Make Billionaires Pay Their Fair Share Act
- Bill Number
- S. 3956
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-02: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-04-01T19:43:24Z
AI-Generated Summary
Purpose of the Legislation
The "Make Billionaires Pay Their Fair Share Act" (S. 3956) aims to fund expanded social programs by imposing a wealth tax on high-net-worth individuals and trusts. It seeks to reduce income inequality, improve access to health care, child care, housing, education, and long-term care services, while enhancing workforce quality in key sectors like teaching and direct care.
Key Provisions
- Wealth Tax (Title I):
- Imposes a 5% annual tax on the net value of assets exceeding $1 billion (adjusted for inflation after 2026) for individuals, trusts, and married couples treated as one taxpayer.
- Includes children's assets under age 18; applies to nonresidents only for U.S.-situated assets; imposes a 60% exit tax on "covered expatriates" renouncing citizenship.
- Requires IRS to create a wealth registry, mandate asset reporting, and audit at least 50% of affected taxpayers annually; funds enforcement with 1% of tax revenue.
- Effective for calendar years after enactment.
- Affordability Rebates (Title II):
- Provides one-time rebates in 2026: $3,000 per individual ($6,000 for joint filers) plus $3,000 per dependent, based on 2024 or 2025 tax returns.
- Administered via existing recovery rebate mechanisms, with phase-outs for higher incomes.
- Health Care Provisions (Title III):
- Repeals certain health-related provisions from prior reconciliation laws (e.g., Public Law 119-21), except for specific rural health and other targeted programs.
- Expands premium tax credit eligibility under the Affordable Care Act by removing the 400% federal poverty level cap and adjusting contribution percentages (0-8.5% of income on a sliding scale) for taxable years after 2025.
- Medicare Dental, Hearing, and Vision Expansion (Title IV):
- Adds coverage for dental/oral health (e.g., exams, cleanings, fillings, dentures starting 2027), hearing aids/exams (starting 2028), and vision services (e.g., routine eye exams every 2 years starting 2028) under Medicare Part B.
- Establishes fee schedules based on median fees (70% of national median, adjusted for geography and productivity); limits frequency of services; provides incentives for rural providers.
- Phases in premium impacts over 2027-2031 to avoid abrupt increases; appropriates $1.77 billion for implementation through 2036.
- Housing Trust Fund (Title V):
- Authorizes $85.647 billion annually for fiscal years 2026-2035 to the National Housing Trust Fund for affordable housing development and preservation.
- Affordable Child Care Entitlement (Title VI):
- Creates a federal entitlement program for high-quality child care and early learning for children birth through age 5 (not yet in kindergarten) from families up to 250% of state median income.
- Provides 90% federal matching for direct services (via grants/contracts/certificates), FMAP for quality/supply improvements (5-10% of funds), and 50% for administration; prioritizes underserved groups (e.g., low-income, disabled, homeless children).
- Requires states to develop cost models, tiered quality systems, wage ladders (living wages equivalent to elementary educators), and sliding-scale copays (0-7% of income); bans supplanting existing funds.
- Appropriates ongoing funds starting FY2026, plus $20 billion for grants to non-participating localities and Head Start expansions.
- Minimum Teacher Salary (Title VII):
- Provides grants to states (starting $14.5 billion in FY2027, inflation-adjusted) to ensure public school teachers earn at least $60,000 starting base salary (rising with experience to match regional college-educated professionals).
- States must adopt salary schedules or minimums within 3 years; funds 50% via targeted formulas based on prior ESEA allocations.
- Reserves portions for outlying areas, Bureau of Indian Education, and administration; requires states to increase per-pupil spending without raising class sizes or reducing planning time.
- Home and Community-Based Services (HCBS) Investments (Title VIII):
- Awards $130 million in planning grants to all states (by 2027) for HCBS improvement plans assessing access, rates, workforce, and long-term care spending.
