Patty Murray

Carried Interest Fairness Act of 2025

This bill taxes income from carried interest at ordinary income tax rates and makes other changes related to carried interest. (Some exceptions apply.)

As background, a general partner in a private equity firm or hedge fund (typically structured as a partnership) generally receives a share of the profits from the assets managed by the general partner (known as carried interest). Under current law, carried interest is characterized (for federal tax purposes) as an interest in a partnership’s capital and, thus, taxed at capital gains tax rates (which may be lower than the applicable ordinary income tax rates).

Under the bill, net capital gain and loss attributable to carried interest is recharacterized as ordinary income and loss and, thus, taxed at ordinary income tax rates. (Some exceptions apply.)

The bill also treats as ordinary the money (or fair market value of property) received by a partner in a sale or exchange of carried interest. (Thus, the bill extends what is known as the hot asset rule to include carried interest.)

Further, the bill deems distributions of carried interest by a partnership in exchange for interest in other partnership property a sale or exchange of such property and, thus, requires the partner to recognize ordinary gain on the distributed carried interest.

Finally, the bill imposes self-employment taxes on carried interest income.

National Origin-Based Antidiscrimination for Nonimmigrants Act or the NO BAN Act

This bill imposes limitations on the President's authority to suspend or restrict aliens from entering the United States. It also prohibits religious discrimination in various immigration-related decisions, such as whether to issue an immigrant or nonimmigrant visa, unless there is a statutory basis for such discrimination.

The President may temporarily restrict the entry of any aliens or class of aliens after the Department of State determines that the restriction would address specific and credible facts that threaten U.S. interests such as public safety.

The bill also imposes limitations on such restrictions, such as requiring the President, State Department, and the Department of Homeland Security (DHS) to (1) only issue a restriction when required to address a compelling government interest, and (2) narrowly tailor the suspension to use the least restrictive means to achieve such an interest.

Before imposing a restriction, the State Department and DHS shall consult with Congress. The State Department and DHS shall report to Congress about the restriction within 48 hours of the restriction's imposition. If such a report is not made, the restriction shall immediately terminate.

Individuals or entities present in the United States and unlawfully harmed by such a restriction may sue in federal court.

The bill transfers the authority to suspend the entry of aliens traveling to the United States on a commercial airline that failed to comply with regulations related to detecting fraudulent travel documents from the Department of Justice to DHS.

Access to Counsel Act of 2025

This bill provides various protections for covered individuals subject to secondary or deferred inspections when seeking admission into the United States. Covered individuals include U.S. nationals, lawful permanent residents, non-U.S. nationals (aliens under federal law) in possession of a visa, returning asylees, and refugees.

The Department of Homeland Security must ensure that a covered individual subject to secondary or deferred inspection has a meaningful opportunity to consult with counsel and certain related parties, such as a relative, within an hour of the start of the secondary inspection and as necessary during the inspection process. The counsel and related party must be allowed to advocate on behalf of the covered individual, including by providing evidence and information to the examining immigration officer.

A lawful permanent resident subject to secondary or deferred inspection may not abandon lawful permanent resident status until the individual has had a meaningful opportunity to seek advice from counsel, unless the individual voluntarily and knowingly waives in writing this opportunity to seek counsel's advice.

This resolution affirms the centrality of the U.S. Agency for International Development for advancing the national security interests of the United States, including by promoting global stability and mitigating threats abroad before they reach the United States.

Secure Rural Schools Reauthorization Act of 2025

This act extends and modifies the Secure Rural Schools (SRS) program, under which states and counties containing certain federal land may receive payments from the Forest Service or the Bureau of Land Management (BLM) for schools, roads, and certain other municipal services.

The act modifies the SRS program, including by

• extending payments made to states and counties containing federal land through FY2026,

• providing lapsed payments for FY2024 and FY2025,

• extending the authority of counties to initiate projects using such funds through FY2028, and

• extending the authority to initiate projects proposed by resource advisory committees through FY2028.

This resolution designates January 30, 2025, as Fred Korematsu Day of Civil Liberties and the Constitution.

It also encourages all people to reflect on the importance of political leadership and vigilance and on the values of justice and civil rights during times of uncertainty and emergency.

Fred Korematsu Congressional Gold Medal Act of 2025

This bill provides for the award of a Congressional Gold Medal posthumously to Fred Korematsu in recognition of his contributions to civil rights, his loyalty and patriotism to the United States, and his dedication to justice and equality.

This resolution supports the designation of January as Muslim-American Heritage Month and honors the contributions and integral role of Muslim Americans in the economy, culture, and identity of the United States.

