Congress bets $200M annually on sustainable jet fuel—and mandates airlines use it.

What it does

This bill establishes a national goal to reduce aviation greenhouse gas emissions 35% by 2035 and reach net-zero by 2050. It creates a low-carbon aviation fuel standard requiring EPA to set benchmarks that reduce the carbon intensity of all U.S. aviation fuel by 20% by 2030 and 50% by 2050. The bill funds sustainable aviation fuel (SAF) research and development ($200M annually through 2030 for DOE grants, $35M annually for FAA research), requires the Department of Defense to purchase at least 10% SAF when cost-competitive, and extends federal tax credits for SAF production through 2032 with a phased reduction in the credit percentage.

Why we flagged it

The bill's operative mechanisms—tax credits for SAF production (Section 9–10), government procurement mandates (Section 6), and research funding (Sections 4, 7–8)—function as direct subsidies and market-protection measures for the sustainable aviation fuel industry. The low-carbon fuel standard (Section 5) is a regulatory mandate that creates compliance costs for conventional fuel producers and generates tradeable credits that benefit SAF producers. While framed as climate policy, the bill's pri

What the text implies

• The low-carbon fuel standard (Section 5) creates a credit-trading system that may allow conventional fuel producers to purchase compliance credits rather than reduce emissions, potentially limiting actual emissions reductions if credit prices remain low.
• The 10% DoD procurement mandate (Section 6) is conditional on SAF being 'competitive with the fully burdened cost of conventional jet fuel'—a definition that may be interpreted broadly to include indirect costs, potentially locking in SAF purchases even if SAF remains more expensive on a per-unit basis.
• The tax credit phaseout (Section 10) reduces the credit from 30% to 12% by 2039, but the bill does not specify what happens after 2039 or whether the credit will expire entirely, creating long-term uncertainty for SAF producers and potentially requiring future legislative action.
• The bill authorizes $200M annually for SAF production grants (Section 4) but does not specify how these funds will be allocated among competing projects, creating potential for political favoritism in grant distribution.
• The FAA research mandate (Section 7) includes studying 'non-carbon dioxide greenhouse gas emissions, water vapor, and contrails'—climate impacts that may be significant but are not addressed by the bill's carbon-intensity standard, creating a potential gap between stated climate goals and regulatory mechanisms.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens benefit from reduced aviation emissions and climate progress toward stated national goals, plus potential long-term fuel-cost stability if SAF becomes cost-competitive. However, the bill's primary mechanisms—tax credits, government procurement mandates, and a carbon-intensity standard—directly subsidize and protect a nascent SAF industry, shifting compliance costs to conventional fuel producers and potentially raising aviation fuel prices in the near term if SAF remains more expensive t

Who stands to gain

• sustainable aviation fuel producers and refiners
• renewable fuel companies transitioning to SAF production
• aviation fuel blending and distribution companies
• equipment manufacturers for SAF production facilities
• research institutions and national laboratories (DOE/FAA funding)

Named in the bill

Environmental Protection Agency (EPA), Department of Defense, Department of Energy, Federal Aviation Administration (FAA), Department of Agriculture, International Civil Aviation Organization (ICAO), sustainable aviation fuel (SAF) industry, conventional jet fuel producers, aviation sector

Where it stands

1 cosponsor: 1 Democrats.

• Feb 26, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 26, 2025 — Referred to House Committee on Ways and Means and House Committee on Science, Space, and Technology · Congress.gov: “Referred to the Subcommittee on Aviation”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $20,000 in lobbying spend. A filing names 9 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Julia Brownley, the sponsor, reported $296,500 in PAC receipts in the 2026 cycle.

• American Association of Airport Executives — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.