Bill · S. 25· Senate(119-S-25)
Polluters Pay Climate Fund Act of 2025
- Introduced
- 1/7/2025
- Last activity
- 1/7/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Chris Van Hollen
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
The Polluters Pay Climate Fund Act of 2025 imposes a tax on specific fossil fuel companies based on their carbon dioxide emissions. This tax is designed to fund the newly established Polluters Pay Climate Fund. The fund will be used for a Federal response to climate change, including disaster recovery, infrastructure resilience, and environmental justice. A significant portion of the money is directed toward environmental justice communities and agencies like FEMA. This legislation does not prevent further legal actions against polluters.
Yes· 3 of 16
Does this improve help for people hit by a disaster?+9
The bill directs at least $15 billion to FEMA for climate-related disaster response and resilience.
Does this raise the taxes companies pay?+8
The bill imposes a significant assessment on large fossil fuel companies based on their carbon dioxide emissions.
Would Native Americans be better off under this?+7
The bill specifically targets investments toward Tribal and Indigenous communities.
The opposite
Would business owners be better off under this?-5
Large fossil fuel companies face a new significant tax assessment.
Who it would affect, and how
Potential Positive Impacts for People
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Climate Resilience and Disaster Response: The fund provides money for climate-related disaster recovery, mitigation, and adaptation, such as improving infrastructure, food systems, and water systems (Section 4(b)(2)(A)).
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Support for Vulnerable Communities: The act mandates that 40 percent of the fund's annual appropriations must be used for investments that benefit environmental justice communities (Section 4(b)(2)(C)).
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Emergency Management Funding: At least $15,000,000,000 is directed to FEMA for response and resilience programs to address disasters like hurricanes, flooding, and wildfires (Section 4(b)(2)(B)(i)).
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Clean Air Initiatives: At least $6,000,000,000 is designated for grants and technical assistance under the Clean Air Act (Section 4(b)(2)(B)(i)).
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Protection of Legal Rights: The bill ensures that the tax does not restrict the rights of people, states, or tribal governments to pursue legal remedies for damages or deception related to climate change (Section 5(b)).
Potential Negative Impacts for People
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Tax Burden on Fossil Fuel Companies: The bill imposes a tax on "assessable persons" engaged in extracting or refining fossil fuels who are responsible for more than 1,000,000,000 metric tons of covered carbon dioxide emissions (Section 3(c)(2)).
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No Tax Deductions: The legislation explicitly prevents companies from taking deductions for the taxes imposed under this act (Section 3(b)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Native Americans+7Good For African Americans+6Good For Low Income Households+6Good For Farmers+5Good For Hispanic Americans+5Good For Urban Residents+5Good For Rural Residents+4Good For Business Owners-5
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+9Improves Environmental Protections+6Improves Public Land Management+5Improves Roads And Bridges+4Reduces Carbon Emissions+4Increases Renewable Energy Investment+3
- Economy And Finance
- Increases Corporate Taxes+8
- Social Issues And Justice
- Improves Racial Equity+7
- Education And Technology
- Increases Scientific Research Funding+3
- 1/22/2025
- 2 Cosponsors added.
- 1/7/2025
- Read twice and referred to the Committee on Finance.
- 4 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Angela AlsobrooksDemocrat · Maryland
Edward MarkeyDemocrat · Massachusetts
Jeff MerkleyDemocrat · Oregon
Bernie SandersIndependent · Vermont
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts