Massive Bill Imposes $35/Ton Carbon Tax, Repeals Gas Taxes, and Bans House Members from Trading Stocks

This isn’t just a bill; it’s a legislative kitchen sink—a 12-Title monster that touches everything from the price of gas to who gets to vote in a primary, and even what investments your representatives can hold. The core of this legislation is the sprawling MARKET CHOICE Act (Title I), which aims to fundamentally restructure how the U.S. pays for infrastructure and addresses climate change, but the bill also manages to squeeze in major changes for veterans, cancer research, and congressional ethics.

The biggest change is the introduction of a federal tax on greenhouse gas emissions, starting at $35 per metric ton of carbon dioxide equivalent in 2027. This tax applies to fossil fuels (like coal, oil, and natural gas) when they are produced or imported, as well as emissions from certain industrial processes (like cement and steel manufacturing). If you’re wondering who pays, the answer is: eventually, you do. This cost will be passed down the supply chain, likely affecting everything from your utility bill to the price of that new widget you buy. The tax rate isn't fixed; it increases annually by 5% plus inflation, and if national emissions targets are missed, it jumps an extra $4/ton.

The Great Tax Swap: Gas Taxes Out, Carbon Tax In

To soften the blow of the new carbon tax, Title I also repeals the existing federal motor vehicle and aviation fuel taxes starting after December 31, 2025 (Sec. 10211). This is a massive shift. For decades, those fuel taxes have been the primary way we fund the Highway Trust Fund. The bill replaces that revenue stream by diverting 70% of the new carbon tax revenue into a new RISE Trust Fund (Rebuilding Infrastructure and Solutions for the Environment), which then funnels money directly into the Highway Trust Fund (Sec. 10202).

What this means for your daily life: You might see a slight dip in the tax you pay at the pump, but it will be immediately replaced by the new carbon tax baked into the cost of the fuel itself. The upside is that infrastructure funding now has a dedicated, potentially massive, new source of money—though it’s tied directly to the cost of emissions. The downside is that this new system is complex, and the cost of energy production will almost certainly rise.

EPA’s Climate Authority Put on Ice

Here’s the catch that makes this whole climate package controversial: Title I puts a major moratorium on the EPA’s ability to regulate the greenhouse gas emissions that are being taxed (Sec. 10301). The EPA Administrator is banned from issuing or enforcing any new rule under the Clean Air Act that limits these emissions based on their warming effect. This ban lasts until January 1, 2039. Essentially, if the fuel or its emissions are taxed, the EPA can’t regulate them for climate purposes. This is a huge win for industries that fear regulatory burden, but it means the primary federal tool for addressing climate change (the Clean Air Act) is effectively sidelined for the next 15 years in favor of a market-based tax.

The Border Tax and the Global Market

To prevent U.S. manufacturers from moving production overseas to avoid the new carbon tax (a phenomenon called “carbon leakage”), the bill establishes a Border Greenhouse Gas Adjustment (Sec. 10102). This is a border tax: imported goods from carbon-intensive sectors will be taxed to match the costs U.S. producers pay, and U.S. exporters will get a rebate for the carbon tax they paid domestically. This is designed to keep U.S. industry competitive, but setting up this system is incredibly complex and could easily lead to trade disputes with other countries.

Congress Gets a Financial Time-Out

Shifting gears completely, Title V addresses congressional ethics by restricting what Members of the House of Representatives can own or trade (Sec. 501). Under this new rule, House Members are banned from owning or trading most individual stocks, security futures, or commodities. They can still hold widely held mutual funds, U.S. Treasury bonds, state/local bonds, and their Thrift Savings Plan (TSP) investments. This is a significant restriction on the personal financial freedom of elected officials, aimed at eliminating conflicts of interest and the appearance of insider trading.

Fast-Track Debt Commission

Title IV establishes a National Bipartisan Fiscal Commission composed of 20 members, including members of Congress (Sec. 401). This group is tasked with finding ways to address the national debt and deficit. The concerning part isn't the commission itself, but the process that follows: any legislative package the President submits based on the commission’s recommendations gets fast-track consideration in Congress (Sec. 402). This means the bill bypasses the typical committee process, debate is severely limited, and no amendments are allowed. This is a powerful mechanism that concentrates agenda-setting power and limits the ability of regular members of Congress to shape major fiscal policy.

Other Key Impacts for Everyday People

• Cancer Research: The KO Cancer Act (Title II) mandates a significant boost to the National Cancer Institute (NCI) budget, appropriating an amount equal to 25% of the NCI’s 2024 funding for each fiscal year from 2026 through 2030 (Sec. 202). It also requires a study on the root causes of cancer drug shortages.
• Veterans: The Justice for ALS Veterans Act (Title XII) extends increased dependency and indemnity compensation (DIC) to surviving spouses of veterans who died from ALS, waiving the standard length-of-disability requirement, provided the couple was married for at least eight years (Sec. 1202).
• Voting: The Let America Vote Act (Title VIII) requires states to allow unaffiliated voters to participate in primary elections for federal, state, and local offices. However, it also explicitly prohibits noncitizens from voting in any publicly funded election and ties federal election funding to this rule (Sec. 802, 803).
• School Safety: The SAFER Schools Act (Title VII) mandates a review and subsequent final rule requiring schools that receive federal funding to install or modify reinforced doors for better security, backed by $100 million in authorized funding for upgrades (Sec. 702).