- Increases Medicaid FMAP by 8% (up to 95%) for HCBS in participating states, plus 2% more for self-directed care models; requires nonsupplanting, maintenance of effort, access improvements (e.g., personal care coverage, caregiver supports), and workforce enhancements (e.g., rate updates every 3 years).
- Appropriates $40 million for federal oversight, $25 million for quality measures, and permanently extends spousal impoverishment protections and Money Follows the Person demonstration.
Significant Changes to Existing Law
- Amends the Internal Revenue Code to add a new wealth tax subtitle, non-deductible from income taxes, with unique enforcement (e.g., asset registry, mandatory reporting).
- Modifies Affordable Care Act premium credits by eliminating income caps and revising contribution tiers.
- Expands Medicare Part B to include previously excluded dental, hearing, and vision benefits, with new payment systems and exclusions (e.g., cosmetics).
- Establishes a new child care entitlement under HHS, building on but exceeding the Child Care and Development Block Grant Act with mandatory coverage and quality mandates.
- Introduces teacher salary grants under a new ESEA-linked program, requiring state plans for minimum wages and equitable distribution.
- Enhances Medicaid HCBS FMAP incentives and permanently extends temporary protections (e.g., spousal rules from ACA, rebalancing demo from 2005 DRA), shifting long-term care toward community settings.
Potential Impacts
- Government Agencies: Increases IRS workload for wealth tax administration and audits; boosts HHS/CMS responsibilities for Medicare expansions, child care entitlements, and HCBS oversight; provides dedicated funding streams (e.g., $85B/year for housing, ongoing for child care/teachers).
- Citizens: High-net-worth individuals face new taxation (potentially raising billions annually); low- and middle-income families gain rebates, subsidized child care (covering ~12 months eligibility without reverification), expanded Medicare benefits (reducing out-of-pocket costs for seniors), and affordable housing/education improvements; direct care workers and teachers see wage boosts and training.
- International Relations: Minimal direct impact, though the expatriate exit tax could deter wealthy non-citizens from renouncing U.S. ties; wealth tax on global assets may affect cross-border wealth flows.
Main Stakeholders Affected
- Wealthy Individuals/Trusts: Primary taxpayers under the wealth tax (applicable to ~100,000 entities initially).
- Low-Income and Working Families: Beneficiaries of rebates, child care, housing, and health expansions (e.g., children under 6, Medicare enrollees ~65M).
- Seniors and Disabled Individuals: Gain HCBS access, Medicare add-ons, and spousal protections, reducing institutional care reliance.
- Educators and Child Care Providers: Teachers (~3M) receive salary floors; direct care workers (~4M) get rate increases and training.
- States/Local Governments: Receive grants but must match funds, develop plans, and maintain efforts; outlying areas/Tribes get targeted support.
- Health/Child Care Providers: Expanded reimbursements but new quality/licensing requirements.
Notable Legal, Constitutional, or Political Implications
- Legal: Wealth tax raises direct tax constitutionality questions (historically upheld as excise taxes, but challenges possible under apportionment rules); expands Medicaid/Medicare without new waivers, potentially facing state opt-out suits; child care/teacher mandates require state compliance for federal funds, risking preemption claims.
- Constitutional: No overt conflicts, but expatriate tax could implicate citizenship rights (14th Amendment); self-directed care provisions protect labor organizing (1st/5th Amendments).
- Political: Progressive revenue (wealth tax) funds social safety net expansions, likely polarizing along partisan lines; encourages state-federal partnerships but imposes benchmarks (e.g., 50% HCBS spending shift), with sanctions for non-compliance; permanent extensions lock in prior temporary policies, reducing future fiscal cliffs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-03-02: Read twice and referred to the Committee on Finance.
- 2026-03-02: Introduced in Senate
Bill Versions
- Make Billionaires Pay Their Fair Share Act — issued 2026-03-02 — PDF (154 pages)