The MARKET CHOICE Act establishes a federal carbon tax system beginning in 2027 that taxes greenhouse gas emissions from fossil fuel combustion, industrial processes, and certain manufactured products, starting at $40 per metric ton of CO2 equivalent and increasing annually. The bill repeals existing fuel excise taxes, creates a border carbon adjustment system to prevent companies from relocating due to higher domestic carbon costs, and directs 75% of carbon tax revenues into a new RISE Trust Fund to support infrastructure projects from 2027 through 2036, with primary focus on highway improvements, weatherization, energy worker assistance, and climate resilience initiatives. The legislation also provides direct assistance to low-income households through state grant programs, establishes a National Climate Commission to set long-term emissions reduction targets, and creates a 10-year Labor Department program to help workers displaced from fossil fuel industries through retraining and relocation support. Additionally, the bill pauses EPA greenhouse gas regulations until 2039 (except for vehicles and certain industrial sources) and authorizes federal funding for state and local flood mitigation projects. The bill was introduced in May 2025 and is being reviewed by seven House committees.
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