Large oil, gas, and coal companies face $1 trillion one-time tax under new bill
In committeeH.R. 1135Latest action
Sponsor: Jerrold Nadler · Representative · NY
AIDecoded by AI · checked against the recordRead the official text
Official title: Polluters Pay Climate Fund Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 1135 would levy a $1 trillion one-time tax on major fossil fuel companies and direct the money to climate and disaster programs.
70-second read · 5 questions answered below
What does this do?
HR 1135 would impose a one-time $1 trillion tax on large fossil fuel companies, divided among them based on how much carbon dioxide their operations and products released between 2000 and 2023. Only companies responsible for more than one billion metric tons of emissions during that period would owe the tax. Companies could pay in full by September 2026 or spread payments over nine years.
Who does it affect?
The bill targets a small number of very large oil, gas, and coal companies that have operated in the United States and exceeded the one-billion-metric-ton emissions threshold. It does not directly tax consumers or small businesses.
Why does it matter?
Revenue would flow into a new government account called the Polluters Pay Climate Fund, to be spent on disaster response, pollution relief, and environmental health programs nationwide. Paying the tax would not shield companies from separate lawsuits brought by states, local governments, or individuals over climate-related damages.
What does it cost, and who pays?
- $1 trillion total, split by emissions share
- $15B/year min to FEMA for disasters
- $6B/year min for pollution grants
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedFeb 7, 2025
- House committeeYou are here · Feb 7, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.