# 119-s-4490: Fair Trusts for Fiscal Responsibility Act

119-s-4490, Fair Trusts for Fiscal Responsibility Act, is a 119th Congress bill sponsored by Sen. Murray, Patty [D-WA] (D-WA); status introduced; PRIA reads it as touching household money (as of 2026-05-30).

- Canonical: https://policyrisk.com/legislation/119-s-4490
- As of: 2026-05-30
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4490
- Congress: 119
- Title: Fair Trusts for Fiscal Responsibility Act
- Status: introduced
- Introduced: 2026-05-12
- Sponsor: Sen. Murray, Patty [D-WA] (D-WA)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-05-30

## Summary

**This bill would create an annual tax on trust assets** and new reporting and valuation rules to tax and track high-value trusts. It would add progressive brackets, a trust withholding credit account, estate coordination, and gift treatment for grantor-trust taxes. - Beneficiaries and families would receive annual information statements showing a trust's net assets and each beneficiary's present-value interest. Reports are due by April 1 and the rules include an example exception for persons with aggregate present-value across trusts of at least $250,000. - Trustees and trusts would face a new annual net-asset tax computed in progressive brackets and capped by statute, with rates topping out at 3.0%. Trustees must maintain a Trust Withholding Credit Account that tracks taxes paid and credits available when distributions occur. - Estates and grantor-trust owners would see coordination rules that add trust withholding-account balances to the decedent's gross estate and allow credits for previously paid trust asset taxes. Payments by deemed owners of grantor trusts would be treated as taxable gifts and many provisions apply to calendar years beginning after 2026.

## Cosponsors (4)

- Sen. Wyden, Ron [D-OR] (D-OR), 2026-05-12T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2026-05-12T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2026-05-12T00:00:00.000Z
- Sen. Alsobrooks, Angela D. [D-MD] (D-MD), 2026-05-12T00:00:00.000Z

## Provisions PRIA read

- Grantor trust tax payments as gifts: cost, high. If enacted, amounts equal to taxes paid by a deemed owner for an applicable grantor trust would be treated as taxable gifts in the year paid. Reimbursements by the trust during that same year would prevent gift treatment. The date of the gift would be the earlier of year-end, the day before the own…
- New annual tax on big trusts: cost, high. If enacted, applicable trusts would pay an annual tax on the trust's net assets measured on the last day of each calendar year. Rates would be 0% up to $50 million; 1% up to $100 million; 1.5% up to $250 million; 2% up to $1 billion; and 3% on amounts above $1 billion. The trust-level tax would be…
- Trust credit accounts and estate tax: mixed, high. If enacted, the bill would create trust withholding credit accounts for applicable trusts and beneficiaries. Accounts would increase when trusts pay chapter 16 taxes and when beneficiaries receive qualified distributions, and decrease on distributions or taxable terminations. The bill would let pre…
- Beneficiary bracket allocations and reporting: mixed, medium. If enacted, the bill would set dollar bracket thresholds ($50M, $100M, $250M, $1B) and let beneficiaries allocate unused bracket amounts to trusts based on present-value shares. The statutory bracket amounts would be inflation-adjusted after 2027 using 2026 as the baseline. The bill would also requ…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-2763: Keep Billionaires Out of Social Security Act
- 119-s-3869: Healthy Families Act
- 119-s-51: Washington, D.C. Admission Act

## Sources
- [119-s-4490 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4490)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-2763: Keep Billionaires Out of Social Security Act](https://policyrisk.com/legislation/119-s-2763)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [119-s-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-s-51)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4490 (as of 2026-05-30).