Senator Ed Markey introduced legislation aimed at increasing taxes on private jet fuel, framing the proposal as a way to address climate change while funding improvements in public transportation. Markey called the initiative the “FATCAT Act” in a social media post, saying, “The world is burning and billionaire fat cats are flying around in private jets. Let’s pass my FATCAT Act to make them pay. And then we’ll reinvest that money in public transportation. It’s really that simple.”
The world is burning and billionaire fat cats are flying around in private jets. Let’s pass my FATCAT Act to make them pay. And then we’ll reinvest that money in public transportation. It’s really that simple. https://t.co/si2is9G7PH
— Ed Markey (@SenMarkey) February 10, 2026
The bill, officially titled the Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025, would amend the Internal Revenue Code to impose higher excise taxes on fuel used in non-commercial aviation. The legislation was introduced in the Senate by Markey with co-sponsors including Senators Chris Murphy, Jeff Merkley, Bernie Sanders, and Elizabeth Warren. Once referred to the Senate Finance Committee, the bill would begin the process of review and potential amendments before any floor votes.
Under the proposed law, excise taxes on fuel for private jets would increase substantially. Retail excise taxes would rise to a base rate of 35.9 cents per gallon plus an additional $1.641 per gallon, with automatic inflation adjustments starting in 2027. Manufacturers’ excise taxes on aviation fuel would be adjusted in a similar manner. The legislation provides exceptions for cases deemed to have “reasonable cause,” such as fuel used for scientific research, medical emergencies, or natural disaster evacuations. These exceptions would allow the Treasury to refund or credit the additional taxes to the purchaser.
The bill also eliminates a long-standing exemption from air transportation excise taxes for certain uses, including aircraft engaged in tree-planting and related activities, unless federal aviation facilities are used. These changes are designed to ensure that higher taxes target luxury and non-essential private jet usage. All provisions of the bill are set to take effect on January 1, 2026.
Revenue generated from the increased taxes would be directed to a newly established Funding to Support Clean Communities Trust Fund. This trust fund would finance grants and activities under the Clean Air Act, with an emphasis on improving air quality monitoring and expanding public transit infrastructure, particularly in low-income and disadvantaged communities. At least 50 percent of the funds would be reserved for projects within these communities, with priority given to areas disproportionately affected by air pollution. Projects could include deploying air quality sensors, maintaining monitoring networks, and upgrading bus, rail, and other public transit systems within 20 miles of airports.
Markey’s legislation arrives at a time of heightened attention to climate change and transportation equity, highlighting the environmental impact of private aviation while linking new revenue to community-level investments. By tying the tax increase to funding for public transit and air quality improvements, the bill aims to create a direct connection between limiting carbon-intensive private travel and supporting broader societal benefits.
The FATCAT Act represents one of the more targeted climate-focused taxation proposals in Congress, focusing on luxury fuel consumption while directing proceeds to environmental and public infrastructure projects. Its introduction underscores growing interest among progressive lawmakers in using fiscal policy to simultaneously address emissions and social equity.
