H.R. 1 — what changed

changed The table of contents for of this Act is as follows:

changed Section 203D(d)(5) 6(f) of the Emergency Food Assistance and Nutrition Act of 1983 2008 (7 U.S.C. 7507(d)(5)) 2015(f)) is amended by striking “2024” and inserting “2031”.to read as follows:

added “(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is—

added “(1) a resident of the United States; and

added “(2) either—

added “(A) a citizen or national of the United States;

added “(B) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country;

added “(C) an alien who is a citizen or national of the Republic of Cuba and who—

added “(i) is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act;

added “(ii) meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;

added “(iii) is not otherwise inadmissible under section 212(a) of such Act; and

added “(iv) is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or

added “(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.”

“(19) Reference price

“(A) In general—Subject to subparagraphs (B) and (C), the term “reference price”, with respect to a covered commodity for a crop year, means the following:

“(i) For wheat, $6.35 per bushel.

“(ii) For corn, $4.10 per bushel.

“(iii) For grain sorghum, $4.40 per bushel.

“(iv) For barley, $5.45 per bushel.

“(v) For oats, $2.65 per bushel.

“(vi) For long grain rice, $16.90 per hundredweight.

“(vii) For medium grain rice, $16.90 per hundredweight.

“(viii) For soybeans, $10.00 per bushel.

“(ix) For other oilseeds, $23.75 per hundredweight.

“(x) For peanuts, $630.00 per ton.

“(xi) For dry peas, $13.10 per hundredweight.

“(xii) For lentils, $23.75 per hundredweight.

“(xiii) For small chickpeas, $22.65 per hundredweight.

“(xiv) For large chickpeas, $25.65 per hundredweight.

“(xv) For seed cotton, $0.42 per pound.

“(B) Effectiveness—Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005.

“(C) Limitation—In no case shall a reference price for a covered commodity exceed 115 percent of the reference price for such covered commodity listed in subparagraph (A).”

“(e) Additional base acres

“(1) In general—As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (4) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection.

“(2) Content of notice—The notice under paragraph (1) shall include the following:

“(A) Information that the allocation is occurring.

“(B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (4).

“(C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (4) through an appeals process established by the Secretary.

“(3) Opt-out—An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary.

“(4) Eligibility

“(A) In general—Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C).

“(B) 5-year average sum—The amount described in this subparagraph, with respect to a farm, is the sum of—

“(i) the 5-year average of—

“(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and

“(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus

“(ii) the lesser of—

“(I) 15 percent of the total acres on the farm; and

“(II) the 5-year average of—

“(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and

“(bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.

“(C) Total number of base acres for covered commodities—The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024.

“(D) Effect of no recent plantings of covered commodities—In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection.

“(E) Acreage planted on the farm to eligible noncovered commodities defined—In this paragraph, the term acreage planted on the farm to eligible noncovered commodities means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary.

“(5) Number of base acres—Subject to paragraphs (4) and (7), the number of base acres allocated to an eligible farm shall—

“(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (4) from the amount determined under subparagraph (B) of that paragraph; and

“(B) include unassigned crop base.

“(6) Allocation of acres

“(A) Allocation—The Secretary shall allocate the number of base acres under paragraph (5) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years.

“(B) Allocation formula—The allocation of additional base acres for covered commodities shall be in proportion to the ratio of—

“(i) the 5-year average of—

“(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and

“(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to

“(ii) the 5-year average determined under paragraph (4)(B)(i).

“(C) Inclusion of all 5 years in average—For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.

“(D) Treatment of multiple planting or prevented planting—For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity.

“(E) Limitation—The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm.

“(7) Reduction by the Secretary—In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres.

“(8) Payment yield—Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to—

“(A) the payment yield established on the farm for the applicable covered commodity; and

“(B) if no such payment yield for the applicable covered commodity exists, a payment yield—

“(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or

“(ii) determined pursuant to section 1113(c).

“(9) Treatment of new owners—In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining—

“(A) eligibility under paragraph (4);

“(B) eligible acres under paragraph (5); and

“(C) the allocation of acres under paragraph (6).”

“(C) the same coverage for each covered commodity on the farm for the 2026 through 2031 crop years as was applicable for the 2024 crop year.”

“(B)

“(i) for each of the crop years 2014 through 2024, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and

“(ii) for each of the crop years 2025 through 2031, 12.5 percent of the benchmark revenue for the crop year applicable under subsection (c).”

“(5) Qualified pass-through entity—The term qualified pass-through entity means—

“(A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986);

“(B) an S corporation (as defined in section 1361 of that Code);

“(C) a limited liability company that does not affirmatively elect to be treated as a corporation; and

“(D) a joint venture or general partnership.”

“(i) Adjustment—For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”

“(4) Exception for certain operations

“(A) Definitions—In this paragraph:

“(i) Excepted payment or benefit—The term excepted payment or benefit means—

“(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.);

“(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

“(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024.

“(ii) Farming, ranching, or silviculture activities—The term farming, ranching, or silviculture activities includes agritourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment by a person or legal entity that owns such equipment, and other agriculture-related activities, as determined by the Secretary.

“(B) Exception—In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.”

“(c) 2026 through 2031 crop years—For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

“(1) In the case of wheat, $3.72 per bushel.

“(2) In the case of corn, $2.42 per bushel.

“(3) In the case of grain sorghum, $2.42 per bushel.

“(4) In the case of barley, $2.75 per bushel.

“(5) In the case of oats, $2.20 per bushel.

“(6) In the case of upland cotton, $0.55 per pound.

“(7) In the case of extra long staple cotton, $1.00 per pound.

“(8) In the case of long grain rice, $7.70 per hundredweight.

“(9) In the case of medium grain rice, $7.70 per hundredweight.

“(10) In the case of soybeans, $6.82 per bushel.

“(11) In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds:

“(A) Sunflower seed.

“(B) Rapeseed.

“(C) Canola.

“(D) Safflower.

“(E) Flaxseed.

“(F) Mustard seed.

“(G) Crambe.

“(H) Sesame seed.

“(I) Other oilseeds designated by the Secretary.

“(12) In the case of dry peas, $6.87 per hundredweight.

“(13) In the case of lentils, $14.30 per hundredweight.

“(14) In the case of small chickpeas, $11.00 per hundredweight.

“(15) In the case of large chickpeas, $15.40 per hundredweight.

“(16) In the case of graded wool, $1.60 per pound.

“(17) In the case of nongraded wool, $0.55 per pound.

“(18) In the case of mohair, $5.00 per pound.

“(19) In the case of honey, $1.50 per pound.

“(20) In the case of peanuts, $390 per ton.”

“(e) Special rule for seed cotton and corn

“(1) In general—For purposes of section 1116(b)(2) and paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of section 1117(b), the loan rate shall be deemed to equal—

“(A) for seed cotton, $0.30 per pound; and

“(B) for corn, $3.30 per bushel.

“(2) Effect—Nothing in this subsection authorizes any nonrecourse marketing assistance loan under this subtitle for seed cotton.”

“(1) Crop years 2014 through 2025—Effective”

“(2) Payment of cotton storage costs—Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of—

“(A) the submitted tariff rate for the current marketing year; and

“(B) in the case of storage in—

“(i) California or Arizona, a payment rate of $4.90; and

“(ii) any other State, a payment rate of $3.00.”

“(1) In general—The Secretary”

“(B)

“(i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or

“(ii) in the case of upland cotton, the lowest prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the day on which the producer repays the marketing assistance loan.

“(2) Refund for upland cotton—In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price described in that paragraph and the repayment amount.”

“(1) the loan rate”

“(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.”

“(1) In general—For purposes”

“(2) Upland cotton—In the case of upland cotton, for any period when price quotations for Middling (M) 13/32-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.”

“(3) Extra long staple cotton—The prevailing world market price for extra long staple cotton determined under subsection (d)—

“(A) shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and

“(B) may be further adjusted, during the period beginning on the date of enactment of this paragraph and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—

“(i) to minimize potential loan forfeitures;

“(ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government;

changed “(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; competitively; and

“(iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—

“(I) there are insufficient current-crop price quotations; and

“(II) the forward-crop price quotation is the lowest such quotation available.”

“(2) Value of assistance—The value of the assistance provided under paragraph (1) shall be—

“(A) for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and

“(B) beginning on August 1, 2025, 5 cents per pound.”

“(6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.”

“(3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.”

changed “(a) In general—Notwithstanding any other provision of law, for the 2025 crop year and each subsequent crop year, the general—The Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than—

“(1) in the case of refined sugar, 34 cents per hundredweight per month; and

“(2) in the case of raw cane sugar, 27 cents per hundredweight per month.”

“(A) In general—Except as provided in subparagraph (B), in the case”

“(B) Exception—If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.”

“(A) In general—If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment for the crop year will be unable to market that allocation”

“(B) Timing—In carrying out subparagraph (A), the Secretary shall—

“(i) make an initial determination following the publication of the World Agricultural Supply and Demand Estimates (in this subparagraph referred to as “WASDE”) approved by the World Agricultural Outlook Board for the month of January that is applicable to the crop year for which a determination under subparagraph (A) is made; and

“(ii) provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date of the announcement of such WASDE.”

“(c) Reallocation

changed “(1) Initial reallocation—Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the United States Trade Representative, in consultation with the Secretary, Secretary shall—

“(A) determine which countries do not intend to fulfill their allocation for the quota year; and

“(B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable.

changed “(2) Subsequent reallocation—Subject to paragraph (3), not later than March 1 of a quota year, the United States Trade Representative, in consultation with the Secretary, Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year.

“(3) Cessation of effectiveness—Paragraphs (1) and (2) shall cease to be in effect if—

“(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and

“(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico.

“(d) Refined sugar

“(1) Definition of domestic sugar industry—In this subsection, the term domestic sugar industry means domestic—

“(A) sugar beet producers and processors;

“(B) producers and processors of sugar cane; and

“(C) refiners of raw cane sugar.

“(2) Study required

“(A) In general—Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate.

“(B) Elements—In conducting the study under subparagraph (A), the Secretary shall examine the following:

“(i) The need for—

“(I) defining “refined sugar” as having a minimum polarization of 99.8 degrees or higher;

“(II) establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis;

“(III) prescribing specifications for packaging type for refined sugar;

“(IV) prescribing specifications for transportation modes for refined sugar;

“(V) requiring affidavits or other evidence that sugar imported as refined sugar will not undergo further refining in the United States;

changed “(VI) prescribing appropriate terms and conditions to avoid the circumvention of Federal laws relating to any unlawful sugar imports; and

“(VII) establishing other definitions, terms and conditions, or other requirements.

“(ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry.

“(iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate.

changed “(C) Consultation—In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry, industry and users of refined sugar, and relevant State and Federal agencies.sugar.

“(D) Report—Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A).

“(3) Establishment of additional terms and conditions permitted

“(A) In general—Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.

“(B) Promulgation of regulations—The Secretary may issue regulations under subparagraph (A) if the regulations—

“(i) do not have an adverse impact on the domestic sugar industry; and

“(ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.”

“(a) Production history—Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2021, 2022, or 2023 calendar years.”

“(b) Election by new dairy operations—In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:

“(1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.

“(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.”

“(5) Fiscal year 2025 reconciliation—The Secretary shall make available to the Farm Service Agency to carry out section 10101 of the Act titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14”, and the amendments made by that section, $50,000,000, to remain available until expended, of which—

“(A) not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b);

“(B) $3,000,000 shall be used for activities described in paragraph (3)(A) of this subsection;

“(C) $3,000,000 shall be used for activities described in paragraph (3)(B) of this subsection; and

“(D) $10,000,000 shall be used to—

“(i) carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and

“(ii) publish the results of such surveys biennially.”

“(2) Payment rates

“(A) Losses due to predation—Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.

“(B) Losses due to adverse weather or disease—Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.

“(C) Determination of market value—In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock.

“(D) Applicable date defined—In this paragraph, the term applicable date means, with respect to livestock, as applicable—

“(i) the day before the date of death of the livestock; or

“(ii) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.”

“(5) Additional payment for unborn livestock

“(A) In general—In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1).

“(B) Payment rate—Additional payments under subparagraph (A) shall be made at a rate—

“(i) determined by the Secretary; and

“(ii) less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency.

“(C) Payment amount—The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in—

“(i) subparagraph (A), (B), or (F) of subsection (a)(4), by 1;

“(ii) subparagraph (D) of such subsection, by 2;

“(iii) subparagraph (E) of such subsection, by 12; and

“(iv) subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary.

“(D) Unborn livestock death losses defined—In this paragraph, the term unborn livestock death losses means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.”

“(aa) 4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or

“(bb) any of the 7 of the previous 8 consecutive”

“(5) Assistance for losses due to bird depredation

“(A) Payments—Eligible producers on a farm of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds.

“(B) Payment rate

“(i) In general—The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account—

“(I) costs associated with the deterrence of piscivorous birds;

“(II) the value of lost fish and revenue due to bird depredation; and

“(III) costs associated with disease loss from bird depredation.

“(ii) Minimum rate—The payment rate for payments under subparagraph (B) shall be not less than $600 per acre of farm-raised fish.

“(C) Payment amount—The amount of a payment under subparagraph (B) shall be the product obtained by multiplying—

“(i) the applicable payment rate under subparagraph (C); and

“(ii) 85 percent of the total number of acres of farm-raised fish farms that the eligible producer has in production for the calendar year.”

added “(9) Additional support

added “(A) In general—Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is—

added “(i) the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher; plus

added “(ii) any increase otherwise made available under this subsection.

added “(B) Percentage points adjustments—The percentage points referred to in subparagraph (A)(i) are the following:

added “(i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points.

added “(ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points.

added “(iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.”

removed “(A) In general—Notwithstanding”

removed “(B) Percentage points adjustments—The percentage points referred to in subparagraph (A) are the following:

removed “(i) For each of the first and second reinsurance years that a beginning farmer or rancher or veteran farmer or rancher participates as a beginning farmer or rancher or veteran farmer or rancher, respectively, in the applicable policy or plan of insurance, 15 percentage points.

removed “(ii) For the third reinsurance year that a beginning farmer or rancher or veteran farmer or rancher participates as a beginning farmer or rancher or veteran farmer or rancher, respectively, in the applicable policy or plan of insurance, 13 percentage points.

removed “(iii) For the fourth reinsurance year that a beginning farmer or rancher or veteran farmer or rancher participates as a beginning farmer or rancher or veteran farmer or rancher, respectively, in the applicable policy or plan of insurance, 11 percentage points.

removed “(iv) For each of the fifth through tenth reinsurance years that a beginning farmer or rancher or veteran farmer or rancher participates as a beginning farmer or rancher or veteran farmer or rancher, respectively, in the applicable policy or plan of insurance, 10 percentage points.”

“(ii) may be purchased at any level not to exceed—

“(I) in the case of the individual yield or revenue coverage, 85 percent;

“(II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and

“(III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.”

“(10) Additional expenses

“(A) In general—Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts.

“(B) Payment amount—In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.

“(C) Definitions—In this paragraph:

“(i) Eligible state—The term eligible State means a State—

“(I) identified in State Group 2 or State Group 3 (as defined in the Standard Reinsurance Agreement for reinsurance year 2026); and

“(II) in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers.

“(ii) Eligible contracts—The term eligible contract—

“(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and

“(II) does not include a contract for—

“(aa) catastrophic risk protection under subsection (b);

“(bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or

“(cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation.

“(11) Specialty crops

“(A) Minimum reimbursement—Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of title I of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note) shall be equal to or greater than the percent that is the greater of the following:

“(i) 17 percent of the premium used to define loss ratio.

“(ii) The percent of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year.

“(B) Other contracts—In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph.

“(C) Administration—The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A).

“(12) A&O inflation adjustment

“(A) In general—Subject to subparagraph (B), for the 2026 reinsurance year, and each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR–10–007 and dated June 30, 2010.

“(B) Special rule for 2026 reinsurance year—The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

“(C) Administration—An increase under subparagraph (A)—

“(i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and

“(ii) shall not be considered to be a renegotiation of the Standard Reinsurance Agreement for purposes of paragraph (8)(A).”

“(A) $4,000,000 for each of fiscal years 2009 through 2025; and

“(B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.”

“(j) Poultry insurance pilot program

“(1) In general—Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production.

“(2) Stakeholder engagement—The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1).

“(3) Location—The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, including Alabama, Arkansas, and Mississippi, as determined by the Corporation.

