U.S. Senator Markey Reintroduces FATCAT Act on Jet Fuel Tax
Senator Edward J. Markey has reintroduced the Fueling Alternative Transportation with a Carbon Aviation Tax (FATCAT) Act, a bold legislative initiative that aims to overhaul the current tax framework for private jet fuel in the United States. The proposed bill would raise the fuel tax for private jet travel from 22 cents to USD2 per gallon, while also eliminating the existing fuel tax exemptions granted to logging and oil and gas exploration activities.
Initially introduced in July 2023 during former President Joe Biden’s administration, the FATCAT Act did not advance through Congress. However, the bill has now been reintroduced on January 21, 2025, by Senator Markey, a Democrat representing Massachusetts, just one day after President Donald Trump began his second term. The timing of the reintroduction suggests a renewed legislative push to address environmental and economic concerns tied to private aviation.
Among the key provisions outlined in the FATCAT Act of 2025 is a significant increase in the excise tax on non-commercial aviation fuel. Specifically, the legislation proposes adding USD1.64 per gallon on top of the current taxes. In addition, the Act includes a mechanism to adjust the tax rate for inflation starting in 2026, ensuring that the tax burden remains relevant over time. By eliminating certain exemptions from air transportation excise taxes, the bill aims to level the playing field between private jet travelers and commercial airline passengers.
The bill also proposes the establishment of a Clean Communities Trust Fund, which would be funded by the additional tax revenue. This fund is intended to support several initiatives, including air quality monitoring, improvements in public transportation, and the development of infrastructure in disadvantaged communities. Congresswoman Nydia Velázquez has voiced strong support for the proposal, stating, “If billionaires want to travel on private jets, they should pay similar taxes to those flying commercial. The FATCAT Act makes the ultra-wealthy pay their fair share so that we can fund environmental justice and affordable public transit for all.”
Supporters of the bill argue that the current exemptions and low tax rates contribute to environmental degradation and an inequitable transportation system. They maintain that by increasing fuel taxes for private aviation, the government can generate much-needed revenue to fund initiatives that benefit broader communities while also discouraging the excessive carbon footprint associated with private jet travel. Critics, however, contend that such measures might disproportionately affect the aviation industry and could potentially lead to unintended consequences for luxury travel and the broader economy.
The FATCAT Act still faces a challenging path through both the Senate and the House, where it must garner sufficient support and be signed into law by the president. Its fate will depend on how lawmakers balance the environmental objectives with the economic realities of private aviation. As debates continue, the proposal remains a focal point of discussions on environmental policy, taxation fairness, and the need to address climate change.
In summary, the reintroduction of the FATCAT Act represents a significant push by Senator Markey to reform how private jet fuel is taxed in the United States. With its ambitious provisions aimed at raising revenue for environmental and public infrastructure projects, the bill is set to become a major talking point in the ongoing debate over sustainable transportation and environmental justice.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com