The Cost-of-Living Relief Act of 2025

A Bill to Provide Immediate Economic Relief for American Families and Workers

Section 1: Short Title

This Act may be cited as the “Cost-of-Living Relief Act of 2025.”

Section 2: Purpose

To provide immediate financial relief to American families by lowering the cost of essential goods and services, stabilizing housing and energy prices, reducing healthcare expenses, and implementing targeted tax reforms to ease the economic burden on working- and middle-class Americans.

Section 3: Grocery Tax Suspension and Anti-Price Gouging Measures

(a) Temporary Suspension of Grocery Sales Tax

1. All federally regulated sales taxes on essential grocery items, including fresh produce, dairy, bread, meats, and baby formula, shall be suspended for a period of two (2) years from the enactment of this Act.

2. States shall receive federal reimbursement grants equivalent to the estimated tax revenue lost due to this

The Cost-of-Living Relief Act of 2025 provides immediate financial relief to American families by suspending grocery and gas taxes, capping rent increases, expanding homebuyer assistance, lowering healthcare costs, and cracking down on corporate price gouging. It funds these measures through a windfall profit tax on corporations and closing billionaire tax loopholes, ensuring that everyday Americans—not big businesses—benefit. This Act is a bold step to make food, housing, energy, and healthcare more affordable while holding corporations accountable.

suspension to avoid disruption to state budgets.

(b) Federal Anti-Price Gouging Enforcement

1. The Federal Trade Commission (FTC) shall monitor price increases on essential groceries to prevent corporate manipulation of consumer costs.

2. Any corporation found to have artificially inflated food prices beyond normal market adjustments shall be subject to penalties, including fines up to $10 million per violation.

Section 4: Energy and Fuel Price Relief

(a) Suspension of the Federal Gasoline Tax

1. The federal gas tax of 18.4 cents per gallon shall be suspended for a period of one (1) year from the enactment of this Act.

2. Gas stations shall be required to pass the full tax relief to consumers at the pump, with federal oversight ensuring compliance.

(b) Energy Price Relief Fund

1. A $10 billion emergency energy relief fund shall be allocated to provide direct rebates for low- and middle-income households struggling with rising heating and electricity costs.

2. Eligibility criteria shall be based on household income and energy expenditures, ensuring relief reaches those most in need.

Section 5: Rent Stabilization and Homeownership Assistance

(a) Temporary Rent Cap in High-Inflation Areas

1. Landlords in metropolitan areas where rent has increased by more than 15% over the past two years shall be prohibited from raising rents by more than 5% annually for two (2) years following enactment of this Act.

2. Small landlords (owning 5 or fewer rental units) are exempt to prevent undue hardship on small property owners.

(b) Expansion of Down Payment Assistance for First-Time Homebuyers

1. The Department of Housing and Urban Development (HUD) shall allocate $25 billion to expand federal down payment assistance programs.

2. Eligible first-time homebuyers earning less than 150% of the median area income may receive a one-time grant of up to $15,000 toward their down payment.

Section 6: Healthcare Cost Reduction Measures

(a) Prescription Drug Price Caps

1. Medicare shall be authorized to negotiate drug prices with pharmaceutical companies for all essential medications instead of a limited list.

2. The total out-of-pocket cost for life-saving prescription drugs shall be capped at $50 per month per patient for all Medicare beneficiaries.

(b) Cap on Out-of-Pocket Medical Expenses

1. Private health insurers shall be required to cap co-pays for primary care and urgent care visits at $25 per visit for all policyholders.

2. A federal Health Expense Relief Fund shall provide subsidies to cover these costs for individuals and families earning below 200% of the federal poverty level.

Section 7: Funding Provisions

(a) Windfall Profit Tax on Corporate Price Gouging

1. Corporations that have raised prices on essential consumer goods (food, fuel, medicine, and housing) by more than 20% over the past 24 months while posting record profits shall be subject to a 15% windfall profit tax.

2. Revenues collected from this tax shall be allocated to fund sections 4(b), 5(b), and 6(b) of this Act.

(b) Closing Billionaire Tax Loopholes

1. The carried interest loophole, which allows hedge fund managers and private equity firms to pay lower capital gains tax rates instead of income tax, shall be closed immediately.

2. Tax shelters used by multinational corporations to avoid U.S. taxation shall be subject to a minimum 21% corporate tax rate, generating additional revenue for economic relief programs.

Section 8: Implementation and Enforcement

1. The Department of the Treasury shall oversee the collection and redistribution of revenues under this Act.

2. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) shall enforce penalties for corporate noncompliance, including violations of price gouging laws and tax evasion schemes.

3. The provisions of this Act shall take effect immediately upon enactment, with full implementation within 90 days.

Section 9: Sunset and Review Clause

1. The provisions of Sections 3, 4, and 5 shall be subject to review two (2) years after enactment.

2. The Department of Commerce shall submit a report to Congress assessing the economic impact of this Act and recommending any necessary adjustments.

Conclusion

The Cost-of-Living Relief Act of 2025 is a bold, immediate solution to help working Americans afford food, housing, healthcare, and energy while holding corporations accountable for excessive profiteering. This Act prioritizes relief for everyday families over corporate greed and ensures that the American Dream remains within reach for all.

Congress must act NOW to pass this legislation and deliver real economic relief to millions of Americans.