Budget & Taxes

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.

The SCALE Act of 2026 creates a new grant program to help states and eligible Indian tribes improve soil health and wildlife habitat on agricultural lands. Between fiscal years 2027 and 2031, the Department of Agriculture will provide up to $10 million annually to recipients that meet specific performance standards, with a total funding pool of $250 million. To receive these funds, applicants must submit a plan detailing their goals and agree to match federal dollars with their own state or tribal funds, unless they cannot provide the full match. The law also sets strict rules on how the money can be spent, limiting administrative costs and prohibiting conditions that would force changes to existing local programs. Recipients must submit annual audit results and could be disqualified from future funding if they fail to comply with the grant terms.

The Keep Kids in School Act creates a federal grant program to help public schools reduce chronic absenteeism and improve safety for students. The Department of Education will provide funds to states, which will then distribute money to local school districts for specific interventions like hiring counselors, offering teacher stipends for home visits, and covering transportation costs. The bill defines chronic absenteeism as missing 10 percent or more of school days and prioritizes funding for states with the highest rates of absenteeism among vulnerable student populations. Additionally, the act requires the Comptroller General to conduct a study on effective methods for reducing absenteeism and improving student well-being, with findings reported to Congress and the Education Department.

The Reimbursable Screening Services Program Extension Act of 2026 extends and expands a federal program that reimburses states for conducting aviation security background checks. The bill directly affects federal and state agencies responsible for vetting airline employees by allowing the program to operate through fiscal year 2031 instead of ending in 2026. Additionally, it increases the maximum number of reimbursable screening services that can be provided annually from eight to 14. This legislation aims to maintain and slightly increase the capacity for background investigations without changing the underlying requirements for who must be screened.

This bill proposes to change federal tax rules so that eligible organizations do not have to pay income tax on micro-grants they receive for food security. It directly affects the specific entities defined by the Agriculture Improvement Act of 2018 that distribute these funds. The key provision adds a new section to the Internal Revenue Code to explicitly exclude these financial assistance amounts from the organizations' gross income. This change would allow the organizations to retain the full value of the grants without using part of the funding to cover potential tax liabilities. The rule would apply to any grants received after the bill is enacted into law.

The Transboundary Aquifer Assessment Program Act extends the funding and authority for a federal program that studies shared underground water sources between the United States and Mexico. This legislation adds Arizona to the list of states eligible for the program, while also updating the funding period to cover fiscal years 2026 through 2036. The bill directly affects the federal agencies responsible for managing water resources and the states of New Mexico, Texas, and Arizona by ensuring continued support for their cross-border aquifer assessments.

This bill abolishes the Anti-Weaponization Fund, a financial reserve created by the Attorney General during the Trump v. Internal Revenue Service legal case. It also declares an order issued on May 19, 2026, regarding the release of certain claims as invalid and without effect. The legislation directly impacts the Department of Justice by removing this specific fund and reversing the associated administrative directive.

This bill creates a new type of tax-advantaged savings account called a "home savings account" designed to help individuals save for housing expenses. It allows taxpayers to deduct up to $10,000 annually from their income for cash contributions made to these accounts, with a higher limit of $20,000 for married couples filing jointly. Money withdrawn from the account is tax-free only if it is used to buy a principal residence or pay down the mortgage on that home; otherwise, the withdrawal is taxed as income and subject to a 20% penalty. The legislation also permits a one-time transfer of funds from an existing retirement plan into a new home savings account and includes specific rules for handling excess contributions, account transfers due to divorce, and inheritance after the account holder's death.