New Carbon Fee Starts at $75/Ton in 2027, Funds Quarterly Rebates and Climate Finance Bank

The America's Clean Future Fund Act is a massive, two-part policy overhaul designed to aggressively tackle climate change by fundamentally restructuring how the U.S. economy prices carbon emissions and finances clean infrastructure. It creates a brand-new federal agency and institutes a national carbon fee that directly funds quarterly cash rebates for most households.

The $75/Ton Question: What the Carbon Fee Means for Your Wallet

The centerpiece of this bill is the creation of a federal Carbon Fee (Sec. 3), which starts at $75 per metric ton of CO2 equivalent (CO2-e) on January 1, 2027. This fee is levied on the producers or importers of covered fuels—crude oil, natural gas, and coal—and also on large industrial emitters (those putting out over 25,000 metric tons of CO2 or methane annually) from non-fuel sources like process emissions. The fee is designed to increase annually by at least $10 plus inflation, and potentially faster if the country isn't hitting its mandated emission reduction targets (45% net reduction by 2030, 100% by 2050).

This is where it gets real for everyday people. When producers pay this fee, they will pass those costs down the supply chain, meaning you’ll likely see higher prices for gasoline, natural gas heating, and anything manufactured using carbon-intensive energy. However, the bill attempts to offset this cost through the America's Clean Future Fund Stimulus (Sec. 5).

The Quarterly Rebate: Getting Paid to Go Green

The revenue generated by the carbon fee doesn't go into the general treasury; it funnels into a dedicated fund, and a large chunk of it is returned to the public as a quarterly stimulus payment (Sec. 4, Sec. 5). Starting in the last quarter of 2027, eligible individuals—anyone over 18 with a valid SSN—will receive a prorated share of the rebate pool every three months.

Think of it as a social dividend. If you’re a single filer making under $75,000 or a joint filer under $150,000, you get the full payment. For those above those income thresholds, the payment phases out at a rate of 5% for every $1,000 over the limit. Crucially, these payments are not counted as taxable income and do not affect eligibility for federal, state, or local benefit programs. This means for most middle- and lower-income households, the quarterly rebate is designed to cover or exceed the increased cost of goods due to the carbon fee, making the transition financially neutral or even beneficial.

The Climate Change Finance Corporation: A New Investment Bank

Beyond rebates, the fee revenue funds a new, independent government agency: the Climate Change Finance Corporation (C2FC) (Sec. 2). This agency is essentially a federal green bank tasked with financing projects that are too risky for traditional private investors, focusing on low-emission energy deployment, climate-resilient infrastructure (like building roads higher in flood zones), and clean transportation.

For workers and businesses, two provisions in the C2FC's mandate are key. First, all projects funded by the C2FC must pay workers the local prevailing wage, ensuring these new jobs are high-quality. Second, there’s a strong “Buy America” rule requiring all iron, steel, and manufactured goods used in these projects to be domestically produced, though the Board can waive this if it increases project costs by more than 25% or if domestic goods aren't available.

Priority for Impacted Communities

Both the C2FC and a separate Transition Assistance grant program (Sec. 7) prioritize communities that have historically been hit hardest by pollution or are dependent on carbon industries. The bill mandates that at least 40% of C2FC grant money must go toward benefiting these prioritized communities, which include low-income areas, environmental justice communities, and places facing high climate risk. The transition grants specifically target areas hurt by economic shifts away from fossil fuels, providing funding for job training, worker assistance, and site cleanup (like plugging abandoned oil wells).

Farming and Trade Adjustments

Farmers and ranchers also get a dedicated stream of funding (Sec. 6). The Secretary of Agriculture will provide transition payments to producers who adopt measurable, verifiable, climate-smart practices to reduce greenhouse gas emissions. This is essentially a government-backed program to help the agricultural sector develop carbon credits.

Finally, to keep U.S. manufacturers competitive, the bill introduces a Carbon Border Adjustment (Sec. 3). If a U.S. company exports a carbon-intensive product, they get a refund for the carbon fees paid during its production. Conversely, importers of similar products must pay an equivalency fee, ensuring foreign goods face the same carbon costs as domestic ones. This aims to prevent U.S. jobs from moving overseas simply to avoid the new federal fee.