“(4) Approval of policy or plan—Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)—

“(A) in accordance with section 508(h); and

“(B) not later than 24 months after the date of enactment of this subsection.”

removed Section 203(f) of the Agricultural Trade Act of 1978 (7 U.S.C. 5623(f)) is amended—

removed “(B) Fiscal years 2026 through 2031—For each of fiscal years 2026 through 2031, of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, the Secretary shall use to carry out this section $489,500,000, to remain available until expended.”

removed “(4) Allocations for fiscal years 2026 through 2031

removed “(A) In general—For each of fiscal years 2026 through 2031, the Secretary shall allocate funds to carry out this section in accordance with the following:

removed “(i) Market access program—For market access activities authorized under subsection (b), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $400,000,000 for each fiscal year.

removed “(ii) Foreign market development cooperator program—To carry out subsection (c), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $69,000,000 for each fiscal year.

removed “(iii) E (Kika) de la Garza emerging markets program—To provide assistance under subsection (d), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not more than $8,000,000 for each fiscal year.

removed “(iv) Technical assistance for specialty crops—To carry out subsection (e), of the funds of, or an equal value of the commodities owned by, the Commodity Credit Corporation, $9,000,000 for each fiscal year.

removed “(v) Priority trade fund

removed “(I) In general—In addition to the amounts allocated under clauses (i) through (iv), and notwithstanding any limitations in those clauses, as determined by the Secretary, for 1 or more programs under this section for authorized activities to access, develop, maintain, and expand markets for United States agricultural commodities, $3,500,000 for each fiscal year.

removed “(II) Considerations—In allocating funds made available under subclause (I), the Secretary may consider providing a greater allocation to 1 or more programs under this section for which the amounts requested under applications exceed available funding for the 1 or more programs.

removed “(B) Reallocation—Any funds allocated under clauses (i) through (iv) of subparagraph (A) that remain unobligated one year after the end of the fiscal year in which they are first made available shall be reallocated to the priority trade fund under subparagraph (A)(v). To the maximum extent practicable, the Secretary shall allocate such reallocated funds to support exports of those types of United States agricultural commodities eligible for assistance under the program for which the funds were originally allocated under subparagraph (A).”

added Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking “2024” and inserting “2031”.

In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—

In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—

In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—

changed In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for activities in support of border operations, including deployment of military personnel, operations and maintenance, counter-narcotics and counter-transnational criminal organization mission support, the operation of and construction in national defense areas, the temporary detention of migrants on Department of Defense installations, and the repatriation of persons in support of law enforcement activities, pursuant to sections 272, 277, 284, and 2672 of title 10, United States Code.installations.

removed In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $2,000,000,000 for the enhancement of military intelligence programs.

added The funds made available under this title may not be used to enter into any agreement under which any payment of such funds could be outlaid or disbursed after September 30, 2034.

“(5) be—

“(A) a citizen or national of the United States;

“(B) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.);

“(C) an alien who—

“(i) is a citizen or national of the Republic of Cuba;

“(ii) is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act (8 U.S.C. 1153(a));

“(iii) meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;

changed “(iv) is not otherwise inadmissible under section 212(a) of such Act (8 U.S.C. 8 U.S.C. 1182(a)); and

changed “(v) is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995;1995; or

changed “(D) an alien described individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 401(a) 402(b)(2)(G) of the Additional Ukraine Supplemental Appropriations Act, 2022 (Public Law 117–128; 8 Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1101 note);1612(b)(2)(G)); and”

removed “(E) an alien described in section 2502(a) of the Afghanistan Supplemental Appropriations Act, 2022 (division C of Public Law 117–43; 8 U.S.C. 1101 note); or

removed “(F) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)); and”

“(C) Termination of authority to make subsidized loans to undergraduate students—Notwithstanding any provision of this part or part B, except as provided in paragraph (4), for any period of instruction beginning on or after July 1, 2026—

“(i) an undergraduate student shall not be eligible to receive a Federal Direct Stafford loan under this part; and

“(ii) the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under paragraph (5)).”

“(D) Termination of authority to make Federal Direct PLUS Loans to any student borrower—Notwithstanding any provision of this part or part B, except as provided in paragraph (4), for any period of instruction beginning on or after July 1, 2026, a graduate student or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.”

“(E) Restriction on authority to make Federal Direct PLUS Loans to any parent borrower

“(i) In general—Notwithstanding any provision of this part or part B, except as provided in clause (ii) and paragraph (4), for any period of instruction beginning on or after July 1, 2026, a parent, on behalf of a dependent student, shall not be eligible to receive a Federal Direct PLUS Loan under this part.

“(ii) Exception—A parent may receive a Federal Direct PLUS Loan under this part, on behalf of a dependent student, in any academic year (as defined in section 481(a)(2)) or its equivalent if—

“(I) such student borrows the maximum annual amount of Federal Direct Unsubsidized Stafford loans such student may borrow in such academic year; and

“(II) such maximum annual amount is less than the cost of attendance of the program of study of such student.”

“(4) Interim exception for certain students

“(A) Application of prior limits—Subparagraphs (C), (D), and (E) of paragraph (3), and paragraphs (5) and (6), shall not apply, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026—

“(i) is enrolled in a program of study at an institution of higher education; and

“(ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study.

“(B) Expected time to credential—For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of—

“(i) three academic years; or

“(ii) the period determined by calculating the difference between—

“(I) the program length (as defined in section 420W) for the program of study in which the individual is enrolled; and

“(II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph.”

“(5) Annual and aggregate unsubsidized loan limits

“(A) Undergraduate students

“(i) Annual loan limits—Notwithstanding any provision of this part or part B, subject to subparagraph (C) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between—

“(I) the amount of the median cost of college of the program of study in which the student is enrolled; and

“(II) the amount of the Federal Pell Grant under section 401 awarded to the student for such academic year.

“(ii) Aggregate limits—Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that a student may borrow for programs of study that award an undergraduate credential upon completion of such a program shall be $50,000.

“(B) Graduate and professional students

“(i) Annual limits—Notwithstanding any provision of this part or part B, subject to subparagraph (C) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that a graduate student or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the amount of the median cost of college of the program of study in which the student is enrolled.

“(ii) Aggregate limits—Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that, in addition to the maximum aggregate amount described in subparagraph (A)(ii)—

“(I) a graduate student—

“(aa) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (D)(i) shall be $100,000; or

“(bb) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (D)(i) shall be an amount equal to—

“(AA) $150,000, minus

“(BB) the amount such student borrowed for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii); and

“(II) a professional student—

“(aa) who is not (and has not been) a graduate student, may borrow for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii) shall be $150,000; or

“(bb) who is (or has been) a graduate student, may borrow for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii) shall be an amount equal to—

“(AA) $150,000, minus

“(BB) the amount such student borrowed for programs of study described in subparagraph (D)(i).

“(C) Less than full-time enrollment—In any case where a student is enrolled in an program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year (as defined in section 481(a)(2)) or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this paragraph.

“(D) Definition—For purposes of this subsection:

“(i) Graduate student—The term graduate student means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.

“(ii) Professional student—The term professional student means a student enrolled in a program of study that—

“(I) awards a professional degree upon completion of the program; or

“(II) provides the training described in part 141 of title 14, Code of Federal Regulations (or any successor regulations).

“(iii) Undergraduate student—The term undergraduate student means a student enrolled in a program of study that awards an undergraduate credential upon completion of the program.”

“(6) Annual and aggregate Federal direct PLUS loans limits for parent borrowers

“(A) Annual limits—Notwithstanding any provision of this part or part B, subject to paragraph (3)(E) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct PLUS loans that a parent may borrow, on behalf of a dependent student, in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the amount equal to—

“(i) the cost of attendance of the program of study of such student; minus

“(ii) the maximum annual amount of Federal Direct Unsubsidized Stafford loans such student may borrow in such academic year.

changed “(B) Aggregate Lifetime maximum aggregate limits—Notwithstanding any provision of this part or part B, subject to paragraph (3)(E) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct PLUS loans that a parent may borrow on behalf of dependent students shall be $50,000, without regard to the number of dependent students on behalf of whom such parent borrows such a loan.”to—

added “(i) the number of dependent students on behalf of whom such parent borrows such a loan; or

added “(ii) any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.”

changed “(7) Lifetime maximum aggregate amount for all students—Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow, and that borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent may borrow borrower on behalf of such student, a dependent student) shall be $200,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.”

“(8) Institutionally determined limits—Notwithstanding the annual loan limits described in subparagraphs (A)(i) and (B)(i) of paragraph (5) and subparagraph (A) of paragraph (6), beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year (as defined in section 481(a)(2)) that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study.”

“(D) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that—

“(i) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan;

“(ii) such Plan shall not be available to borrowers with an excepted loan (as defined in paragraph (7)); and

“(iii) the borrower may not change the borrower’s selection of the Repayment Assistance Plan except in accordance with paragraph (7)(C).”

“(B) repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable.”

“(6) Termination and limitation of repayment authority

“(A) Sunset of repayment plans available before July 1, 2026—Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026.

“(B) Prohibitions—The Secretary may not, for any loan made under this part on or after July 1, 2026—

“(i) authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (7)(A); or

“(ii) carry out or modify a repayment plan that is not described in such paragraph.

“(7) Repayment plans for loans made on or after July 1, 2026

“(A) Design and selection—Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower’s loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose—

“(i) a standard repayment plan—

“(I) with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under subclause (II); and

“(II) with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows—

“(aa) for a borrower with total outstanding principal of less than $25,000, a period of 10 years;

“(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years;

“(cc) for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and

“(dd) for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or

“(ii) the income-based Repayment Assistance Plan under subsection (q).

“(B) Selection by Secretary—If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i).

“(C) Selection available for each new loan; selection applies to all outstanding loans—Each time a borrower receives a loan made under this part on or after July 1, 2026, the borrower may select either the standard repayment plan under subparagraph (A)(i) or the Repayment Assistance Plan under subparagraph (A)(ii), provided that the borrower is required to pay each outstanding loan of the borrower made under this part under such selected repayment plan.

“(D) Permissible changes of repayment plan

“(i) Changing from standard repayment plan—A borrower may change the borrower’s selection of the standard repayment plan under subparagraph (A)(i), or the Secretary’s selection of such plan for the borrower under subparagraph (C), as the case may be, to the Repayment Assistance Plan under subparagraph (A)(ii) at any time.

“(ii) Limited change from Repayment Assistance Plan—A borrower may not change the borrower’s selection of the Repayment Assistance Plan under subparagraph (A)(ii), except in accordance with subparagraph (C).

“(E) Special rule for excepted loan borrowers with loans made on or after July 1, 2026

“(i) Standard repayment plan required—Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has an excepted loan and who has received a loan made under this part on or after such date to repay each outstanding loan of the borrower made under this part, including principal and interest on such loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans.

“(ii) Excepted loan defined—For the purposes of this paragraph, the term “excepted loan” means a loan with an outstanding balance that is—

“(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or

“(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on—

“(aa) an excepted PLUS loan, as defined in section 493C(a)(1); or

“(bb) an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).

“(F) Treatment of borrowers without loans made on or after July 1, 2026—A borrower who has an outstanding loan (including an excepted loan) made under this part before July 1, 2026, and who has not received a loan made under this part on or after July 1, 2026, shall not be eligible to change the borrower’s selection of a repayment plan to the standard repayment plan under subparagraph (A)(i).”

“(1) Authority of Secretary to require—The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 455(q) or section 493C, as applicable.”

“(q) Repayment Assistance Plan

“(1) In general—Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the “Repayment Assistance Plan”), that shall have the following terms and conditions:

“(A) The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (3)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month.

“(B) The Secretary shall apply the borrower’s applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan.

“(C) Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred.

“(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of—

“(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or

“(ii) the date on which the borrower has made 360 qualifying monthly payments.

“(E) The Secretary shall repay or cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower—

“(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection;

“(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and

“(iii) who has made 360 qualifying monthly payments on such loan.

“(F) For the purposes of this subsection, the term “qualifying monthly payment” means any of the following:

“(i) An on-time applicable monthly payment under this subsection.

“(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan.

“(iii) A monthly payment under any repayment plan of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years.

“(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section.

“(v) A monthly payment made before the date of enactment of this subsection under an income-contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income-contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan.

“(vi) A month when the borrower did not make a payment because the borrower was in deferment due to an economic hardship described in section 435(o).

“(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection).

“(G) With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2)(B).

“(2) Balance assistance for distressed borrowers

“(A) Interest subsidy—With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.

“(B) Matching principal payment—With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to—

“(i) the amount that is the lesser of—

“(I) $50; or

“(II) the total amount paid by the borrower for such month pursuant to paragraph (1)(A), minus

“(ii) the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance.

“(3) Definitions—In this paragraph:

“(A) Adjusted gross income—The term adjusted gross income, when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower’s spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower’s spouse.

“(B) Applicable monthly payment

changed “(i) In general—Except as provided in clause (ii) or (ii), (iii), or (vi), the term applicable monthly payment means, when used with respect to a borrower, the amount equal to—

“(I) the applicable base payment of the borrower, divided by 12; minus

“(II) $50 for each dependent child of the borrower.

“(ii) Minimum amount—In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10.

“(iii) Final payment—In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans.

“(iv) Base payment—The amount of the applicable base payment for a borrower with an adjusted gross income of—

“(I) not more than $10,000, is $120;

“(II) more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income;

“(III) more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income;

“(IV) more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income;

“(V) more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income;

“(VI) more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income;

“(VII) more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income;

“(VIII) more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income;

“(IX) more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income;

“(X) more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and

“(XI) more than $100,000, is 10 percent of such adjusted gross income.

“(v) Dependent child of the borrower—For the purposes of this paragraph, the term “dependent child of the borrower” means an individual who—

“(I) is under 17 years of age; and

changed “(II) is the borrower’s dependent child or another person who lives with and receives more than one-half of their support from the borrower.”borrower.

added “(vi) Special rule—In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be—

added “(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower’s loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and

added “(II) determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.”

“(3) Consolidation loans made on or after July 1, 2026—Notwithstanding subsections (b)(5), (c)(2), and (c)(3)(A) and (B) of section 428C, a Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in subsection (d)(7)(A)(i) or (ii) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.”

“(2) Excepted consolidation loan

“(A) In general—The term excepted consolidation loan means—

“(i) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan; or

“(ii) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C or a Federal Direct Consolidation Loan described in clause (i).

“(B) Exclusion—The term “excepted consolidation loan” does not include a Federal Direct Consolidation Loan described in subparagraph (A) that (on the day before the date of enactment of this subparagraph) was being repaid pursuant to the Income-Contingent Repayment (ICR) plan in accordance with section 685.209(a) of title 34, Code of Federal Regulations (as in effect on June 30, 2023).”

“(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower’s aggregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12;”

“(A) the term “adjusted gross income” means—

“(i) in the case of a dependent student, for the second tax year preceding the academic year—

“(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents; plus

“(II) the foreign income (as described in section 480(b)(5)) of the student’s parents; and

“(ii) in the case of an independent student, for the second tax year preceding the academic year—

“(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus

“(II) the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);”

changed “(G) notwithstanding section 481(a)(2)(A)(iii), the terms “full time” and “full-time” (except with respect to subsection (d)(4) when used as part of the term “normal full-time workload”) mean, with respect to a student enrolled in an undergraduate course of study, the student is expected to complete at least 30 semester or trimester hours or 45 quarter credit hours (or the clock hour equivalent) in each academic award year a student is enrolled in the course of study.”

“(F) Ineligibility of students with a high student aid index—Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.”

changed “(B) Less than half-time enrollment—Notwithstanding subparagraph (A), a student who first receives a Federal Pell Grant on or after July 1, 2025, 2026, shall not be eligible for an award under this subsection for any academic award year beginning after such date in which the student is enrolled in an eligible program of an institution of higher education on less than a half-time basis. The Secretary shall update the schedule of reductions described in subparagraph (A) in accordance with this subparagraph, including for students receiving the minimum Federal Pell Grant.”

Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended—

“(6) provide annual reimbursements to the Secretary in accordance with the requirements under subsection (d); and”

“(d) Reimbursement requirements

“(1) Annual reimbursements required—Beginning in award year 2028–2029, each institution of higher education participating in the direct student loan program under this part shall, for qualifying student loans, remit to the Secretary, at such time as the Secretary may specify, an annual reimbursement for each student cohort of the institution, based on the non-repayment balance of such cohort and calculated in accordance with paragraph (3).

