Placing a price on carbon provides a market-based solution to mitigating climate change. These approaches (e.g., carbon tax, cap and trade) provide flexible and cost-effective pathways to reduce greenhouse gas emissions while driving clean energy innovation. This factsheet compares carbon pricing proposals introduced in the 119th Congress (2025–26).
Highlights
Multiple carbon pricing proposals introduced in the 119th Congress. These include five multi-sectoral policies and three sector-specific policies. These policies include carbon fees, cap-and-trade programs, performance standards, and a one-time tax assessment on historic emissions. While none has clear momentum yet, their breadth signals sustained congressional interest in market-based climate policy.
Proposals differ in core design elements. They differ on fundamental policy designs such as price levels, escalation rates, sector coverage, and treatment of imports.
Proposals allocate revenue to a range of uses. Across proposals, revenues from the carbon price are directed to a range of uses, e.g., household rebates, infrastructure, resilience, and transition assistance.
