Budget & Taxes (Revenue)

This bill proposes a constitutional amendment requiring the federal government to balance its annual budget, meaning spending cannot exceed revenue unless overridden by a two-thirds vote in both House and Senate. It also caps annual spending at 18% of GDP unless a similar two-thirds vote approves an exception. The amendment mandates the President submit a balanced budget proposal each year and requires a two-thirds vote to pass new taxes or increase tax revenue. These rules would directly affect all federal spending decisions, including defense, social programs, and debt management, with limited exceptions for declared wars or national security threats.

HR 6335, the "Education Not Endless Scrolling Act," imposes a 50% tax on large digital advertising companies (those with over $2.5 billion in annual U.S. digital ad revenue) starting in 2026. The tax revenue funds three new trust funds: one for local journalism support, one for individual tutoring programs in schools, and one for career and technical education initiatives. These trust funds will distribute one-third of the collected tax revenue to directly support journalism entities, school tutoring programs, and career education programs without requiring new annual appropriations. The bill’s key mechanism is redirecting tax revenue from major digital ad platforms to specific education and journalism programs, effective for taxes paid after December 31, 2025.

S 173 increases taxes on aviation fuel used by private jets and non-commercial aircraft, imposing a rate of 35.9 cents plus $1.641 per gallon (compared to 4.3 cents for commercial aviation), with annual inflation adjustments starting in 2026. It creates exceptions for emergency uses like medical evacuations or disaster response, and eliminates an existing exemption for certain agricultural aviation. The additional tax revenue funds a new "Clean Communities Trust Fund" to support air quality monitoring, expand public transit infrastructure near airports, and improve transportation in disadvantaged communities - requiring at least 50% of funds to target areas disproportionately impacted by air pollution. This bill directly affects private jet operators and aviation fuel suppliers while directing resources to environmental and transit projects in low-income communities.

HR 7648, the Local Taxpayer Protection Act of 2026, provides federal grants to municipalities hosting or developing U.S. Immigration and Customs Enforcement (ICE) processing or detention facilities. The bill directly affects these municipalities by covering their lost property tax revenue and costs for public utilities (like water, electricity, and sewer systems) used by the ICE facilities. Grants, capped at the prior year's combined lost revenue and utility costs, are for 5 years with renewal options, and require applications detailing financial need, cost-benefit analysis, and other funding sources. Funds must offset specific costs, with a goal of making the facilities self-sufficient for utility use over time.

HRES 926, the RESPECT Resolution, is a non-binding House resolution urging states to adopt equity-focused cannabis policies. It recommends specific actions to address racial disparities, including eliminating criminal penalties for cannabis possession, creating fairer business licensing (prioritizing communities harmed by past enforcement), automatically expunging cannabis convictions, and reinvesting tax revenue in affected communities. The resolution also calls for the U.S. to advocate at the United Nations for cannabis descheduling from international drug treaties. It directly affects states, localities, and communities disproportionately impacted by cannabis prohibition, particularly communities of color.