“(2) Student cohorts

“(A) Cohorts established—For each institution of higher education participating in the direct student loan program under this part, the Secretary shall establish student cohorts, beginning with award year 2027–2028, as follows:

“(i) Completing student cohort—For each program of study at such institution, a student cohort comprised of all students who received Federal financial assistance under this title and who completed such program during such award year.

“(ii) Undergraduate non-completing student cohort—For such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in the institution during the previous award year in a program of study leading to an undergraduate credential, and who at the time the cohort is established—

“(I) have not completed such program of study; and

“(II) are not enrolled at the institution in any program of study leading to an undergraduate credential.

“(iii) Graduate non-completing student cohort—For each program of study leading to a graduate credential at such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in such program during the previous award year, and who at the time the cohort is established—

“(I) have not completed such program of study; and

“(II) are not enrolled in such program.

“(B) Qualifying student loan—For the purposes of this subsection, the term qualifying student loan means a loan made under this part on or after July 1, 2027, that—

“(i) was made to a student included in a student cohort of an institution or to a parent on behalf of such a student;

“(ii) except in the case of a loan described in clause (i) or (ii) of subparagraph (C), is not included in any other student cohort of any institution of higher education;

“(iii) is not in—

“(I) a medical or dental internship or residency forbearance described in section 428(c)(3)(A)(i)(I), section 428B(a)(2), section 428H(a), or section 685.205(a)(3) of title 34, Code of Federal Regulations;

“(II) a graduate fellowship deferment described in section 455(f)(2)(A)(ii);

“(III) rehabilitation training program deferment described under section 455(f)(2)(A)(ii);

“(IV) an in-school deferment described under section 455(f)(2)(A)(i);

“(V) a cancer deferment described under section 455(f)(3);

“(VI) a military service deferment described under section 455(f)(2)(C); or

“(VII) a post-active duty student deferment described under section 493D; and

“(iv) is not in default.

“(C) Special circumstances

“(i) Multiple credentials—In the case of a student who completes two or more programs of study during the same award year, each qualifying student loan of the student shall be included in the student cohort for each of such program of study for such award year.

“(ii) Treatment of certain consolidation loans—A Federal Direct Consolidation loan made under this title shall not be considered a qualifying student loan for a student cohort for an award year if all of the loans included in such consolidation loan are attributable to another student cohort.

“(iii) Consolidation after inclusion in a student cohort—If a qualifying student loan is consolidated into a consolidation loan under this title after such qualifying student loan has been included in a student cohort, the percentage of the consolidation loan that was attributable to such student cohort at the time of consolidation shall remain attributable to the student cohort for the life of the consolidation loan.

“(3) Calculation of reimbursement

“(A) Reimbursement payment formula—For each student cohort of an institution of higher education established under this subsection, the annual reimbursement for such cohort shall be equal to—

“(i) the reimbursement percentage for the cohort, determined in accordance with subparagraph (B); multiplied by

“(ii) the non-repayment balance for the cohort for the award year, determined in accordance with subparagraph (C).

“(B) Reimbursement percentage—The reimbursement percentage of a student cohort of an institution shall be determined by the Secretary when the cohort is established, shall remain constant for the life of the student cohort, and shall be determined as follows:

“(i) Completing student cohorts—The reimbursement percentage of a completing student cohort shall be equal to the percentage determined by—

“(I) subtracting from one the quotient of—

“(aa) the median value-added earnings of students who completed such program of study in the most recent award year for which such earnings data is available; divided by

“(bb) the median total price charged to students included in such cohort; and

“(II) multiplying the difference determined under subclause (I) by 100.

“(ii) Special circumstances for completing student cohorts

“(I) High-risk cohorts—Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) is negative, the reimbursement percentage of the student cohort shall be 100 percent.

“(II) Low-risk cohorts—Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) exceeds the median total price of such cohort under clause (i)(I)(bb), the reimbursement percentage of the student cohort shall be 0 percent.

“(iii) Non-completing student cohorts—The reimbursement percentage of a non-completing student cohort shall be determined based on the most recent data available in the award year in which the cohort is established, and—

“(I) for an undergraduate non-completing student cohort, shall be equal to the percentage of undergraduate students who received Federal financial assistance under this title at such institution who—

“(aa) did not complete an undergraduate program of study at the institution within 150 percent of the program length of such program; or

“(bb) only in the case of a two-year institution, did not, within 6 years after first enrolling at the two-year institution, complete a program of study at a four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; and

“(II) for a graduate non-completing student cohort, shall be equal to the percentage of students who received Federal financial assistance under this title at the institution for the applicable graduate program of study and who did not complete such program of study within 150 percent of the program length.

“(C) Non-repayment loan balance

“(i) In general—For each award year, the Secretary shall determine the non-repayment loan balance for such award year for each student cohort of an institution of higher education by calculating the sum of—

“(I) for loans in such cohort, the difference between the total amount of payments due from all borrowers on such loans during such year and the total amount of payments made by all such borrowers on such loans during such year; plus

“(II) the total amount of interest waived, paid, or otherwise not charged by the Secretary during such year under the income-based repayment plan described in section 455(q); plus

“(III) the total amount of principal and interest forgiven, cancelled, waived, discharged, repaid, or otherwise reduced by the Secretary under any act during such year that is not included in subclause (II) and was not discharged or forgiven under section 437(a), 428J, or section 455(m).

“(ii) Special circumstances—For the purpose of calculating the non-repayment loan balance of student cohorts under this paragraph, the Secretary shall—

“(I) for each qualifying student loan in a student cohort that is included in another student cohort because the student who borrowed such loan completed two or more programs of study during the same award year, the sum of the amounts described in subclauses (I) through (III) of clause (i) for such qualifying student loan shall be divided equally among each of the student cohorts in which such loan is included; and

“(II) for each consolidation loan in a student cohort—

“(aa) determine the percentage of the outstanding principal balance of the consolidation loan attributable to such student cohort—

“(AA) at the time of that loan was included in such cohort, in the case of a loan consolidated before inclusion in such cohort; or

“(BB) at the time of consolidation, in the case of a loan consolidated after inclusion in such cohort; and

“(bb) include in the calculations under clause (i) for such student cohort only the percentage of the sum of the amounts described in subclauses (I) through (III) of clause (i) for the consolidation loan for such year that is equal to the percentage of the consolidation loan determined under item (aa).

“(D) Total price—With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term total price means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study. A student’s total price shall be calculated by the Secretary as the difference between—

“(i) the total amount of tuition and fees that were charged to such student before the application of any Federal financial assistance provided under this title; minus

“(ii) the total amount of grants and scholarships described in section 480(i) awarded to such student from non-Federal sources for such program of study.

“(4) Notification and remittance—Beginning with the first award year for which reimbursements are required under this subsection, and for each succeeding award year, the Secretary shall—

“(A) notify each institution of higher education of the amounts and due dates of each annual reimbursement calculated under paragraph (3) for each student cohort of the institution within 30 days of calculating such amounts; and

“(B) require the institution to remit such payments within 90 days of such notification.

“(5) Penalty for late payments

“(A) Three-month delinquency—If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection within 90 days of receiving notification from the Secretary in accordance with paragraph (4), the institution shall pay to the Secretary, in addition to such reimbursement, interest on such reimbursement payment, at a rate that is the average rate applicable to the loans in such student cohort.

“(B) Twelve-month delinquency—If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed in under subparagraph (A), within 12 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans to any student enrolled in the program of study for which the institution has failed to make the reimbursement payments until such payment is made.

“(C) Eighteen-month delinquency—If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 18 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans or award Federal Pell Grants under section 401 to any student enrolled in the institution until such payment is made.

“(D) Two-year delinquency—If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 2 years of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to participate in any program under this title for a period of not less than 10 years.

“(6) Relief for voluntary cessation of federal direct loans for a program of study—The Secretary shall, upon the request of an institution that voluntarily ceases to make Federal Direct loans to students enrolled in a specific program of study, reduce the amount of the annual reimbursement owed by the institution for each student cohort associated with such program by 50 percent if the institution assures the Secretary that the institution will not make Federal Direct loans to any student enrolled in such program of study (or any substantially similar program of study, as determined by the Secretary) for a period of not less than 10 award years, beginning with the first award year that begins after the date on which the Secretary reduces such reimbursement.

changed “(7) Reservation of funds for promise grants—Notwithstanding any other provision of law, this Act, the Secretary shall reserve the funds remitted to the Secretary as reimbursements in accordance with this subsection, and such funds shall be made available to the Secretary only for the purpose of awarding PROMISE grants in accordance with subpart 11 of part A of this title.”

“11 Promoting Real Opportunities to Maximize Investments and Savings in Education

“420S. Promise grants

“For award year 2028–2029 and each succeeding award year, from reserved funds remitted to the Secretary in accordance with section 454(d) and additional funds made available under section 420V, as necessary, the Secretary shall award PROMISE grants to eligible institutions to carry out the activities described in section 420U(c). PROMISE grants awarded under this subpart shall be awarded on a noncompetitive basis to each eligible institution that submits a satisfactory application under section 420T for a 6-year period in an amount that is determined in accordance with section 420U.

“420T. Eligible institutions; application

“(a) Eligible institution—To be eligible for a PROMISE grant under this subpart, an institution shall—

“(1) be an institution of higher education under section 102, except that an institution described in section 102(a)(1)(C) shall not be an eligible institution under this subpart; and

“(2) meet the maximum total price guarantee requirements under subsection (c).

“(b) Application—An eligible institution seeking a PROMISE grant under this subpart (including a renewal of such a grant) shall submit to the Secretary an application, at such time as the Secretary may require, containing the information required under this subsection. Such application shall—

“(1) demonstrate that the institution—

“(A) meets the maximum total price guarantee requirements under subsection (c); and

“(B) will continue to meet the maximum total price guarantee requirements for each award year during the grant period with respect to students first enrolling at the institution for each such award year;

“(2) describe how grant funds awarded under this subpart will be used by the institution to carry out activities related to—

“(A) increasing postsecondary affordability, including—

“(i) the expansion and continuation of the maximum total price guarantee requirements under subsection (c); and

“(ii) any other activities to be carried out by the institution to increase postsecondary affordability and minimize the maximum total price for completion paid by students receiving need-based student aid;

“(B) increasing postsecondary access, which may include—

“(i) the activities described in section 485E of this Act; and

“(ii) any other activities to be carried out by the institution to increase postsecondary access and expand opportunities for low- and middle-income students; and

“(C) increasing postsecondary student success, which may include—

“(i) activities to improve completion rates and reduce time to credential;

“(ii) activities to align programs of study with the needs of employers, including with respect to in-demand industry sectors or occupations (as defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102)); and

“(iii) any other activities to be carried out by the institution to increase value-added earnings and postsecondary student success;

“(3) describe—

“(A) how the institution will evaluate the effectiveness of the institution’s use of grant funds awarded under this subpart; and

“(B) how the institution will collect and disseminate information on promising practices developed with the use of such grant funds; and

“(4) in the case of an institution that has previously received a grant under this subpart, contain the evaluation required under paragraph (3) for each previous grant.

“(c) Maximum total price guarantee requirements—As a condition of eligibility for a PROMISE grant under this subpart, an institution shall—

“(1) for each award year beginning after the date of enactment of this subpart, not later than 1 year before the start of each such award year (except that, for the first award year beginning after such date of enactment, the institution shall meet these requirements as soon as practicable after such date of enactment), determine the maximum total price for completion, in accordance with subsection (e), for each program of study at the institution applicable to students in each income category and student aid index category (as determined by the Secretary) and publish such information on the institution’s website and in the institution’s catalog, marketing materials, or other official publications;

“(2) for the award year for which the institution is applying for a PROMISE grant, and at least 1 award year preceding such award year, provide to each student who first enrolls, or plans to enroll, in the institution during the award year and who receives Federal financial aid under this title a maximum total price guarantee, in accordance with this section, for the minimum guarantee period applicable to the student; and

“(3) provide to the Secretary an assurance that the institution will continue to meet each of the maximum total price guarantee requirements under this subsection for students who first enroll, or plan to enroll, in the institution during each award year included in the grant period.

“(d) Duration of minimum guarantee period

“(1) In general—The minimum period during which a student shall be provided a guarantee under subsection (c) with respect to the maximum total price for completion of a program of study at an institution shall be the average, for the 3 most recent award years for which data are available, of the median time to credential of students who completed any undergraduate program of study at the institution during each such award year, except that such minimum guarantee period shall not be less than the program length of the program of study in which the student is enrolled.

“(2) Limitation—An institution shall not be required to provide a maximum total price guarantee under subsection (c) to a student after the conclusion of the 6-year period beginning on the first day on which the student enrolled at such institution.

“(e) Determination of maximum total price for completion

“(1) In general—For the purposes of subsection (c), an institution shall determine, prior to the first award year in which a student enrolls at the institution, the maximum total price that may be charged to the student for completion of a program of study at the institution for the minimum guarantee period applicable to a student, before application of any Federal Pell Grants or other Federal financial aid under this title. Such a maximum total price for completion shall be determined for students in each income category and student aid index category (as determined by the Secretary). In determining the maximum total price for completion to be charged to each such category of students, the institution may consider the ability of a category of students to pay tuition and fees, but may not include in such consideration any Federal Pell Grants or other Federal financial aid awards that may be available to such category of students under this title.

“(2) Multiple maximum total price guarantees—In the event that a student receives more than 1 maximum total price guarantee because the student is included in more than 1 category of students for which the institution determines a maximum total price guarantee amount for the purposes of subsection (c), the maximum total price guarantee applicable to such student for the purposes of this section shall be equal to the lowest such guarantee amount.

“420U. Grant amounts; flexible use of funds

“(a) Grant amount formula

“(1) Formula—Subject to subsection (b) and section 420V(b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be calculated by the Secretary annually and shall be equal to the amount determined by multiplying—

“(A) the lesser of—

“(i) the difference determined by subtracting one from the quotient of—

“(I) the average, for the 3 most recent award years for which data are available, of the median value-added earnings for each such award year of students who completed any program of study of the institution; divided by

“(II) the average, for the 3 most recent award years for which data are available, of the maximum total price for completion determined under section 420T(e) applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or

“(ii) the number two;

“(B) the average, for the 3 most recent award years for which data are available, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and

“(C) the average, for the 3 most recent award years for which data are available, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who—

“(i) completed a program of study at the institution within 100 percent of the program length of such program; or

“(ii) only in the case of a two-year institution or a less than two-year institution—

“(I) transfer to a four-year institution; and

“(II) within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded.

“(2) Definition of low-income—In this section, the term low-income, when used with respect to a student, means that the student’s family income does not exceed the maximum income in the lowest income category (as determined by the Secretary).

“(b) Maximum grant amount—Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to—

“(1) the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by

“(2) $5,000.

“(c) Flexible use of funds—A PROMISE grant awarded under this subpart shall be used by an eligible institution to—

“(1) carry out activities included in the institution’s application for such grant related to postsecondary affordability, access, and student success;

“(2) evaluate the effectiveness of the activities carried out with such grant in accordance with section 420T(b)(3)(A); and

“(3) collect and disseminate promising practices related to the activities carried out with such grant, in accordance with section 420T(b)(3)(B).

“420V. Availability of funds

“(a) Used of reserved funds

“(1) Primary funds—To carry out this subpart, there shall be available to the Secretary any funds remitted to the Secretary as reimbursements in accordance with section 454(d) for any award year.

“(2) Secondary funds—Beginning award year 2028–2029, if the amounts made available to the Secretary under paragraph (1) to carry out this subpart in any award year are insufficient to fully fund the PROMISE grants awarded under this subpart in such award year, there shall be available to the Secretary, in addition to such amounts, any funds returned to the Secretary under section 484B in the previous award year.

“(b) Reduction of grant amount in case of insufficient funds

“(1) In general—If the amounts made available to the Secretary under subsection (a) to carry out this subpart for an award year are not sufficient to provide grants to each eligible institution in the amount determined under section 420U for such award year, the Secretary shall reduce each such grant amount by the applicable percentage described in paragraph (2).

“(2) Applicable percentage—The applicable percentage described in this paragraph is the percentage determined by dividing—

“(A) the amounts made available under subsection (a) for the award year described in paragraph (1); by

“(B) the total amount that would be necessary to provide grants to all eligible institutions in the amounts determined under section 420U for such award year.

