National Resilience and Recovery Fund Act
- Bill Number
- H.R. 5983
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-11-08: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- Last Updated
- 2026-01-07T09:05:39Z
AI-Generated Summary
Purpose This legislation establishes a dedicated trust fund to finance federal programs that enhance community resilience to disasters and support recovery efforts. It creates new and expanded excise taxes on the oil and gas industry to generate revenue for these initiatives.
Key Provisions
- Creates the National Resilience and Recovery Fund within the Treasury, funded by three main revenue sources: a 13% tax on the removal price of crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico (with a credit for federal royalties paid); an additional 10-cent-per-barrel tax on crude oil and petroleum products; and a windfall profits tax equal to 50% of the amount by which the quarterly average Brent crude oil price exceeds the 2015–2019 average (adjusted for inflation), applied to large producers exceeding 300,000 barrels per day.
- Expands the definition of "crude oil" for tax purposes to explicitly include bitumen, tar sands, and oil derived from oil shale, and grants the Treasury Secretary regulatory authority to include other fuel feedstocks or products if they pose significant spill risks.
- Directs fund expenditures, subject to appropriations, to the Federal Emergency Management Agency (FEMA) for the Hazard Mitigation Grant Program, the Building Resilient Infrastructure and Communities program, the Safeguarding Tomorrow Revolving Loan Fund, and the Flood Mitigation Assistance program.
- Includes administrative rules for tax collection, record-keeping, and quarterly or annual filings, with most provisions effective January 1, 2025, or upon enactment.
Significant Changes to Existing Law
- Adds two new chapters to the Internal Revenue Code (Chapter 56 for windfall profits and Chapter 57 for Gulf of Mexico severance) and modifies existing sections (4611, 4612, and 164) to create and direct the new taxes.
- Broadens the taxable base for environmental excise taxes by redefining crude oil and allowing future regulatory expansions.
- Makes the new Gulf of Mexico tax deductible for income tax purposes, consistent with certain other excise taxes.
Potential Impacts
- Government agencies: Provides FEMA with a dedicated revenue stream for resilience programs, potentially reducing reliance on general appropriations during disaster events.
- Citizens: May increase costs for energy products if producers pass taxes forward, while offering broader public benefits through improved infrastructure and reduced disaster damages.
- International relations: Could affect oil import economics and global energy markets due to taxes on imported petroleum, though the primary focus remains domestic production and Gulf leases.
Main Stakeholders Affected
- Large oil and gas companies (particularly those extracting from the Gulf of Mexico or exceeding production thresholds).
- FEMA and communities eligible for its hazard mitigation and flood assistance programs.
- The Department of the Treasury and Internal Revenue Service, responsible for tax administration and fund management.
- Energy consumers and taxpayers indirectly through potential price changes and disaster preparedness improvements.
Notable Legal, Constitutional, or Political Implications
- Introduces industry-specific excise taxes tied to commodity prices, raising questions about the scope of Congress's taxing power under the Constitution, similar to prior windfall profit tax efforts.
- Relies on appropriations acts for fund expenditures, preserving congressional oversight while creating a dedicated financing mechanism.
- May prompt legal challenges regarding the definition expansions or aggregation rules for related entities under tax code provisions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Stansbury, Melanie A. [D-NM-1]
Cosponsors (6)
Rep. Balint, Becca [D-VT-At Large], Rep. Huffman, Jared [D-CA-2], Rep. Carson, André [D-IN-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Goldman, Daniel S. [D-NY-10], Rep. Jayapal, Pramila [D-WA-7]
Recent Actions
- 2025-11-08: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- 2025-11-07: Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-11-07: Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-11-07: Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-11-07: Introduced in House
- 2025-11-07: Introduced in House
Bill Versions
- National Resilience and Recovery Fund Act — issued 2025-11-07 — PDF (16 pages)