Polluters Pay Climate Fund Act of 2025
Sponsored By: Senator Sen. Van Hollen, Chris [D-MD]
Introduced
Summary
Charging fossil fuel companies for historic CO2 emissions to fund a federal climate resilience and justice program. The bill imposes a tax tied to firms' share of covered emissions from 2000–2023 and creates the Polluters Pay Climate Fund to pay for adaptation, disaster response, and environmental‑justice investments.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
New Polluters Pay Climate Fund
If enacted, the bill would create a Polluters Pay Climate Fund in the Treasury. The Fund would receive amounts equal to the new tax receipts and any future appropriations. Each fiscal year the Fund would be available by appropriation for climate resilience, adaptation, disaster response, and environmental justice programs. To the greatest extent practicable, at least $15 billion each year would go to FEMA for climate disaster response and resilience, including at least $3 billion for the BRIC program. At least $6 billion each year would support Clean Air Act section 138 grants and technical help. Each fiscal year, 40% of amounts appropriated from the Fund would be reserved for investments that benefit environmental justice communities.
One-time $1 trillion tax on polluters
If enacted, large fossil fuel extractors and refiners would share a one-time $1 trillion tax. Each liable party would pay a share based on its CO2 emissions from Jan 1, 2000 through Dec 31, 2023 above a 1,000,000,000 metric‑ton threshold. The tax would be due on September 30, 2026, but firms could elect nine annual installments (20% first year, then eight years of 10%). The tax would not be deductible for federal income tax purposes. Treasury rules would treat corporate groups as one liable party and can speed up payment if a business is sold, closes, or misses payments.
Preserve climate lawsuits and state rules
If enacted, the bill would not stop people or governments from suing over climate harms. It would keep existing state and federal legal claims like nuisance, negligence, and deceptive practices. Money paid from the Fund for covered purposes would not have to be repaid because of later damage awards, and those Fund payments could not be used as evidence or to reduce damage awards. The bill would also say it does not override state or local climate and emissions rules, including monitoring, recordkeeping, cost recovery, or investigations.
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Sponsors & CoSponsors
Sponsor
Sen. Van Hollen, Chris [D-MD]
MD • D
Cosponsors
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 1/7/2025
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 1/7/2025
Sen. Markey, Edward J. [D-MA]
MA • D
Sponsored 1/7/2025
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 1/7/2025
Peter Welch
VT • D
Sponsored 1/22/2025
Sen. Alsobrooks, Angela D. [D-MD]
MD • D
Sponsored 1/22/2025
Roll Call Votes
No roll call votes available for this bill.
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