“420W. Definitions

“In this title:

“(1) Value-added earnings

“(A) In general—With respect to a student who received Federal financial aid under this title and who completed a program of study offered by an institution of higher education, the term value-added earnings means—

“(i) the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C)); minus

“(ii) in the case of a student who completed a program of study that awards—

“(I) an undergraduate credential, 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year; or

“(II) a graduate credential, 300 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year.

“(B) Geographic adjustment

“(i) In general—Except as provided in clause (ii), the Secretary shall use the geographic location of the institution at which a student completed a program of study to adjust the value-added earnings of the student calculated under subparagraph (A) by dividing—

“(I) the difference between clauses (i) and (ii) of such subparagraph; by

“(II) the most recent regional price parity index of the Bureau of Economics Analysis for the State or, as applicable, metropolitan area in which such institution is located.

“(ii) Exception—The value-added earnings of a student calculated under subparagraph (A) shall not be adjusted based on geographic location in accordance with clause (i) if such student attended principally through distance education.

“(C) Earnings measurement period

“(i) In general—For the purpose of calculating the value-added earnings of a student, except as provided in clause (ii), the annual earnings of a student shall be measured—

“(I) in the case of a program of study that awards an undergraduate certificate, post baccalaureate certificate, or graduate certificate, 1 year after the student completes such program;

“(II) in the case of a program of study that awards an associate’s degree or master’s degree, 2 years after the student completes such program; and

“(III) in the case of a program of study that awards a bachelor’s degree, doctoral degree, or professional degree, 4 years after the student completes such program.

“(ii) Exception—The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend an earnings measurement period described in clause (i) for a program of study that—

changed “(I) requires completion of an additional educational program (such as a residency or fellowship) after completion of the program of study in order to obtain a licensure or board certification associated with the credential awarded for such program of study; and

changed “(II) when combined with the program length of such additional educational program for licensure, licensure or board certification, has a total program length that exceeds the relevant earnings measurement period prescribed for such program of study under clause (i),

“(2) Program length—The term program length means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.”

changed “(f) Reservation of funds for PROMISE grants—Notwithstanding any other provision of law, this Act, the Secretary shall reserve the funds returned to the Secretary under this section for 1 year after the return of such funds for the purpose of awarding PROMISE grants in accordance with subpart 4 of part A of this title.”

added Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the following:

added “(g) Charge for exportation or importation of natural gas—The Secretary of Energy shall, by rule, impose and collect, for each application to export natural gas from the United States to a foreign country with which there is not in effect a free trade agreement requiring national treatment for trade in natural gas, or to import natural gas from such a foreign country, a nonrefundable charge of $1,000,000, and, for purposes of subsection (a), the importation or exportation of natural gas that is proposed in an application for which such a nonrefundable charge was imposed and collected shall be deemed to be in the public interest, and such an application shall be granted without modification or delay.”

changed Section 3 In addition to amounts otherwise available, there is appropriated to the Secretary of Energy, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available for a period of five years for administrative expenses associated with carrying out section 116 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 717b) is amended by adding at the end the following:720n).

removed “(g) Charge for exportation or importation of natural gas—The Secretary of Energy shall, by rule, impose and collect, for each application to export natural gas from the United States to a foreign country with which there is not in effect a free trade agreement requiring national treatment for trade in natural gas, or to import natural gas from such a foreign country, a nonrefundable charge of $1,000,000, and, for purposes of subsection (a), the importation or exportation of natural gas that is proposed in an application for which such a nonrefundable charge was imposed and collected shall be deemed to be in the public interest, and such an application shall be granted without modification or delay.”

changed In addition to amounts otherwise available, there is appropriated to the Secretary of Energy, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available for a period of five years for administrative expenses associated with carrying out section 116 of the Alaska The Natural Gas Pipeline Act is amended by adding after section 15 (15 U.S.C. 720n).717n) the following:

added “15A. Expedited permitting

added “(a) Definitions—In this section:

added “(1) Covered application—The term “covered application” means an application for an authorization under section 3 or a certificate of public convenience and necessity under section 7, as applicable, for activities that include construction.

added “(2) Federal authorization—The term “Federal authorization” has the meaning given such term in section 15(a).

added “(b) Expedited review

added “(1) Notification of election and payment of fee—Prior to submitting a covered application, an applicant may elect to obtain an expedited review of authorizations pursuant to Sections 3 and 7 of the Natural Gas Act for the approval of such covered application by—

added “(A) submitting to the Commission a written notification—

added “(i) of the election; and

added “(ii) that identifies each Federal authorization required for the approval of the covered application and each Federal, State, or interstate agency that will consider an aspect of each such Federal authorization; and

added “(B) making a payment to the Secretary of the Treasury in an amount that is the lesser of—

added “(i) one percent of the expected cost of the applicable construction, as determined by the applicant; or

added “(ii) $10,000,000 (adjusted for inflation, as the Secretary of the Treasury determines necessary).

added “(2) Submission and review of applications

added “(A) Application—Not later than 60 days after the date on which an applicant elects to obtain an expedited review under paragraph (1), the applicant shall submit to the Commission the covered application for which such election for an expedited review was made, which shall include—

added “(i) the scope of the applicable activities, including capital investment, siting, temporary construction, and final workforce numbers;

added “(ii) the industrial sector of the applicant, as classified by the North American Industry Classification System; and

added “(iii) a list of the statutes and regulations that are relevant to the covered application.

added “(B) Approval

added “(i) Standard deadline—Except as provided in clause (ii), not later than one year after the date on which an applicant submits a covered application pursuant to subparagraph (A)—

added “(I) each Federal, State, or interstate agency identified under paragraph (1)(A)(ii) shall—

added “(aa) review the relevant Natural Gas Act sections 3 or 7 authorization identified under such paragraph; and

added “(bb) subject to any conditions determined by such agency to be necessary to comply with the requirements of the Federal law under which such approval is required, approve such Federal authorization; and

added “(II) the Commission shall—

added “(aa) review the covered application; and

added “(bb) subject to any conditions determined by the Commission to be necessary to comply with the requirements of this Act, approve the covered application.

added “(ii) Extended deadline

added “(I) Extension—With respect to a covered application submitted pursuant to subparagraph (A), the Commission may approve a request by an agency identified under paragraph (1)(A)(ii) for an extension of the one-year deadline imposed by clause (i) of this subparagraph for a period of 6 months if the Commission receives consent from the relevant applicant.

added “(II) Applicability—If the Commission approves a request for an extension under subclause (I), such extension shall apply to the applicable covered application and the Federal authorization for which the extension was requested.

added “(C) Effect of failure to meet deadline

added “(i) Deemed approval—Any covered application submitted pursuant to subparagraph (A), or Federal authorization that is required with respect to such covered application, that is not approved by the applicable deadline under subparagraph (B) shall be deemed approved in perpetuity.

added “(ii) Compliance—A person carrying out activities under a covered application or Federal authorization that has been deemed approved under clause (i) shall comply with the requirements of the Natural Gas Act.

added “(c) Judicial review

added “(1) Reviewable claims

added “(A) In general—No court shall have jurisdiction to review a claim with respect to the approval of a covered application or Federal authorization under subparagraph (B) or (C)(i) of subsection (b)(2), except for a claim under chapter 7 of title 5, United States Code, filed not later than 180 days after the date of such approval by—

added “(i) the applicant; or

added “(ii) a person who has suffered, or likely and imminently will suffer, direct and irreparable economic harm from the approval.

added “(B) Claims by certain non-applicants—An association may only bring a claim on behalf of one or more of its members pursuant to subparagraph (A)(ii) if each member of the association has suffered, or likely and imminently will suffer, the harm described in subparagraph (A)(ii).

added “(2) Standard of review—If an applicant or other person brings a claim described in paragraph (1) with respect to the approval of a covered application or Federal authorization under subsection (b)(2)(B), the court shall hold unlawful and set aside any agency actions, findings, and conclusions in accordance with section 706(2) of title 5, United States Code, except that, for purposes of the application of subparagraph (E) of such section, the court shall apply such subparagraph by substituting “clear and convincing evidence” for “substantial evidence”.

added “(3) Exclusive jurisdiction—The United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction over any claim—

added “(A) alleging the invalidity of subsection (b); or

added “(B) that an agency action relating to a covered application or Federal authorization under subsection (b) is beyond the scope of authority conferred by the Federal law under which such agency action is made.”

removed The Natural Gas Act is amended by adding after section 15 (15 U.S.C. 717n) the following:

removed “15A. Expedited Permitting

removed “(a) Definitions—In this section:

removed “(1) Covered application—The term “covered application” means an application for an authorization under section 3 or a certificate of public convenience and necessity under section 7, as applicable, for activities that include construction.

removed “(2) Federal authorization—The term “Federal authorization” has the meaning given such term in section 15(a).

removed “(b) Expedited review

removed “(1) Notification of election and payment of fee—Prior to submitting a covered application, an applicant may elect to obtain an expedited review of all Federal authorizations required for the approval of such covered application by—

removed “(A) submitting to the Commission a written notification—

removed “(i) of the election; and

removed “(ii) that identifies each Federal authorization required for the approval of the covered application and each Federal, State, interstate, or Tribal agency that will consider an aspect of each such Federal authorization; and

removed “(B) making a payment to the Secretary of the Treasury in an amount that is the lesser of—

removed “(i) one percent of the expected cost of the applicable construction, as determined by the applicant; or

removed “(ii) $10,000,000 (adjusted for inflation, as the Secretary of the Treasury determines necessary).

removed “(2) Submission and review of applications

removed “(A) Application—Not later than 60 days after the date on which an applicant elects to obtain an expedited review under paragraph (1), the applicant shall submit to the Commission the covered application for which such election for an expedited review was made, which shall include—

removed “(i) the scope of the applicable activities, including capital investment, siting, temporary construction, and final workforce numbers;

removed “(ii) the industrial sector of the applicant, as classified by the North American Industry Classification System; and

removed “(iii) a list of the statutes and regulations that are relevant to the covered application.

removed “(B) Approval

removed “(i) Standard deadline—Except as provided in clause (ii), not later than one year after the date on which an applicant submits a covered application pursuant to subparagraph (A)—

removed “(I) each Federal, State, interstate, or Tribal agency identified under paragraph (1)(A)(ii) shall—

removed “(aa) review the relevant Federal authorization identified under such paragraph; and

removed “(bb) subject to any conditions determined by such agency to be necessary to comply with the requirements of the Federal law under which such approval is required, approve such Federal authorization; and

removed “(II) the Commission shall—

removed “(aa) review the covered application; and

removed “(bb) subject to any conditions determined by the Commission to be necessary to comply with the requirements of this Act, approve the covered application.

removed “(ii) Extended deadline

removed “(I) Extension—With respect to a covered application submitted pursuant to subparagraph (A), the Commission may approve a request by an agency identified under paragraph (1)(A)(ii) for an extension of the one-year deadline imposed by clause (i) of this subparagraph for a period of 6 months if the Commission receives consent from the relevant applicant.

removed “(II) Applicability—If the Commission approves a request for an extension under subclause (I), such extension shall apply to the applicable covered application and the Federal authorization for which the extension was requested.

removed “(C) Effect of failure to meet deadline

removed “(i) Deemed approval—Any covered application submitted pursuant to subparagraph (A), or Federal authorization that is required with respect to such covered application, that is not approved by the applicable deadline under subparagraph (B) shall be deemed approved in perpetuity, notwithstanding any procedural requirements relating to such approval under the Federal law under which such approval was required (including any requirements applicable to the effective period of a Federal authorization).

removed “(ii) Compliance—A person carrying out activities under a covered application or Federal authorization that has been deemed approved under clause (i) shall comply with the requirements of the Federal law under which such approval was required (other than with respect to any procedural requirements relating to such approval, including any requirements relating to the effective period of the Federal authorization).

removed “(c) Judicial review

removed “(1) Reviewable claims

removed “(A) In general—Notwithstanding any other provision of law, no court shall have jurisdiction to review a claim with respect to the approval of a covered application or Federal authorization under subparagraph (B) or (C)(i) of subsection (b)(2), except for a claim under chapter 7 of title 5, United States Code, filed not later than 180 days after the date of such approval by—

removed “(i) the applicant; or

removed “(ii) a person who has suffered, or likely and imminently will suffer, direct and irreparable economic harm from the approval.

removed “(B) Claims by certain non-applicants—An association may only bring a claim on behalf of one or more of its members pursuant to subparagraph (A)(ii) if each member of the association has suffered, or likely and imminently will suffer, the harm described in subparagraph (A)(ii).

removed “(2) Standard of review—If an applicant or other person brings a claim described in paragraph (1) with respect to the approval of a covered application or Federal authorization under subsection (b)(2)(B), the court shall hold unlawful and set aside any agency actions, findings, and conclusions in accordance with section 706(2) of title 5, United States Code, except that, for purposes of the application of subparagraph (E) of such section, the court shall apply such subparagraph by substituting “clear and convincing evidence” for “substantial evidence”.

removed “(3) Exclusive jurisdiction—Notwithstanding any other provision of law, the United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction over any claim—

removed “(A) alleging the invalidity of subsection (b); or

removed “(B) that an agency action relating to a covered application or Federal authorization under subsection (b) is beyond the scope of authority conferred by the Federal law under which such agency action is made.”

removed The Natural Gas Act is amended by inserting after section 7 (15 U.S.C. 717f) the following:

removed “7A. Carbon dioxide, hydrogen, and petroleum pipeline permitting

removed “(a) Covered pipeline defined—In this section, the term covered pipeline means—

removed “(1) a pipeline or pipeline facility for the transportation of carbon dioxide that is regulated under chapter 601 of title 49, United States Code, pursuant to section 60102(i) of such chapter;

removed “(2) a gas pipeline facility, as such term is defined in section 60101 of title 49, United States Code, for the transportation of hydrogen that is regulated under chapter 601 of such title; or

removed “(3) a hazardous liquid pipeline facility, as such term is defined in section 60101 of title 49, United States Code, for the transportation of petroleum or a petroleum product that is regulated under chapter 601 of such title.

removed “(b) Application and fee—Any person may submit to the Commission—

removed “(1) an application for a license authorizing the whole or any part of the operation, sale, service, construction, extension, or acquisition of a covered pipeline, which application shall be made in the same manner as, and in accordance with the requirements for, an application for a certificate of public convenience and necessity under section 7(d); and

removed “(2) a fee in the amount of $10,000,000 for the consideration of such application.

removed “(c) Procedure

removed “(1) In general—With respect to each application for which a fee is submitted under subsection (b), the Commission shall—

removed “(A) consider the application in accordance with the procedures applicable to an application for a certificate of public convenience and necessity under the matter preceding the proviso in section 7(c)(1)(B), including the procedure provided in section 7(e); and

removed “(B) in accordance with section 7(e), issue the license for which the application was submitted or deny such application.

removed “(2) Necessary modifications—For purposes of this section, the Commission may modify procedures in place under section 7 as the Commission determines necessary to apply such procedures to the consideration, issuance, or denial of an application under this section.

removed “(d) Effect of license—Notwithstanding any other provision of law, if the Commission issues a license under subsection (c)(1) of this section and the licensee is in compliance with such license, no requirement of State or local law that requires approval of the location of the covered pipeline with respect to which the license is issued may be enforced against the licensee.

removed “(e) Application to other provisions

removed “(1) Extension of facilities; abandonment of service—For purposes of section 7—

removed “(A) subsection (b) of such section shall be applied with respect to this section by substituting “licensee under section 7A” for “natural-gas company”;

removed “(B) subsection (c)(2) of such section shall be applied with respect to this section—

removed “(i) by substituting “licensee under section 7A” for “natural-gas company”; and

removed “(ii) by substituting “petroleum or a petroleum product” for “natural gas” each place it appears;

removed “(C) subsection (f)(1) shall be applied with respect to this section—

removed “(i) by substituting “license under section 7A” for “authorization under this section”; and

removed “(ii) by substituting “licensee under section 7A” for “natural-gas company”;

removed “(D) subsection (f)(2) shall be applied with respect to this section—

removed “(i) by substituting “transported liquid or gas is consumed” for “gas is consumed”; and

removed “(ii) by substituting “a liquid or gas to another licensee under section 7A” for “natural gas to another natural gas company”;

removed “(E) subsection (g) shall be applied with respect to this section—

removed “(i) by substituting “licenses under section 7A” for “certificates of public convenience and necessity”; and

removed “(ii) by substituting “licensee under section 7A” for “natural-gas company”;

removed “(F) subsection (h) of such section shall be applied with respect to this section—

removed “(i) by substituting “licensee under section 7A” for “holder of a certificate of public convenience and necessity”; and

removed “(ii) by substituting “to carry out an activity authorized by the license issued under such section” for “to construct, operate, and maintain a pipe line or pipe lines for the transportation of natural gas, and the necessary land or other property, in addition to right-of-way, for the location of compressor stations, pressure apparatus, or other stations or equipment necessary to the proper operation of such pipe line or pipe lines”.

removed “(2) Process coordination; hearings; rules of procedure—For purposes of applying section 15 with respect to this section, each reference to an application in subsection (a) of such section shall be considered to be a reference to an application for a license under this section.

removed “(3) Rehearing; court review of orders—For purposes of section 19—

removed “(A) subsection (b) of such section shall be applied with respect to this section by substituting “person who submitted the relevant application and paid a fee under section 7A” for “natural gas company”; and

removed “(B) subsection (d) of such section shall be applied with respect to this section by substituting “covered pipeline with respect to which an application and fee has been submitted under section 7A” for “facility subject to section 3 or section 7” each place it appears.

removed “(4) Enforcement of Act; regulations and orders—For purposes of section 20(d), paragraph (1) of such section shall be applied with respect to this section by substituting “company that is a licensee under section 7A” for “natural gas company”.”

changed The final rule rules issued by the Environmental Protection Agency relating to “Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards” (86 Fed. Reg. 74434 (December 30, 2021)) and “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles” (89 Fed. Reg. 27842 (April 18, 2024)) shall have no force or effect.

changed The final rule rules issued by the National Highway Traffic Safety Administration relating to “Corporate Average Fuel Economy Standards for Model Years 2024–2026 Passenger Cars and Light Trucks” (87 Fed. Reg. 25710 (May 2, 2022)) and “Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond” (89 Fed. Reg. 52540 (June 24, 2024)) shall have no force or effect.

Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by section 44103, is further amended—

“(89) provide that the State shall comply with the eligibility verification requirements under subsection (ww), except that this paragraph shall apply only in the case of the 50 States and the District of Columbia.”

“(ww) Verification of certain eligibility criteria

“(1) In general—For purposes of subsection (a)(89), the eligibility verification requirements, beginning January 1, 2028, are as follows:

“(A) Quarterly screening to verify enrollee status—The State shall, not less frequently than quarterly, review the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased.

“(B) Disenrollment under State plan—If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall—

changed “(i) treat such information as factual information confirming the death of a beneficiary for purposes of section 431.213(a) of title 42, Code of Federal Regulations (or any successor regulation);Regulations;

“(ii) disenroll such individual from the State plan (or waiver of such plan); and

“(iii) discontinue any payments for medical assistance under this title made on behalf of such individual (other than payments for any items or services furnished to such individual prior to the death of such individual).

“(C) Reinstatement of coverage in the event of error—If a State determines that an individual was misidentified as deceased based on information obtained from the Death Master File and was erroneously disenrolled from medical assistance under the State plan (or waiver of such plan) based on such misidentification, the State shall immediately re-enroll such individual under the State plan (or waiver of such plan), retroactive to the date of such disenrollment.

“(2) Rule of construction—Nothing under this subsection shall be construed to preclude the ability of a State to use other electronic data sources to timely identify potentially deceased beneficiaries, so long as the State is also in compliance with the requirements of this subsection (and all other requirements under this title relating to Medicaid eligibility determination and redetermination).”

“(i) Subject to clause (ii), the Secretary”

“(ii) The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the difference between—

“(I) the amount of the reduction required under subparagraph (A) for such fiscal year (without application of this subparagraph); and

“(II) the sum of the erroneous excess payments for medical assistance described in subclauses (I) and (III) of subparagraph (D)(i) made for such fiscal year.”

“(III) payments (other than payments described in subclause (I)) for items and services furnished to an eligible individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services.”

added “(vi) In determining the amount of erroneous excess payments for medical assistance under clause (i), the Secretary shall include any payments described in such clause that are identified under the payment error rate measurement (PERM) program, the Medicaid Eligibility Quality Control (MEQC) program, an audit conducted by the Inspector General of the Department of Health and Human Services, or any other independent audit made by the Secretary.”

Section 1902(e)(14) of the Social Security Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end the following new subparagraph:

changed “(L) Frequency of eligibility redeterminations for certain individuals—Beginning on October 1, 2027, in the case individuals—With respect to redeterminations of an individual enrolled under subsection (a)(10)(A)(i)(VIII), a State shall redetermine the eligibility of such individual for medical assistance under the a State plan of such State (or a waiver of such plan) scheduled on or after December 31, 2026, a State shall make such a redetermination once every 6 months.”months for the following individuals:

added “(i) Individuals enrolled under subsection (a)(10)(A)(i)(VIII).

added “(ii) Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII).”

Section 1905 of the Social Security Act (42 U.S.C. 1395d) is amended—

“(C) Specified State—The term “specified State” means, with respect to a quarter, a State that—

changed “(i) provides any form of financial assistance during such quarter, in whole or in part, whether or not made under a State plan (or waiver of such plan) under this title or under another program established by the State, and regardless of the source of funding for such assistance, to or on behalf of an alien who is not a qualified alien and is not a child or otherwise pregnant woman who is lawfully residing in the United States and receiving medical assistance pursuant to section 1903(v)(4), for the purchasing of health insurance coverage (as defined in section 2791(b)(1) of the Public Health Service Act) for an alien who is not a qualified alien and is not such a child or otherwise lawfully residing in the United States; pregnant woman; or

changed “(ii) provides any form of comprehensive health benefits coverage during such quarter, whether or not under a State plan (or wavier of such plan) under this title or under another program established by the State, and regardless of the source of funding for such coverage, to an alien who is not a qualified alien and is not such a child or otherwise lawfully residing in the United States.pregnant woman.

“(D) Immigration terms

“(i) Alien—The term “alien” has the meaning given such term in section 101(a) of the Immigration and Nationality Act.

“(ii) Qualified alien—The term “qualified alien” has the meaning given such term in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except that—

changed “(I) the reference to “at the time the such term does not include an alien applies for, receives, or attempts to receive a Federal public benefit” described in subsection (b) (b)(4) of such section shall be treated as (other than a reference to “at the time the qualified alien is provided comprehensive health benefits coverage described in clause (ii) of under section 1905(y)(C) of the Social Security Act or is provided with financial assistance described in clause (i) 402(b)(2) of such section, as applicable”; andAct);

changed “(II) the references reference to “(in “at the opinion of time the agency providing such benefits)” alien applies for, receives, or attempts to receive a Federal public benefit” in subsection (c) (b) of such section 431 shall be treated as references a reference to “(in “at the opinion of time the State in which such alien is provided comprehensive health benefits coverage described in clause (ii) of section 1905(y)(C) of the Social Security Act or such is provided with financial assistance is provided, described in clause (i) of such section, as applicable)”.”applicable”; and

added “(III) the references to “(in the opinion of the agency providing such benefits)” in subsection (c) of such section 431 shall be treated as references to “(in the opinion of the State in which such comprehensive health benefits coverage or such financial assistance is provided, as applicable)”.”

“(vi) shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the month preceding the month in which such individual made application (or application was made on behalf of such individual) for such assistance.”

“(1) Determining pharmacy actual acquisition costs—The Secretary shall conduct a survey of retail community pharmacy drug prices and applicable non-retail pharmacy drug prices to determine national average drug acquisition cost benchmarks (as such term is defined by the Secretary) as follows:

“(A) Use of vendor—The Secretary may contract services for—

“(i) with respect to retail community pharmacies, the determination of retail survey prices of the national average drug acquisition cost for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies;

“(ii) with respect to applicable non-retail pharmacies—

“(I) the determination of survey prices, separate from the survey prices described in clause (i), of the non-retail national average drug acquisition cost for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies; and

“(II) at the discretion of the Secretary, for each type of applicable non-retail pharmacy, the determination of survey prices, separate from the survey prices described in clause (i) or subclause (I) of this clause, of the national average drug acquisition cost for such type of pharmacy for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies; and”

“(ii) The vendor must update the Secretary no less often than monthly on the survey prices for covered outpatient drugs.

“(iii) The vendor must differentiate, in collecting and reporting survey data, for all cost information collected, whether a pharmacy is a retail community pharmacy or an applicable non-retail pharmacy, including whether such pharmacy is an affiliate (as defined in subsection (k)(14)), and, in the case of an applicable non-retail pharmacy, which type of applicable non-retail pharmacy it is using the relevant pharmacy type indicators included in the guidance required by subsection (d)(2) of section 44123 of the Act titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14”.”

“(F) Survey reporting—In order to meet the requirement of section 1902(a)(54), a State shall require that any retail community pharmacy or applicable non-retail pharmacy in the State that receives any payment, reimbursement, administrative fee, discount, rebate, or other price concession related to the dispensing of covered outpatient drugs to individuals receiving benefits under this title, regardless of whether such payment, reimbursement, administrative fee, discount, rebate, or other price concession is received from the State or a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)) directly or from a pharmacy benefit manager or another entity that has a contract with the State or a managed care entity or other specified entity (as so defined), shall respond to surveys conducted under this paragraph.

“(G) Survey information—Information on national drug acquisition prices obtained under this paragraph shall be made publicly available in a form and manner to be determined by the Secretary and shall include at least the following:

“(i) The monthly response rate to the survey including a list of pharmacies not in compliance with subparagraph (F).

“(ii) The sampling methodology and number of pharmacies sampled monthly.

“(iii) Information on price concessions to pharmacies, including discounts, rebates, and other price concessions, to the extent that such information may be publicly released and has been collected by the Secretary as part of the survey.

“(H) Penalties

“(i) In general—Subject to clauses (ii), (iii), and (iv), the Secretary shall enforce the provisions of this paragraph with respect to a pharmacy through the establishment of civil money penalties applicable to a retail community pharmacy or an applicable non-retail pharmacy.

“(ii) Basis for penalties—The Secretary shall impose a civil money penalty established under this subparagraph on a retail community pharmacy or applicable non-retail pharmacy if—

“(I) the retail pharmacy or applicable non-retail pharmacy refuses or otherwise fails to respond to a request for information about prices in connection with a survey under this subsection;

“(II) knowingly provides false information in response to such a survey; or

“(III) otherwise fails to comply with the requirements established under this paragraph.

“(iii) Parameters for penalties

“(I) In general—A civil money penalty established under this subparagraph may be assessed with respect to each violation, and with respect to each non-compliant retail community pharmacy (including a pharmacy that is part of a chain) or non-compliant applicable non-retail pharmacy (including a pharmacy that is part of a chain), in an amount not to exceed $100,000 for each such violation.

“(II) Considerations—In determining the amount of a civil money penalty imposed under this subparagraph, the Secretary may consider the size, business structure, and type of pharmacy involved, as well as the type of violation and other relevant factors, as determined appropriate by the Secretary.

“(iv) Rule of application—The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this subparagraph in the same manner as such provisions apply to a civil money penalty or proceeding under section 1128A(a).

“(I) Limitation on use of applicable non-retail pharmacy pricing information—No State shall use pricing information reported by applicable non-retail pharmacies under subparagraph (A)(ii) to develop or inform payment methodologies for retail community pharmacies.”

“(4) Oversight

“(A) In general—The Inspector General of the Department of Health and Human Services shall conduct periodic studies of the survey data reported under this subsection, as appropriate, including with respect to substantial variations in acquisition costs or other applicable costs, as well as with respect to how internal transfer prices and related party transactions may influence the costs reported by pharmacies that are affiliates (as defined in subsection (k)(13)) or are owned by, controlled by, or related under a common ownership structure with a wholesaler, distributor, or other entity that acquires covered outpatient drugs relative to costs reported by pharmacies not affiliated with such entities. The Inspector General shall provide periodic updates to Congress on the results of such studies, as appropriate, in a manner that does not disclose trade secrets or other proprietary information.

“(B) Appropriation—There is appropriated to the Inspector General of the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, $5,000,000 for fiscal year 2026, to remain available until expended, to carry out this paragraph.”

“(12) Applicable non-retail pharmacy—The term applicable non-retail pharmacy means a pharmacy that is licensed as a pharmacy by the State and that is not a retail community pharmacy, including a pharmacy that dispenses prescription medications to patients primarily through mail and specialty pharmacies. Such term does not include nursing home pharmacies, long-term care facility pharmacies, hospital pharmacies, clinics, charitable or not-for-profit pharmacies, government pharmacies, or low dispensing pharmacies (as defined by the Secretary).

“(13) Affiliate—The term affiliate means any entity that is owned by, controlled by, or related under a common ownership structure with a pharmacy benefit manager or a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)).”

“(6) Transparent prescription drug pass-through pricing required

“(A) In general—A contract between the State and a pharmacy benefit manager (referred to in this paragraph as a “PBM”), or a contract between the State and a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D) and collectively referred to in this paragraph as the “entity”) that includes provisions making the entity responsible for coverage of covered outpatient drugs dispensed to individuals enrolled with the entity, shall require that payment for such drugs and related administrative services (as applicable), including payments made by a PBM on behalf of the State or entity, is based on a transparent prescription drug pass-through pricing model under which—

“(i) any payment made by the entity or the PBM (as applicable) for such a drug—

“(I) is limited to—

“(aa) ingredient cost; and

“(bb) a professional dispensing fee that is not less than the professional dispensing fee that the State would pay if the State were making the payment directly in accordance with the State plan;

“(II) is passed through in its entirety (except as reduced under Federal or State laws and regulations in response to instances of waste, fraud, or abuse) by the entity or PBM to the pharmacy or provider that dispenses the drug; and

changed “(III) is made in a manner that is consistent with sections 447.502, 447.512, 447.514, and 447.518 of title 42, Code of Federal Regulations (or any successor regulation) as if such requirements applied directly to the entity or the PBM, except that any payment by the entity or the PBM for the ingredient cost of such drug purchased by a covered entity (as defined in subsection (a)(5)(B)) may exceed the actual acquisition cost (as defined in 447.502 of title 42, Code of Federal Regulations, or any successor regulation) Regulations) for such drug if—

“(aa) such drug was subject to an agreement under section 340B of the Public Health Service Act;

“(bb) such payment for the ingredient cost of such drug does not exceed the maximum payment that would have been made by the entity or the PBM for the ingredient cost of such drug if such drug had not been purchased by such covered entity; and

“(cc) such covered entity reports to the Secretary (in a form and manner specified by the Secretary), on an annual basis and with respect to payments for the ingredient costs of such drugs so purchased by such covered entity that are in excess of the actual acquisition costs for such drugs, the aggregate amount of such excess;

“(ii) payment to the entity or the PBM (as applicable) for administrative services performed by the entity or PBM is limited to an administrative fee that reflects the fair market value (as defined by the Secretary) of such services;

“(iii) the entity or the PBM (as applicable) makes available to the State, and the Secretary upon request in a form and manner specified by the Secretary, all costs and payments related to covered outpatient drugs and accompanying administrative services (as described in clause (ii)) incurred, received, or made by the entity or the PBM, broken down (as specified by the Secretary), to the extent such costs and payments are attributable to an individual covered outpatient drug, by each such drug, including any ingredient costs, professional dispensing fees, administrative fees (as described in clause (ii)), post-sale and post-invoice fees, discounts, or related adjustments such as direct and indirect remuneration fees, and any and all other remuneration, as defined by the Secretary; and

“(iv) any form of spread pricing whereby any amount charged or claimed by the entity or the PBM (as applicable) that exceeds the amount paid to the pharmacies or providers on behalf of the State or entity, including any post-sale or post-invoice fees, discounts, or related adjustments such as direct and indirect remuneration fees or assessments, as defined by the Secretary, (after allowing for an administrative fee as described in clause (ii)) is not allowable for purposes of claiming Federal matching payments under this title.

“(B) Publication of information—The Secretary shall publish, not less frequently than on an annual basis and in a manner that does not disclose the identity of a particular covered entity or organization, information received by the Secretary pursuant to subparagraph (A)(iii)(III) that is broken out by State and by each of the following categories of covered entity within each such State:

“(i) Covered entities described in subparagraph (A) of section 340B(a)(4) of the Public Health Service Act.

“(ii) Covered entities described in subparagraphs (B) through (K) of such section.