She Develops Regulations In Vehicle Equality and Safety Act or the She DRIVES Act

This bill directs the Department of Transportation (DOT) to revise motor vehicle safety standards to require the use of certain anthropomorphic test devices (i.e., crash test dummies) and testing on female crash test dummies.

Specifically, DOT must issue final rules to revise the current testing regulations to include specific adult male and adult female frontal impact and side impact crash test dummies.

The final rules must establish or update the testing injury criteria based on real-world injuries and the greatest potential to increase safety. The injury criteria must include head, neck, chest, abdomen, pelvis, upper leg, and lower leg criteria for the crash test dummies.

The final rules must also establish crashworthiness frontal and side impact tests for adult female occupants in all front seating positions that are currently tested for adult male occupants (as of the date of the bill's enactment).

Further, DOT must promulgate a final decision notice to update the testing procedures for the New Car Assessment Program of the National Highway Traffic Safety Administration to require the use of these crash test dummies for frontal and side impact crashworthiness testing.

Finally, DOT must submit reports to Congress that, among other things, identify timelines for DOT to incorporate additional types of crash test dummies into the regulations and identify testing devices used in other countries for similar crashworthiness standards.

Saving the Civil Service Act

This bill generally prohibits changes to the classification of positions in the competitive service and excepted service unless certain conditions are met. (Competitive service positions are subject to competitive examination while excepted service positions are appointed under one of five schedules. Competitive service positions have notice and appeal requirements for adverse actions that are not applicable to most excepted positions, including those of a confidential, policy-determining, policy-making, or policy-advocating character under Schedule C.)

On October 21, 2020, President Donald Trump issued an executive order that placed executive agency positions that are of a confidential, policy-determining, policy-making, or policy-advocating character, and that are not normally subject to change as a result of a presidential transition, under a new Schedule F in the excepted service. The order was subsequently revoked by President Joe Biden.

The bill prohibits executive agency positions in the competitive service from being placed in the excepted service, unless such positions are placed in a schedule in the excepted service as in effect on September 30, 2020. The bill also prohibits positions in the excepted service from being placed in any schedule other than the aforementioned schedules.

Additionally, agencies may not (1) transfer occupied positions from the competitive or excepted service into Schedule C without the consent of the Office of Personnel Management, or (2) transfer employees in the excepted service to another schedule or transfer employees in the competitive service to the excepted service without employee consent.

This resolution (1) mourns the passing of former President Jimmy Carter and extends sympathy to his family; and (2) honors his life, legacy, and contributions to the United States.

Washington, D.C. Admission Act

This bill provides for the establishment of the State of Washington, Douglass Commonwealth, and its admission into the United States.

The state is composed of most of the territory of the District of Columbia (DC), excluding a specified area that encompasses the U.S. Capitol, the White House, the U.S. Supreme Court building, federal monuments, and federal office buildings adjacent to the National Mall and the U.S. Capitol. The excluded territory shall be known as the Capital and serve as the seat of the government of the United States, as provided for in Article I of the Constitution. The state may not impose taxes on federal property except as Congress permits.

The bill provides for the DC Mayor to issue a proclamation for the first elections to Congress of two Senators and one Representative of the state. The bill eliminates the office of Delegate to the House of Representatives.

The bill applies current DC laws to the state. DC judicial proceedings and contractual obligations shall continue under the state’s authority. The bill also provides for specified federal obligations to transfer to the state upon its certification that it has funds and laws in place to assume the obligations. These include maintaining a retirement fund for judges and operating public defender services.

The bill establishes a commission that is generally comprised of members who are appointed by DC and federal government officials to advise on an orderly transition to statehood.

Health Care Affordability Act of 2025

This bill makes permanent temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.

Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.

Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.

The bill makes permanent the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.

Commission to Study and Develop Reparation Proposals for African Americans Act

This bill establishes the Commission to Study and Develop Reparation Proposals for African Americans.

The commission must (1) compile documentary evidence of slavery in the United States; (2) study the role of the federal and state governments in supporting the institution of slavery; (3) analyze discriminatory laws and policies against formerly enslaved Africans and their descendants; and (4) recommend ways the United States may recognize and remedy the effects of slavery and discrimination on African Americans, including through a formal apology and compensation (i.e., reparations).

The commission consists of individuals from civil society and reparations organizations and individuals appointed by the President and congressional leadership. The commission may hold hearings, subpoena witnesses and records, and contract with other entities to conduct its work.

The commission must submit its final report within one year of its first meeting.

Sunshine Protection Act of 2025

This bill makes daylight saving time the new, permanent standard time.

States with areas exempt from daylight saving time may choose the standard time for those areas.