# 119-s-1938: A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

119-s-1938, A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes., is a 119th Congress bill sponsored by Sen. Cassidy, Bill [R-LA] (R-LA); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-1938
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1938
- Congress: 119
- Title: A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
- Status: introduced
- Introduced: 2025-06-04
- Sponsor: Sen. Cassidy, Bill [R-LA] (R-LA)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Redirects part of U.S. rum excise tax revenue into a dedicated Puerto Rico Conservation Trust Fund.** The bill repeals a prior limit on how much distilled spirits tax revenue can be "covered over" to Puerto Rico and the U.S. Virgin Islands and creates a formula requiring Puerto Rico to transfer a portion of its rum cover-over into the Trust Fund. - Territories: Repeals the existing limitation on cover over of distilled spirits taxes to Puerto Rico and the U.S. Virgin Islands, expanding the scope of rum tax transfers to those territories. - Puerto Rico Conservation Trust Fund: For rum taxed at rates equal to or above $10.5 per proof gallon, Puerto Rico must transfer at least one-sixth of the difference between $10.5 and the applicable rate to the Trust Fund, with a cap of $13.3 per proof gallon. The fund is defined to conserve natural areas, including sustainable agriculture and reforestation and restoration of habitats. - Timing and legal alignment: The amendments apply to distilled spirits brought into the United States after December 31, 2021 and include retroactive alignment with specified prior laws. Puerto Rico’s obligation to make the transfer does not alter payment priorities established under Puerto Rico law as of December 31, 2022.

## Cosponsors (4)

- Sen. Gillibrand, Kirsten E. [D-NY] (D-NY), 2025-06-04T00:00:00.000Z
- Sen. Wicker, Roger F. [R-MS] (R-MS), 2025-06-04T00:00:00.000Z
- Sen. Luján, Ben Ray [D-NM] (D-NM), 2025-06-04T00:00:00.000Z
- Sen. McConnell, Mitch [R-KY] (R-KY), 2025-06-09T00:00:00.000Z

## Provisions PRIA read

- New rules for rum tax transfers: mixed, low. This bill would change how distilled spirits taxes are sent to U.S. territories. It would repeal the legal limit on cover-over to Puerto Rico and the U.S. Virgin Islands for spirits brought into the U.S. after December 31, 2021. It would also require Puerto Rico to transfer to the Puerto Rico Conse…

## Related bills

- 119-s-2296: National Defense Authorization Act for Fiscal Year 2026
- 119-s-4784: National Defense Authorization Act for Fiscal Year 2027
- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-1241: Sanctioning Russia Act of 2025
- 119-s-1261: CONNECT for Health Act of 2025
- 119-s-2120: Older Americans Act Reauthorization Act of 2025

## Sources
- [119-s-1938 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1938)

## Related
- [119-s-2296: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-2296)
- [119-s-4784: National Defense Authorization Act for Fiscal Year 2027](https://policyrisk.com/legislation/119-s-4784)
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [119-s-1261: CONNECT for Health Act of 2025](https://policyrisk.com/legislation/119-s-1261)
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1938 (as of 2025-12-21).