WASHINGTON (May 14, 2025) — Today, Representatives Brian Fitzpatrick (R-PA) and Salud Carbajal (D-CA) introduced the MARKET CHOICE Act, a bipartisan proposal aiming to replace the federal gasoline tax with a broader carbon tax targeting CO₂ emissions from fossil fuel combustion and large industrial sources.

The bill also includes a border tax adjustment to tackle carbon intensity and competitiveness issues, joining efforts from both Republicans and Democrats to address trade and climate concerns.

The majority of revenue generated would be allocated to infrastructure investments, replenishing the Highway Trust Fund, which is currently funded by the federal gas tax. Additional funds will enhance U.S. resilience efforts, prioritizing flood mitigation; support for displaced energy workers; assistance to low-income households; and research, development and deployment for carbon removal, carbon capture and storage and advanced energy technologies.

Following is a statement from Christina DeConcini, Director of Government Affairs, World Resources Institute:

“This bipartisan bill recognizes that climate change is an urgent threat to U.S. communities and puts forward a pragmatic approach to address it. This legislation would harness market mechanisms to cut planet-warming emissions, benefiting Americans. As climate impacts intensify across the U.S., it is imperative that Congress adopt effective solutions like the Market Choice Act.

“We are particularly pleased to see the bipartisan support for climate solutions in this moment. The scientific consensus is unequivocal: urgent action is required to both slash emissions and help communities adapt. This legislation exemplifies how smart policy can improve Americans’ lives. We hope to see additional legislation from both Republicans and Democrats to address climate change.”