America's Clean Future Fund Act
Sponsored By: Senator Durbin, Richard J. [D-IL]
Introduced
Summary
Creates a carbon-fee funded trust to pay quarterly rebates, fund a new Climate Change Finance Corporation, and back agricultural and community transition programs. It sets statutory emissions goals of 45 percent by 2030 and 100 percent by 2050, both relative to 2018, and pairs a fee on noncovered fuel emissions with rebates and targeted investments.
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 6 benefits, 1 costs, 2 mixed.
New Climate Finance Corporation
If enacted, this would create an independent Climate Change Finance Corporation to make grants and guarantee loans for clean energy, resilience, and industrial decarbonization. It could guarantee 75% of financing at disbursement and collect guarantee fees, with borrower fee caps (up to 2% for loans $150,000 or less, up to 3% for loans over $150,000 and under $700,000, and up to 3.5% for loans $700,000 or more). The Board must adopt an investment plan and ensure at least 40% of annual grant funds go to prioritized communities. The Board must publicly report expenditures quarterly.
New carbon fee on fuels
If enacted, this would create a federal carbon fee on covered fuels for calendar years after Dec. 31, 2026. The fee equals a fuel's greenhouse gas content times the annual carbon fee rate. The rate would start at $75 per ton in 2027 and rise each year on a set schedule, with bigger increases if emissions targets are missed. A separate fee on noncovered fuel emissions would apply for calendar years after Dec. 31, 2028 to large emitters. The law would require EPA and the Secretary to write rules about who pays, quarterly payments, annual reporting, third‑party verification, and refunds for nonemitting uses.
America's Clean Future Trust Fund
If enacted, this would create a Treasury trust fund that holds carbon fees and, for each of the first 14 fiscal years after Sept. 30, 2027, receives an extra transfer equal to $100 billion ÷ 14. Each year the fund would split money among rebate/transition payments, an agricultural decarbonization set‑aside, the Climate Change Finance Corporation, and transition assistance. For the first 10 years, 75% goes to the rebate/transition channel (with 7% set aside for agriculture), 15% goes to the Finance Corporation, and 10% goes to transition assistance. The apportionments change on a set schedule after the initial period.
Import fees and export refunds
If enacted, this would make importers pay a carbon equivalency fee like the domestic carbon fee and allow exporters to get refunds for carbon fees paid at home. The import fee would be reduced by any similar foreign fee, and the Secretary may treat some foreign policies as equivalent. The Secretary must consult EPA, Commerce, Energy, and, as appropriate, State when writing rules.
Grants for worker and community transition
If enacted, Commerce (with Labor) would award grants to help workers and communities shift from carbon‑intensive jobs to cleaner work. Grants can fund job training, apprenticeships, subsidized employment, support services, early‑retiree subsidies, and cleanup of retired fossil‑fuel sites. Initial appropriations include $5 billion for FY2026 and $5 billion for FY2027. Grant projects must follow federal labor standards and Buy American rules.
Quarterly carbon rebate payments
If enacted, this would pay eligible adults a quarterly carbon rebate starting after Sept. 30, 2027. Each quarter you would get one quarter of that year's rebate pot divided among eligible adults. The law provides $37.5 billion for FY2026 and $37.5 billion for FY2027 for initial payments. Payments would not be taxable income and would not count as income for most federal or state benefit programs. Payments are reduced when household MAGI is over $150,000 (joint) or $75,000 (other): 5% cut of the payment for each $1,000 (or part) over the limit.
Payments for farm decarbonization
If enacted, Agriculture would pay eligible producers for verified climate‑smart actions on land with a 3‑year cropping or livestock history. Payments must be measurable, reportable, and verifiable. The Secretary must set payment rates considering additionality, early adoption, and co‑benefits. The Department must write rules by July 1, 2026 on measurement, third‑party verifier accreditation, data ownership, and privacy. Public data must be aggregated unless a producer consents.
New payments for carbon capture
If enacted, this would pay for each metric ton of qualified carbon oxide that is captured and securely stored or used. The payment equals the applicable carbon fee rate for the year and source. Payments cannot be claimed for carbon sold or used as a tertiary injectant in certain oil or gas recovery projects. Facilities with air or water quality violations or that harm an environmental justice community would be ineligible while violations or harm exist.
Carbon studies and sequestration targets
If enacted, EPA would ask the National Academy of Sciences to study how well the fees reduce greenhouse gases by Jan. 1, 2029 and at least every five years after. The study would look at total U.S. emissions and local pollution in environmental justice communities. The Council on Environmental Quality would set a target for carbon stored on public and private lands and waters and report to Congress as soon as practicable.
Sponsors & CoSponsors
Sponsor
Durbin, Richard J. [D-IL]
IL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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