National Resilience and Recovery Fund Act
Summary
The National Resilience and Recovery Fund Act aims to establish a dedicated fund for disaster resilience and recovery by amending the Internal Revenue Code of 1986. The fund would be financed through taxes on crude oil and natural gas, including a tax on windfall profits. These funds would then be allocated to FEMA programs focused on hazard mitigation, infrastructure resilience, and flood mitigation.
Expected Effects
The Act would create a new funding stream for disaster preparedness and recovery programs. This could lead to increased investment in resilient infrastructure and reduced vulnerability to natural disasters. It also clarifies the definition of crude oil for excise tax purposes and imposes additional taxes on the oil and gas industry.
Potential Benefits
- Increased funding for FEMA's hazard mitigation programs.
- Enhanced resilience of infrastructure against natural disasters.
- Support for communities in preparing for and recovering from disasters.
- Clarification of tax definitions related to crude oil.
- Potential reduction in long-term disaster-related costs.
Potential Disadvantages
- Increased taxes on the oil and gas industry, potentially leading to higher energy prices for consumers.
- Potential for the fund to be used for purposes other than those intended.
- Possible economic impact on oil and gas production in the Gulf of Mexico.
- The windfall profits tax could disincentivize domestic oil production.
- Administrative complexity in implementing and managing the new fund and taxes.
Constitutional Alignment
The bill's provisions for taxation and spending fall under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). The establishment of a national fund and its allocation to specific programs are within Congress's enumerated powers. The bill does not appear to infringe on any individual rights or liberties protected by the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).