“(iii) Covered entities described in subparagraph (L) of such section.

“(iv) Covered entities described in subparagraph (M) of such section.

“(v) Covered entities described in subparagraph (N) of such section.

“(vi) Covered entities described in subparagraph (O) of such section.”

“(14) Pharmacy benefit manager—The term “pharmacy benefit manager” means any person or entity that, either directly or through an intermediary, acts as a price negotiator or group purchaser on behalf of a State, managed care entity (as defined in section 1903(m)(9)(D)), or other specified entity (as so defined), or manages the prescription drug benefits provided by a State, managed care entity, or other specified entity, including the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the managing of appeals or grievances related to the prescription drug benefits, contracting with pharmacies, controlling the cost of covered outpatient drugs, or the provision of services related thereto. Such term includes any person or entity that acts as a price negotiator (with regard to payment amounts to pharmacies and providers for a covered outpatient drug or the net cost of the drug) or group purchaser on behalf of a State, managed care entity, or other specified entity or that carries out 1 or more of the other activities described in the preceding sentence, irrespective of whether such person or entity calls itself a pharmacy benefit manager.”

“(10) No payment shall be made under this title to a State with respect to expenditures incurred by the State for payment for services provided by an other specified entity (as defined in paragraph (9)(D)(iii)) unless such services are provided in accordance with a contract between the State and such entity which satisfies the requirements of paragraph (2)(A)(xiii).”

changed “(28) with respect to any amount expended for specified gender transition procedures (as defined in section 1905(kk)) furnished to an individual under 18 years of age enrolled in a State plan (or waiver of such plan).”

“(kk) Specified gender transition procedures

“(1) In general—For purposes of section 1903(i)(28), except as provided in paragraph (2), the term specified gender transition procedure means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body’s development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual’s sex:

“(A) Performing any surgery, including—

“(i) castration;

“(ii) sterilization;

“(iii) orchiectomy;

“(iv) scrotoplasty;

“(v) vasectomy;

“(vi) tubal ligation;

“(vii) hysterectomy;

“(viii) oophorectomy;

“(ix) ovariectomy;

“(x) metoidioplasty;

“(xi) clitoroplasty;

“(xii) reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty;

“(xiii) penectomy;

“(xiv) phalloplasty;

“(xv) vaginoplasty;

“(xvi) vaginectomy;

“(xvii) vulvoplasty;

“(xviii) reduction thyrochondroplasty;

“(xix) chondrolaryngoplasty;

“(xx) mastectomy; and

“(xxi) any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual.

“(B) Any placement of chest implants to create feminine breasts or any placement of erection or testicular prostheses.

“(C) Any placement of fat or artificial implants in the gluteal region.

“(D) Administering, prescribing, or dispensing to an individual medications, including—

“(i) gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and

“(ii) testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex.

“(2) Exception—Paragraph (1) shall not apply to the following when furnished to an individual by a health care provider with the consent of such individual’s parent or legal guardian:

“(A) Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty.

“(B) Medically necessary procedures or treatments to correct for—

“(i) a medically verifiable disorder of sex development, including—

“(I) 46,XX chromosomes with virilization;

“(II) 46,XY chromosomes with undervirilization; and

“(III) both ovarian and testicular tissue;

“(ii) sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing;

“(iii) infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in imminent danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or

“(iv) procedures to restore or reconstruct the body of the individual in order to correspond to the individual’s sex after one or more previous procedures described in paragraph (1), which may include the removal of a pseudo phallus or breast augmentation.

“(3) Sex—For purposes of paragraph (1), the term sex means either male or female, as biologically determined and defined in paragraphs (4) and (5), respectively.

“(4) Female—For purposes of paragraph (3), the term female means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization.

“(5) Male—For purposes of paragraph (3), the term male means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.”

Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended by adding at the end the following new subsection:

“(g) Requirement of budget neutrality for Medicaid demonstration projects

changed “(1) In general—Beginning on the date of the enactment of this subsection, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a “Medicaid demonstration project”) unless the Secretary certifies that such project is not expected to result in an increase in the amount of Federal expenditures compared to the amount that such expenditures would otherwise be in the absence of such project.

changed “(2) Treatment of savings—In the event that Federal expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to any subsequent approval period for such project for purposes of taking the difference between such expenditures into account.”

“(xx) Community engagement requirement for applicable individuals

changed “(1) In general—Beginning January 1, 2029, not later than December 31, 2026, or, at the option of the State, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under paragraph (2)—

“(A) in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and

“(B) in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive—

“(i) during the period between such individual’s most recent determination (or redetermination, as applicable) of eligibility and such individual’s next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or

“(ii) in the case of a State that has elected under paragraph (4) to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual.

“(2) Community engagement compliance described—Subject to paragraph (3), an applicable individual demonstrates community engagement under this paragraph for a month if such individual meets 1 or more of the following conditions with respect to such month, as determined in accordance with criteria established by the Secretary through regulation:

“(A) The individual works not less than 80 hours.

“(B) The individual completes not less than 80 hours of community service.

“(C) The individual participates in a work program for not less than 80 hours.

“(D) The individual is enrolled in an educational program at least half-time.

“(E) The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours.

“(F) The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours.

“(3) Exceptions

“(A) Mandatory exception for certain individuals—The State shall deem an applicable individual to have demonstrated community engagement under paragraph (2) for a month if—

“(i) for part or all of such month, the individual—

“(I) was a specified excluded individual (as defined in paragraph (9)(A)(ii)); or

“(II) was—

“(aa) under the age of 19;

“(bb) pregnant or entitled to postpartum medical assistance under paragraph (5) or (16) of subsection (e);

“(cc) entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; or

“(dd) described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); or

“(ii) at any point during the 3-month period ending on the first day of such month, the individual was an inmate of a public institution.

“(B) Optional exception for short-term hardship events

“(i) In general—The State plan (or waiver of such plan) may provide, in the case of an applicable individual who experiences a short-term hardship event during a month, that the State shall, upon the request of such individual under procedures established by the State (in accordance with standards specified by the Secretary), deem such individual to have demonstrated community engagement under paragraph (2) for such month.

“(ii) Short-term hardship event defined—For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month—

changed “(I) such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate;appropriate; or

“(II) such individual resides in a county (or equivalent unit of local government)—

“(aa) in which there exists an emergency or disaster declared by the President pursuant to the National Emergencies Act or the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or

“(bb) that, subject to a request from the State to the Secretary, made in such form, at such time, and containing such information as the Secretary may require, has an unemployment rate that is at or above the lesser of—

“(AA) 8 percent; or

changed “(BB) 1.5 times the national unemployment rate; orrate.

removed “(III) such individual experiences any other short-term hardship (as defined by the Secretary).

“(4) Option to conduct more frequent compliance verifications—With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under paragraph (1) during each such individual’s regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently.

“(5) Ex parte verifications—For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1), the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data) without requiring, where possible, the applicable individual to submit additional information.

“(6) Procedure in the case of noncompliance

“(A) In general—If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1) (including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under paragraph (3)) the State shall (in accordance with standards specified by the Secretary)—

“(i) provide such individual with the notice of noncompliance described in subparagraph (B);

“(ii)

“(I) provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to—

“(aa) make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was deemed to have demonstrated community engagement under paragraph (3)); or

“(bb) make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and

“(II) if such individual is enrolled under the State plan (or a waiver of such plan) under this title, continue to provide such individual with medical assistance during such 30-calendar-day period; and

“(iii) if no such satisfactory showing is made and the individual is not a specified excluded individual described in paragraph (9)(A)(ii), deny such individual’s application for medical assistance under the State plan (or waiver of such plan) or, as applicable, disenroll such individual from the plan (or waiver of such plan) not later than the end of the month following the month in which such 30-calendar-day period ends, provided that—

“(I) the State first determines whether, with respect to the individual, there is any other basis for eligibility for medical assistance under the State plan (or waiver of such plan) or for another insurance affordability program; and

“(II) the individual is provided written notice and granted an opportunity for a fair hearing in accordance with subsection (a)(3).

“(B) Notice—The notice of noncompliance provided to an applicable individual under subparagraph (A)(i) shall include information (in accordance with standards specified by the Secretary) on—

“(i) how such individual may make a satisfactory showing of compliance with such requirement (as described in subparagraph (A)(ii)) or make a satisfactory showing that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and

“(ii) how such individual may reapply for medical assistance under the State plan (or a waiver of such plan) under this title in the case that such individuals’ application is denied or, as applicable, in the case that such individual is disenrolled from the plan (or waiver).

“(7) Treatment of noncompliant individuals in relation to certain other provisions

“(A) Certain FMAP increases—A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under paragraph (1).

“(B) Other provisions—For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under paragraph (1).

“(8) Outreach

added “(A) In general—In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on—

removed “(A) In general—In accordance with standards specified by the Secretary, beginning not later than October 1, 2028 (or, if earlier, the date that precedes January 1, 2029, by the number of months specified by the State under paragraph (1)(A) plus 3 months), and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on—

“(i) how to comply with such requirement, including an explanation of the exceptions to such requirement under paragraph (3) and the definition of the term “applicable individual” under paragraph (9)(A);

“(ii) the consequences of noncompliance with such requirement; and

“(iii) how to report to the State any change in the individual’s status that could result in—

“(I) the applicability of an exception under paragraph (3) (or the end of the applicability of such an exception); or

“(II) the individual qualifying as a specified excluded individual under paragraph (9)(A)(ii).

“(B) Form of outreach notice—A notice required under subparagraph (A) shall be delivered—

“(i) by regular mail (or, if elected by the individual, in an electronic format); and

“(ii) in 1 or more additional forms, which may include telephone, text message, an internet website, other commonly available electronic means, and such other forms as the Secretary determines appropriate.

“(9) Definitions—In this subsection:

“(A) Applicable individual

“(i) In general—The term “applicable individual” means an individual (other than a specified excluded individual (as defined in clause (ii)))—

“(I) who is eligible to enroll (or is enrolled) under the State plan under subsection (a)(10)(A)(i)(VIII); or

“(II) who—

“(aa) is otherwise eligible to enroll (or is enrolled) under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and as determined in accordance with standards prescribed by the Secretary in regulations); and

“(bb) has attained the age of 19 and is under 65 years of age, is not pregnant, is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, and is not otherwise eligible to enroll under such plan.

“(ii) Specified excluded individual—For purposes of clause (i), the term “specified excluded individual” means an individual, as determined by the State (in accordance with standards specified by the Secretary)—

“(I) who is described in subsection (a)(10)(A)(i)(IX);

“(II) who—

“(aa) is an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act);

“(bb) is a California Indian described in section 809(a) of such Act; or

“(cc) has otherwise been determined eligible as an Indian for the Indian Health Service under regulations promulgated by the Secretary;

“(III) who is the parent, guardian, or caretaker relative of a disabled individual or a dependent child;

“(IV) who is a veteran with a disability rated as total under section 1155 of title 38, United States Code;

“(V) who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual—

“(aa) who is blind or disabled (as defined in section 1614);

“(bb) with a substance use disorder;

“(cc) with a disabling mental disorder;

added “(dd) with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 or more activities of daily living; or

changed “(dd) “(ee) with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 serious or more activities of daily living;complex medical condition;

removed “(ee) with a serious and complex medical condition; or

removed “(ff) subject to the approval of the Secretary, with any other medical condition identified by the State that is not otherwise identified under this clause;

“(VI) who—

“(aa) is in compliance with any requirements imposed by the State pursuant to section 407; or

“(bb) is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 and is not exempt from a work requirement under such Act;

added “(VII) who is participating in a drug addiction or alcoholic treatment and rehabilitation program (as defined in section 3(h) of the Food and Nutrition Act of 2008); or

added “(VIII) who is an inmate of a public institution.

changed “(VII) who is participating in a drug addiction or alcoholic treatment and rehabilitation “(B) Educational program—The term educational program (as defined in section 3(h) of the Food and Nutrition Act of 2008);includes—

changed “(VIII) who is “(i) an inmate institution of a public institution; orhigher education (as defined in section 101 of the Higher Education Act of 1965); and

changed “(IX) who meets such other criteria as “(ii) a program of career and technical education (as defined in section 3 of the Secretary determines appropriate.Carl D. Perkins Career and Technical Education Act of 2006).

removed “(B) Educational program—The term educational program means—

removed “(i) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965);

removed “(ii) a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006); or

removed “(iii) any other educational program that meets such criteria as the Secretary determines appropriate.

“(C) State—The term “State” means 1 of the 50 States or the District of Columbia.

“(D) Work program—The term “work program” has the meaning given such term in section 6(o)(1) of the Food and Nutrition Act of 2008.

“(10) Prohibiting waiver of community engagement requirements—Notwithstanding section 1115(a), the provisions of this subsection may not be waived.”

“(k) Special rules for certain expansion individuals

“(1) Premiums—Beginning October 1, 2028, the State plan shall provide that in the case of a specified individual (as defined in paragraph (3)) who is eligible under the plan, no enrollment fee, premium, or similar charge will be imposed under the plan.

“(2) Required imposition of cost sharing

“(A) In general—Subject to subparagraph (B) and subsection (j), in the case of a specified individual, the State plan shall, beginning October 1, 2028, provide for the imposition of such deductions, cost sharing, or similar charges determined appropriate by the State (in an amount greater than $0) with respect to medical assistance furnished to such an individual.

“(B) Limitations

changed “(i) Exclusion of certain services—In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to services described in any of subparagraphs (B) through (J) of subsection (a)(2) (a)(2), or any primary care services, mental health care services, or substance use disorder services, furnished to a specified individual.

“(ii) Item and service limitation

“(I) In general—Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to an item or service furnished to a specified individual exceed $35.

“(II) Special rules for prescription drugs—In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section.

“(iii) Maximum limit on cost sharing—The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State).

changed “(C) Cases of nonpayment—Notwithstanding subsection (e) or any other provision of law, (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis.

changed “(3) Specified individual defined—For purposes of this subsection, the term “specified individual” means an individual enrolled under section 1902(a)(10)(A)(i)(VIII) who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved.”involved and—

added “(A) is enrolled under section 1902(a)(10)(A)(i)(VIII); or

added “(B) is described in such subsection and otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII).”

“(A) In general—The Secretary”

“(I) for enrollment for plan years beginning before January 1, 2026, as determined by the Secretary; and

“(II) for enrollment for plan years beginning on or after January 1, 2026, beginning on November 1 and ending on December 15 of the preceding calendar year;”

“(B) Prohibited special enrollment period—With respect to plan years beginning on or after January 1, 2026, the Secretary may not require an Exchange to provide for a special enrollment period for an individual on the basis of the relationship of the income of such individual to the poverty line, other than a special enrollment period based on a change in circumstances or the occurrence of a specific event.”

“(8) Prohibited enrollment periods—An Exchange may not provide for, with respect to enrollment for plan years beginning on or after January 1, 2026—

“(A) an annual open enrollment period other than the period described in subparagraph (A)(i) of subsection (c)(6); or

“(B) a special enrollment period described in subparagraph (B) of such subsection.

“(9) Verification of eligibility for special enrollment periods

“(A) In general—With respect to enrollment for plan years beginning on or after January 1, 2026, an Exchange shall verify that each individual seeking to enroll in a qualified health plan offered by the Exchange during a special enrollment period selected under subparagraph (B) is eligible to enroll during such special enrollment period prior to enrolling such individual in such plan.

“(B) Selected special enrollment periods—For purposes of subparagraph (A), an Exchange shall select one or more special enrollment periods for a plan year with respect to which such Exchange shall conduct the verification required under subparagraph (A) such that the Exchange conducts such verification for not less than 75 percent of all individuals enrolling in a qualified health plan offered by the Exchange during any special enrollment period with respect to such plan year.”

“(C) Requiring verification of income and family size when tax data is unavailable—For plan years beginning on or after January 1, 2026, for purposes of subparagraph (A), in the case that the Exchange requests data from the Secretary of the Treasury regarding an individual’s household income and the Secretary of the Treasury does not return such data, such information may not be verified solely on the basis of the attestation of such individual with respect to such household income, and the Exchange shall take the actions described in subparagraph (A).

“(D) Requiring verification of income in the case of certain income discrepancies

“(i) In general—Subject to clause (iii), for plan years beginning on or after January 1, 2026, for purposes of subparagraph (A), in the case that a specified income discrepancy described in clause (ii) of this subparagraph exists with respect to the information provided by an applicant under subsection (b)(3), the household income of such individual shall be treated as inconsistent with information in the records maintained by persons under subsection (c), or as not verified under subsection (d), and the Exchange shall take the actions described in such subparagraph (A).

