rely on American agricultural ingredients, and the changes will take effect for spirits produced after December 31, 2025.