Senator Edward J Markey has reintroduced the Fueling Alternative Transportation with a Carbon Aviation Tax (FATCAT) Act, legislation that would increase fuel taxes for private jet travel from USD22 cents to USD2 per gallon and remove existing fuel tax exemptions for logging or oil and gas exploration.
The FATCAT Act was initially introduced to the US Congress in July 2023, under the administration of former president Joe Biden, but did not advance through the legislative process. Now, Senator Markey, a Democrat representing the state of Massachusetts, reintroduced the bill on January 21, 2025, a day after current president Donald Trump took office for his second term.
Among the key provisions in the FATCAT Act of 2025 are:
- raising the excise tax on non-commercial aviation fuel, adding USD1.64 per gallon on top of existing taxes;
- adjusting the tax rate for inflation starting in 2026;
- eliminating certain exemptions from air transportation excise taxes; and
- establishing a Clean Communities Trust Fund to use the additional tax revenue for air quality monitoring, improving public transportation, and supporting infrastructure in disadvantaged communities.
“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,” said Congresswoman Nydia Velázquez.
The FATCAT Act still has to pass the Senate and the House, and be approved by the president to become law.