“(ii) Specified income discrepancy—For purposes of clause (i), a specified income discrepancy exists with respect to the information provided by an applicant under subsection (b)(3) if—

“(I) the applicant attests to a projected annual household income that would qualify such applicant to be an applicable taxpayer under section 36B(c)(1)(A) of the Internal Revenue Code of 1986 with respect to the taxable year involved;

changed “(II) the Exchange receives data from the Secretary of the Treasury or the Commissioner of Social Security, or other reliable, third party data, that indicates that the household income of such applicant is less than the household income that would qualify such applicant to be an applicable taxpayer under such section 36B(c)(1)(A) with respect to the taxable year involved;

“(III) such attested projected annual household income exceeds the income reflected in the data described in subclause (II) by a reasonable threshold established by the Exchange and approved by the Secretary (which shall be not less than 10 percent, and may also be a dollar amount); and

“(IV) the Exchange has not assessed or determined based on the data described in subclause (II) that the household income of the applicant meets the applicable income-based eligibility standard for the Medicaid program under title XIX of the Social Security Act or the State children’s health insurance program under title XXI of such Act.

“(iii) Exclusion of certain individuals ineligible for Medicaid—This subparagraph shall not apply in the case of an applicant who is an alien lawfully present in the United States, who is not eligible for the Medicaid program under title XIX of the Social Security Act by reason of such alien status.”

“(3) Annual requirement to file and reconcile

“(A) In general—For plan years beginning on or after January 1, 2026, in the case of an individual with respect to whom any advance payment of the premium tax credit allowable under section 36B of the Internal Revenue Code of 1986 was made under this section to the issuer of a qualified health plan for the relevant prior tax year, an advance determination of eligibility for such premium tax credit may not be made under this subsection with respect to such individual and such plan year if the Exchange determines, based on information provided by the Secretary of the Treasury, that such individual—

“(i) has not filed an income tax return, as required under sections 6011 and 6012 of such Code (and implementing regulations), for the relevant prior tax year; or

“(ii) as necessary, has not reconciled (in accordance with subsection (f) of such section 36B) the advance payment of the premium tax credit made with respect to such individual for such relevant prior tax year.

“(B) Relevant prior tax year—For purposes of subparagraph (A), the term “relevant prior tax year” means, with respect to the advance determination of eligibility made under this subsection with respect to an individual, the taxable year for which tax return data would be used for purposes of verifying the household income and family size of such individual (as described in section 1411(b)(3)(A)).

“(C) Preliminary attestation—If an individual subject to subparagraph (A) attests that such individual has fulfilled the requirements to file an income tax return for the relevant prior tax year and, as necessary, to reconcile the advance payment of the premium tax credit made with respect to such individual for such relevant prior tax year (as described in clauses (i) and (ii) of such subparagraph), the Secretary may make an initial advance determination of eligibility with respect to such individual and may delay for a reasonable period (as determined by the Secretary) any determination based on information provided by the Secretary of the Treasury that such individual has not fulfilled such requirements.

“(D) Notice—If the Secretary determines that an individual did not meet the requirements described in subparagraph (A) with respect to the relevant prior tax year and notifies the Exchange of such determination, the Exchange shall comply with the notification requirement described in section 155.305(f)(4)(i) of title 45, Code of Federal Regulations (as in effect with respect to plan year 2025).”

“(A) In general—For purposes”

“(B) Update to methodology—For calendar years beginning with 2026, the premium adjustment percentage under this paragraph for such calendar year shall be determined consistent with the methodology published in the Federal Register on April 25, 2019 (84 Fed. Reg. 17537 through 17541).”

“(C) Reduction in advance payment for specified reenrolled individuals

“(i) In general—The amount of an advance payment made under subparagraph (A) to reduce the premium payable for a qualified health plan that provides coverage to a specified reenrolled individual for an applicable month shall be an amount equal to the amount that would otherwise be made under such subparagraph reduced by $5 (or such higher amount as the Secretary determines appropriate).

“(ii) Definitions—In this subparagraph:

“(I) Applicable month—The term “applicable month” means, with respect to a specified reenrolled individual, any month during a plan year beginning on or after January 1, 2027 (or, in the case of an individual reenrolled in a qualified health plan by an Exchange established pursuant to section 1321(c), January 1, 2026) if, prior to the first day of such month, such individual has failed to confirm or update such information as is necessary to redetermine the eligibility of such individual for such plan year pursuant to section 1411(f).

“(II) Specified reenrolled individual—The term “specified reenrolled individual” means an individual who is reenrolled in a qualified health plan and with respect to whom the advance payment made under subparagraph (A) would, without application of any reduction under this subparagraph, reduce the premium payable for a qualified health plan that provides coverage to such an individual to $0.”

“(C) Gender transition procedures—For plan years beginning on or after January 1, 2027, the essential health benefits defined pursuant to paragraph (1) may not include items and services furnished for a gender transition procedure.”

“(f) Gender transition procedure

“(1) In general—In this title, except as provided in paragraph (2), the term “gender transition procedure” means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body’s development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual’s sex:

“(A) Performing any surgery, including—

“(i) castration;

“(ii) sterilization;

“(iii) orchiectomy;

“(iv) scrotoplasty;

“(v) vasectomy;

“(vi) tubal ligation;

“(vii) hysterectomy;

“(viii) oophorectomy;

“(ix) ovariectomy;

“(x) metoidioplasty;

“(xi) clitoroplasty;

“(xii) reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty;

“(xiii) penectomy;

“(xiv) phalloplasty;

“(xv) vaginoplasty;

“(xvi) vaginectomy;

“(xvii) vulvoplasty;

“(xviii) reduction thyrochondroplasty;

“(xix) chondrolaryngoplasty;

“(xx) mastectomy; and

“(xxi) any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual.

“(B) Any placement of chest implants to create feminine breasts or any placement of erection or testicular prosetheses.

“(C) Any placement of fat or artificial implants in the gluteal region.

“(D) Administering, prescribing, or dispensing to an individual medications, including—

“(i) gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and

“(ii) testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex.

“(2) Exception—Paragraph (1) shall not apply to the following:

“(A) Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty.

“(B) Medically necessary procedures or treatments to correct for—

“(i) a medically verifiable disorder of sex development, including—

“(I) 46,XX chromosomes with virilization;

“(II) 46,XY chromosomes with undervirilization; and

“(III) both ovarian and testicular tissue;

“(ii) sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing;

“(iii) infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in imminent danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or

“(iv) procedures to restore or reconstruct the body of the individual in order to correspond to the individual’s sex after one or more previous procedures described in paragraph (1), which may include the removal of a pseudo phallus or breast augmentation.

“(3) Sex—For purposes of this subsection, the term sex means either male or female, as biologically determined and defined by subparagraph (A) and subparagraph (B).

“(A) Female—The term female means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization.

“(B) Male—The term male means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.”

“(4) Clarification of lawful presence—In this title, the term “alien lawfully present in the United States” does not include an alien granted deferred action under the Deferred Action for Childhood Arrivals process pursuant to the memorandum of the Department of Homeland Security entitled “Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children” issued on June 15, 2012.”

“(e) Nonpayment of past premiums

“(1) In general—A health insurance issuer offering individual health insurance coverage may, to the extent allowed under State law, deny such coverage in the case of an individual who owes any amount for premiums for individual health insurance coverage offered by such issuer (or by a health insurance issuer in the same controlled group (as defined in paragraph (3)) as such issuer) in which such individual was previously enrolled.

“(2) Attribution of initial premium payment to owed amount—A health insurance issuer offering individual health insurance coverage may, in the case of an individual described in paragraph (1) and to the extent allowed under State law, attribute the initial premium payment for such coverage applicable to such individual to the amount owed by such individual for premiums for individual health insurance coverage offered by such issuer (or by a health insurance issuer in the same controlled group as such issuer) in which such individual was previously enrolled.

“(3) Controlled group defined—For purposes of this subsection, the term “controlled group” means a group of of two or more persons that is treated as a single employer under section 52(a), 52(b), 414(m), or 414(o) of the Internal Revenue Code of 1986.”

removed “(C) Treatment of former orphan drugs—In calculating the amount of time that has elapsed with respect to the approval of a drug or licensure of a biological product under subparagraph (A)(ii) and subparagraph (B)(ii), respectively, the Secretary shall not take into account any period during which such drug or product was a drug described in paragraph (3)(A).”

added “(4) Treatment of former orphan drugs—In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to “the date of such approval” or “the date of such licensure”, respectively, were instead a reference to “the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)” or “the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)”, respectively.”

“(10) Streamlined enrollment process for eligible out-of-state providers

“(A) In general—The State—

“(i) adopts and implements a process to allow an eligible out-of-State provider to enroll under the State plan (or a waiver of such plan) to furnish items and services to, or order, prescribe, refer, or certify eligibility for items and services for, qualifying individuals without the imposition of screening or enrollment requirements by such State that exceed the minimum necessary for such State to provide payment to an eligible out-of-State provider under such State plan (or a waiver of such plan), such as the provider's name and National Provider Identifier (and such other information specified by the Secretary); and

“(ii) provides that an eligible out-of-State provider that enrolls as a participating provider in the State plan (or a waiver of such plan) through such process shall be so enrolled for a 5-year period, unless the provider is terminated or excluded from participation during such period.

“(B) Definitions—In this paragraph:

“(i) Eligible out-of-state provider—The term eligible out-of-State provider means, with respect to a State, a provider—

“(I) that is located in any other State;

“(II) that—

“(aa) was determined by the Secretary to have a limited risk of fraud, waste, and abuse for purposes of determining the level of screening to be conducted under section 1866(j)(2), has been so screened under such section 1866(j)(2), and is enrolled in the Medicare program under title XVIII; or

“(bb) was determined by the State agency administering or supervising the administration of the State plan (or a waiver of such plan) of such other State to have a limited risk of fraud, waste, and abuse for purposes of determining the level of screening to be conducted under paragraph (1) of this subsection, has been so screened under such paragraph (1), and is enrolled under such State plan (or a waiver of such plan); and

“(III) that has not been—

“(aa) excluded from participation in any Federal health care program pursuant to section 1128 or 1128A;

changed “(bb) excluded from participation in the State plan (or a waiver of such plan) pursuant to part 1002 of title 42, Code of Federal Regulations (or any successor regulation), Regulations, or State law; or

“(cc) terminated from participating in a Federal health care program or the State plan (or a waiver of such plan) for a reason described in paragraph (8)(A).

“(ii) Qualifying individual—The term qualifying individual means an individual under 21 years of age who is enrolled under the State plan (or waiver of such plan).

“(iii) State—The term State means 1 of the 50 States or the District of Columbia.”

“(h) Requirements relating to pharmacy benefit managers—For plan years beginning on or after January 1, 2028:

“(1) Agreements with pharmacy benefit managers—Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall provide that any pharmacy benefit manager acting on behalf of such sponsor has a written agreement with the PDP sponsor under which the pharmacy benefit manager, and any affiliates of such pharmacy benefit manager, as applicable, agree to meet the following requirements:

“(A) No income other than bona fide service fees

“(i) In general—The pharmacy benefit manager and any affiliate of such pharmacy benefit manager shall not derive any remuneration with respect to any services provided on behalf of any entity or individual, in connection with the utilization of covered part D drugs, from any such entity or individual other than bona fide service fees, subject to clauses (ii) and (iii).

“(ii) Incentive payments—For the purposes of this subsection, an incentive payment (as determined by the Secretary) paid by a PDP sponsor to a pharmacy benefit manager (or an affiliate of such pharmacy benefit manager) that is performing services on behalf of such sponsor shall be deemed a “bona fide service fee” (even if such payment does not otherwise meet the definition of such term under paragraph (7)(B)) if such payment is a flat dollar amount, is consistent with fair market value (as specified by the Secretary), is related to services actually performed by the pharmacy benefit manager or affiliate of such pharmacy benefit manager, on behalf of the PDP sponsor making such payment, in connection with the utilization of covered part D drugs, and meets additional requirements, if any, as determined appropriate by the Secretary.

“(iii) Clarification on rebates and discounts used to lower costs for covered part d drugs—Rebates, discounts, and other price concessions received by a pharmacy benefit manager or an affiliate of a pharmacy benefit manager from manufacturers, even if such price concessions are calculated as a percentage of a drug’s price, shall not be considered a violation of the requirements of clause (i) if they are fully passed through to a PDP sponsor and are compliant with all regulatory and subregulatory requirements related to direct and indirect remuneration for manufacturer rebates under this part, including in cases where a PDP sponsor is acting as a pharmacy benefit manager on behalf of a prescription drug plan offered by such PDP sponsor.

changed “(iv) Evaluation of remuneration arrangements—Components of subsets of remuneration arrangements (such as fees or other forms of compensation paid to or retained by the pharmacy benefit manager or affiliate of such pharmacy benefit manager), as determined appropriate by the Secretary, between pharmacy benefit managers or affiliates of such pharmacy benefit managers, as applicable, and other entities involved in the dispensing or utilization of covered part D drugs (including PDP sponsors, manufacturers, pharmacies, and other entities as determined appropriate by the Secretary) pharmacies) shall be subject to review by the Secretary, in consultation with the Office of the Inspector General of the Department of Health and Human Services, as determined appropriate by the Secretary. The Secretary, in consultation with the Office of the Inspector General, shall review whether remuneration under such arrangements is consistent with fair market value (as specified by the Secretary) through reviews and assessments of such remuneration, as determined appropriate.

“(v) Disgorgement—The pharmacy benefit manager shall disgorge any remuneration paid to such pharmacy benefit manager or an affiliate of such pharmacy benefit manager in violation of this subparagraph to the PDP sponsor.

“(vi) Additional requirements—The pharmacy benefit manager shall—

“(I) enter into a written agreement with any affiliate of such pharmacy benefit manager, under which the affiliate shall identify and disgorge any remuneration described in clause (v) to the pharmacy benefit manager; and

“(II) attest, subject to any requirements determined appropriate by the Secretary, that the pharmacy benefit manager has entered into a written agreement described in subclause (I) with any relevant affiliate of the pharmacy benefit manager.

“(B) Transparency regarding guarantees and cost performance evaluations—The pharmacy benefit manager shall—

“(i) define, interpret, and apply, in a fully transparent and consistent manner for purposes of calculating or otherwise evaluating pharmacy benefit manager performance against pricing guarantees or similar cost performance measurements related to rebates, discounts, price concessions, or net costs, terms such as—

changed “(I) generic drug, in a manner consistent with the definition of the term under section 423.4 of title 42, Code of Federal Regulations, or a successor regulation;Regulations;

changed “(II) brand name drug, in a manner consistent with the definition of the term under section 423.4 of title 42, Code of Federal Regulations, or a successor regulation;Regulations;

“(III) specialty drug;

“(IV) rebate; and

“(V) discount;

“(ii) identify any drugs, claims, or price concessions excluded from any pricing guarantee or other cost performance measure in a clear and consistent manner; and

“(iii) where a pricing guarantee or other cost performance measure is based on a pricing benchmark other than the wholesale acquisition cost (as defined in section 1847A(c)(6)(B)) of a drug, calculate and provide a wholesale acquisition cost-based equivalent to the pricing guarantee or other cost performance measure.

“(C) Provision of information

“(i) In general—Not later than July 1 of each year, beginning in 2028, the pharmacy benefit manager shall submit to the PDP sponsor, and to the Secretary, a report, in accordance with this subparagraph, and shall make such report available to such sponsor at no cost to such sponsor in a format specified by the Secretary under paragraph (5). Each such report shall include, with respect to such PDP sponsor and each plan offered by such sponsor, the following information with respect to the previous plan year:

“(I) A list of all drugs covered by the plan that were dispensed including, with respect to each such drug—

“(aa) the brand name, generic or non-proprietary name, and National Drug Code;

“(bb) the number of plan enrollees for whom the drug was dispensed, the total number of prescription claims for the drug (including original prescriptions and refills, counted as separate claims), and the total number of dosage units of the drug dispensed;

“(cc) the number of prescription claims described in item (bb) by each type of dispensing channel through which the drug was dispensed, including retail, mail order, specialty pharmacy, long term care pharmacy, home infusion pharmacy, or other types of pharmacies or providers;

“(dd) the average wholesale acquisition cost, listed as cost per day’s supply, cost per dosage unit, and cost per typical course of treatment (as applicable);

“(ee) the average wholesale price for the drug, listed as price per day’s supply, price per dosage unit, and price per typical course of treatment (as applicable);

“(ff) the total out-of-pocket spending by plan enrollees on such drug after application of any benefits under the plan, including plan enrollee spending through copayments, coinsurance, and deductibles;

“(gg) total rebates paid by the manufacturer on the drug as reported under the Detailed DIR Report (or any successor report) submitted by such sponsor to the Centers for Medicare & Medicaid Services;

“(hh) all other direct or indirect remuneration on the drug as reported under the Detailed DIR Report (or any successor report) submitted by such sponsor to the Centers for Medicare & Medicaid Services;

“(ii) the average pharmacy reimbursement amount paid by the plan for the drug in the aggregate and disaggregated by dispensing channel identified in item (cc);

“(jj) the average National Average Drug Acquisition Cost (NADAC); and

“(kk) total manufacturer-derived revenue, inclusive of bona fide service fees, attributable to the drug and retained by the pharmacy benefit manager and any affiliate of such pharmacy benefit manager.

“(II) In the case of a pharmacy benefit manager that has an affiliate that is a retail, mail order, or specialty pharmacy, with respect to drugs covered by such plan that were dispensed, the following information:

“(aa) The percentage of total prescriptions that were dispensed by pharmacies that are an affiliate of the pharmacy benefit manager for each drug.

“(bb) The interquartile range of the total combined costs paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply for each drug dispensed by pharmacies that are not an affiliate of the pharmacy benefit manager and that are included in the pharmacy network of such plan.

“(cc) The interquartile range of the total combined costs paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply for each drug dispensed by pharmacies that are an affiliate of the pharmacy benefit manager and that are included in the pharmacy network of such plan.

“(dd) The lowest total combined cost paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply, for each drug that is available from any pharmacy included in the pharmacy network of such plan.

“(ee) The difference between the average acquisition cost of the affiliate, such as a pharmacy or other entity that acquires prescription drugs, that initially acquires the drug and the amount reported under subclause (I)(jj) for each drug.

“(ff) A list inclusive of the brand name, generic or non-proprietary name, and National Drug Code of covered part D drugs subject to an agreement with a covered entity under section 340B of the Public Health Service Act for which the pharmacy benefit manager or an affiliate of the pharmacy benefit manager had a contract or other arrangement with such a covered entity in the service area of such plan.

“(III) Where a drug approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act (referred to in this subclause as the “listed drug”) is covered by the plan, the following information:

“(aa) A list of currently marketed generic drugs approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act pursuant to an application that references such listed drug that are not covered by the plan, are covered on the same formulary tier or a formulary tier typically associated with higher cost-sharing than the listed drug, or are subject to utilization management that the listed drug is not subject to.

“(bb) The estimated average beneficiary cost-sharing under the plan for a 30-day supply of the listed drug.

“(cc) Where a generic drug listed under item (aa) is on a formulary tier typically associated with higher cost-sharing than the listed drug, the estimated average cost-sharing that a beneficiary would have paid for a 30-day supply of each of the generic drugs described in item (aa), had the plan provided coverage for such drugs on the same formulary tier as the listed drug.

“(dd) A written justification for providing more favorable coverage of the listed drug than the generic drugs described in item (aa).

“(ee) The number of currently marketed generic drugs approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act pursuant to an application that references such listed drug.

“(IV) Where a reference product (as defined in section 351(i) of the Public Health Service Act) is covered by the plan, the following information:

“(aa) A list of currently marketed biosimilar biological products licensed under section 351(k) of the Public Health Service Act pursuant to an application that refers to such reference product that are not covered by the plan, are covered on the same formulary tier or a formulary tier typically associated with higher cost-sharing than the reference product, or are subject to utilization management that the reference product is not subject to.

“(bb) The estimated average beneficiary cost-sharing under the plan for a 30-day supply of the reference product.

“(cc) Where a biosimilar biological product listed under item (aa) is on a formulary tier typically associated with higher cost-sharing than the reference product, the estimated average cost-sharing that a beneficiary would have paid for a 30-day supply of each of the biosimilar biological products described in item (aa), had the plan provided coverage for such products on the same formulary tier as the reference product.

“(dd) A written justification for providing more favorable coverage of the reference product than the biosimilar biological product described in item (aa).

“(ee) The number of currently marketed biosimilar biological products licensed under section 351(k) of the Public Health Service Act, pursuant to an application that refers to such reference product.

“(V) Total gross spending on covered part D drugs by the plan, not net of rebates, fees, discounts, or other direct or indirect remuneration.

“(VI) The total amount retained by the pharmacy benefit manager or an affiliate of such pharmacy benefit manager in revenue related to utilization of covered part D drugs under that plan, inclusive of bona fide service fees.

“(VII) The total spending on covered part D drugs net of rebates, fees, discounts, or other direct and indirect remuneration by the plan.

“(VIII) An explanation of any benefit design parameters under such plan that encourage plan enrollees to fill prescriptions at pharmacies that are an affiliate of such pharmacy benefit manager, such as mail and specialty home delivery programs, and retail and mail auto-refill programs.

“(IX) The following information:

“(aa) A list of all brokers, consultants, advisors, and auditors that receive compensation from the pharmacy benefit manager or an affiliate of such pharmacy benefit manager for referrals, consulting, auditing, or other services offered to PDP sponsors related to pharmacy benefit management services.

“(bb) The amount of compensation provided by such pharmacy benefit manager or affiliate to each such broker, consultant, advisor, and auditor.

“(cc) The methodology for calculating the amount of compensation provided by such pharmacy benefit manager or affiliate, for each such broker, consultant, advisor, and auditor.

“(X) A list of all affiliates of the pharmacy benefit manager.

“(XI) A summary document submitted in a standardized template developed by the Secretary that includes such information described in subclauses (I) through (X).

“(ii) Written explanation of contracts or agreements with drug manufacturers

“(I) In general—The pharmacy benefit manager shall, not later than 30 days after the finalization of any contract or agreement between such pharmacy benefit manager or an affiliate of such pharmacy benefit manager and a drug manufacturer (or subsidiary, agent, or entity affiliated with such drug manufacturer) that makes rebates, discounts, payments, or other financial incentives related to one or more covered part D drugs or other prescription drugs, as applicable, of the manufacturer directly or indirectly contingent upon coverage, formulary placement, or utilization management conditions on any other covered part D drugs or other prescription drugs, as applicable, submit to the PDP sponsor a written explanation of such contract or agreement.

“(II) Requirements—A written explanation under subclause (I) shall—

“(aa) include the manufacturer subject to the contract or agreement, all covered part D drugs and other prescription drugs, as applicable, subject to the contract or agreement and the manufacturers of such drugs, and a high-level description of the terms of such contract or agreement and how such terms apply to such drugs; and

“(bb) be certified by the Chief Executive Officer, Chief Financial Officer, or General Counsel of such pharmacy benefit manager, or affiliate of such pharmacy benefit manager, as applicable, or an individual delegated with the authority to sign on behalf of one of these officers, who reports directly to the officer.

“(III) Definition of other prescription drugs—For purposes of this clause, the term other prescription drugs means prescription drugs covered as supplemental benefits under this part or prescription drugs paid outside of this part.

“(D) Audit rights

“(i) In general—Not less than once a year, at the request of the PDP sponsor, the pharmacy benefit manager shall allow for an audit of the pharmacy benefit manager to ensure compliance with all terms and conditions under the written agreement described in this paragraph and the accuracy of information reported under subparagraph (C).

“(ii) Auditor—The PDP sponsor shall have the right to select an auditor. The pharmacy benefit manager shall not impose any limitations on the selection of such auditor.

“(iii) Provision of information—The pharmacy benefit manager shall make available to such auditor all records, data, contracts, and other information necessary to confirm the accuracy of information provided under subparagraph (C), subject to reasonable restrictions on how such information must be reported to prevent redisclosure of such information.

“(iv) Timing—The pharmacy benefit manager must provide information under clause (iii) and other information, data, and records relevant to the audit to such auditor within 6 months of the initiation of the audit and respond to requests for additional information from such auditor within 30 days after the request for additional information.

“(v) Information from affiliates—The pharmacy benefit manager shall be responsible for providing to such auditor information required to be reported under subparagraph (C) or under clause (iii) of this subparagraph that is owned or held by an affiliate of such pharmacy benefit manager.

“(2) Enforcement

“(A) In general—Each PDP sponsor shall—

“(i) disgorge to the Secretary any amounts disgorged to the PDP sponsor by a pharmacy benefit manager under paragraph (1)(A)(v);

“(ii) require, in a written agreement with any pharmacy benefit manager acting on behalf of such sponsor or affiliate of such pharmacy benefit manager, that such pharmacy benefit manager or affiliate reimburse the PDP sponsor for any civil money penalty imposed on the PDP sponsor as a result of the failure of the pharmacy benefit manager or affiliate to meet the requirements of paragraph (1) that are applicable to the pharmacy benefit manager or affiliate under the agreement; and

“(iii) require, in a written agreement with any such pharmacy benefit manager acting on behalf of such sponsor or affiliate of such pharmacy benefit manager, that such pharmacy benefit manager or affiliate be subject to punitive remedies for breach of contract for failure to comply with the requirements applicable under paragraph (1).

“(B) Reporting of alleged violations—The Secretary shall make available and maintain a mechanism for manufacturers, PDP sponsors, pharmacies, and other entities that have contractual relationships with pharmacy benefit managers or affiliates of such pharmacy benefit managers to report, on a confidential basis, alleged violations of paragraph (1)(A) or subparagraph (C).

“(C) Anti-retaliation and anti-coercion—Consistent with applicable Federal or State law, a PDP sponsor shall not—

“(i) retaliate against an individual or entity for reporting an alleged violation under subparagraph (B); or

“(ii) coerce, intimidate, threaten, or interfere with the ability of an individual or entity to report any such alleged violations.

“(3) Certification of compliance

“(A) In general—Each PDP sponsor shall furnish to the Secretary (at a time and in a manner specified by the Secretary) an annual certification of compliance with this subsection, as well as such information as the Secretary determines necessary to carry out this subsection.

changed “(B) Implementation—Notwithstanding any other provision of law, the Implementation—The Secretary may implement this paragraph by program instruction or otherwise.

“(4) Rule of construction—Nothing in this subsection shall be construed as—

“(A) prohibiting flat dispensing fees or reimbursement or payment for ingredient costs (including customary, industry-standard discounts directly related to drug acquisition that are retained by pharmacies or wholesalers) to entities that acquire or dispense prescription drugs; or

“(B) modifying regulatory requirements or sub-regulatory program instruction or guidance related to pharmacy payment, reimbursement, or dispensing fees.

“(5) Standard formats

“(A) In general—Not later than June 1, 2027, the Secretary shall specify standard, machine-readable formats for pharmacy benefit managers to submit annual reports required under paragraph (1)(C)(i).

changed “(B) Implementation—Notwithstanding any other provision of law, the Implementation—The Secretary may implement this paragraph by program instruction or otherwise.

“(6) Confidentiality

“(A) In general—Information disclosed by a pharmacy benefit manager, an affiliate of a pharmacy benefit manager, a PDP sponsor, or a pharmacy under this subsection that is not otherwise publicly available or available for purchase shall not be disclosed by the Secretary or a PDP sponsor receiving the information, except that the Secretary may disclose the information for the following purposes:

“(i) As the Secretary determines necessary to carry out this part.

“(ii) To permit the Comptroller General to review the information provided.

changed “(iii) To permit the Executive Director of the Congressional Budget Office Medicare Payment Advisory Commission to review the information provided.

changed “(iv) To permit the Executive Director of the Medicare Payment Advisory Commission to review Attorney General for the information provided.purposes of conducting oversight and enforcement under this title.

changed “(v) To the Attorney Inspector General for of the purposes Department of conducting oversight Health and enforcement Human Services in accordance with its authorities under this title.the Inspector General Act of 1978 (section 406 of title 5, United States Code), and other applicable statutes.

changed “(vi) To the Inspector General “(B) Restriction on use of information—The Secretary, the Department of Health Comptroller General, and Human Services in accordance with its authorities under the Inspector General Act of 1978 (section 406 Executive Director of title 5, United States Code), and other applicable statutes.the Medicare Payment Advisory Commission shall not report on or disclose information disclosed pursuant to subparagraph (A) to the public in a manner that would identify—

removed “(B) Restriction on use of information—The Secretary, the Comptroller General, the Director of the Congressional Budget Office, and the Executive Director of the Medicare Payment Advisory Commission shall not report on or disclose information disclosed pursuant to subparagraph (A) to the public in a manner that would identify—

“(i) a specific pharmacy benefit manager, affiliate, pharmacy, manufacturer, wholesaler, PDP sponsor, or plan; or

“(ii) contract prices, rebates, discounts, or other remuneration for specific drugs in a manner that may allow the identification of specific contracting parties or of such specific drugs.

“(7) Definitions—For purposes of this subsection:

“(A) Affiliate—The term affiliate means, with respect to any pharmacy benefit manager or PDP sponsor, any entity that, directly or indirectly—

“(i) owns or is owned by, controls or is controlled by, or is otherwise related in any ownership structure to such pharmacy benefit manager or PDP sponsor; or

“(ii) acts as a contractor, principal, or agent to such pharmacy benefit manager or PDP sponsor, insofar as such contractor, principal, or agent performs any of the functions described under subparagraph (C).

“(B) Bona fide service fee—The term bona fide service fee means a fee that is reflective of the fair market value (as specified by the Secretary, through notice and comment rulemaking) for a bona fide, itemized service actually performed on behalf of an entity, that the entity would otherwise perform (or contract for) in the absence of the service arrangement and that is not passed on in whole or in part to a client or customer, whether or not the entity takes title to the drug. Such fee must be a flat dollar amount and shall not be directly or indirectly based on, or contingent upon—

“(i) drug price, such as wholesale acquisition cost or drug benchmark price (such as average wholesale price);

“(ii) the amount of discounts, rebates, fees, or other direct or indirect remuneration with respect to covered part D drugs dispensed to enrollees in a prescription drug plan, except as permitted pursuant to paragraph (1)(A)(ii);

“(iii) coverage or formulary placement decisions or the volume or value of any referrals or business generated between the parties to the arrangement; or

“(iv) any other amounts or methodologies prohibited by the Secretary.

“(C) Pharmacy benefit manager—The term pharmacy benefit manager means any person or entity that, either directly or through an intermediary, acts as a price negotiator or group purchaser on behalf of a PDP sponsor or prescription drug plan, or manages the prescription drug benefits provided by such sponsor or plan, including the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the adjudication of appeals or grievances related to the prescription drug benefit, contracting with network pharmacies, controlling the cost of covered part D drugs, or the provision of related services. Such term includes any person or entity that carries out one or more of the activities described in the preceding sentence, irrespective of whether such person or entity calls itself a “pharmacy benefit manager”.”

“(F) Requirements relating to pharmacy benefit managers—For plan years beginning on or after January 1, 2028, section 1860D–12(h).”

removed In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency, for fiscal year 2025, out of any money in the Treasury, not otherwise appropriated, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities, of which—

Section 217(h)(3)(B) of the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) is amended—

“(III) not less than $13.”

changed “(I) In general—Notwithstanding any other provision of law, of general—Of the amounts collected under clause (i)(I) during a fiscal year, not more than $20,000,000”

“(iv) Subsequent adjustment—Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of—

“(I) the amount imposed under this subsection for the prior fiscal year; and

“(II) the amount referred to in subclause (I), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.”

Section 286 of the Immigration and Nationality Act (8 U.S.C. 1356) is amended—

“(1) In general—In addition to any other fee”

“(2) Initial amount—For purposes of this section, the amount specified in this section for fiscal year 2025 shall be not less than $10.

“(3) Subsequent adjustment—Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—

“(A) the amount imposed under this subsection for the prior fiscal year; and

“(B) rounded to the next lowest multiple of $0.25, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.

changed “(4) Crediting of amounts—Of amounts collected under this subsection $1 per individual for immigration inspection or preinspection as described in this subsection shall be credited as offsetting receipts and deposited in the general fund of the Treasury.

“(5) No waiver—A fee imposed under this subsection shall not be waived or reduced.”