H.R. 10934

American Minerals Royalty and Investment Act of 2026

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I

119th CONGRESS

2d Session

H. R. 10934

IN THE HOUSE OF REPRESENTATIVES

October 29, 2026

Ms. Leger Fernandez (for herself, Ms. Castor of Florida, Ms. Crockett, Ms. Garcia of Texas, Mr. Huffman, Ms. Norton, and Ms. Stansbury) introduced the following bill; which was referred to the Committee on Natural Resources

A BILL

To modify the requirements applicable to certain locatable minerals, and for other purposes.

1.

Short title

This Act may be cited as the American Minerals Royalty and Investment Act of 2026.

2.

Locatable mineral royalty

(a)

In general

Except as provided in subsection (b), the gross income from the sale or removal of locatable minerals produced pursuant to a covered mining claim shall be subject to a royalty at a rate that—

(1)

subject to paragraphs (2) and (3), the Secretary shall establish by regulation;

(2)

except as provided in paragraph (3)(B), shall be not less than 7 percent and not more than 10 percent of such gross income; and

(3)

may—

(A)

vary based on the locatable mineral so produced; and

(B)

not be reduced under subsection (c)—

(i)

by more than 2 percent of such gross income for each criterion described in paragraph (1) of that subsection that is met; or

(ii)

to less than 6 percent of such gross income.

(b)

Delayed royalty effective date for certain gross income

If the production of a locatable mineral described in subsection (a) is carried out pursuant to a plan of operations or operations permit that was approved or issued, respectively, before the date of the enactment of this Act, the gross income from the sale or removal of such a locatable mineral—

(1)

during the period beginning on the date of the enactment of this Act and ending on the day before the date that is 5 years after the date of the enactment of this Act, is not subject to a royalty under subsection (a);

(2)

during the period beginning on the date that is 5 years after the date of the enactment of this Act and ending on the day before the date that is 10 years after the date of the enactment of this Act, shall be subject to a royalty in accordance with subsection (a) except that such royalty shall be applied as if the rate of the royalty is 50 percent of the rate established by the Secretary under that subsection; and

(3)

beginning on the date that is 10 years after the date of the enactment of this Act, shall be subject to a royalty in accordance with subsection (a).

(c)

Royalty relief

(1)

In general

Upon the receipt of an application from the operator or claim holder of a covered mining claim, the Secretary may reduce the rate of a royalty established pursuant to subsection (a) for the gross income from the sale or removal of locatable minerals produced pursuant to the covered mining claim—

(A)

if the operator and claim holder of the covered mining claim is a domestic person; and

(B)

all of the locatable minerals produced pursuant to the covered mining claim are—

(i)

exported to a country that is not a covered nation;

(ii)

processed or otherwise used domestically; or

(iii)

a combination thereof.

(2)

Effective date

If under paragraph (1) the Secretary reduces the rate of a royalty described in that paragraph, such reduced rate shall take effect on the date that is 60 days after the date on which the Secretary—

(A)

publishes public notice of such reduced rate; and

(B)

submits to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate notice and a statement of the reasons for granting such reduced rate.

(3)

Layering of royalty reductions

Subject to subsection (a)(3)(B), the Secretary may reduce the rate of a royalty described in paragraph (1) for each criterion described in that paragraph that is met.

(d)

Deposit

Amounts received by the United States as royalties pursuant to this section shall be deposited into the Fund.

3.

Hardrock Mineral Reinvestment Fund

(a)

Establishment

There is established in the Treasury of the United States a separate account, to be known as the Hardrock Mineral Reinvestment Fund.

(b)

Administration

(1)

In general

The Fund shall consist of amounts deposited under section 2(d).

(2)

Availability of amounts

Amounts described in paragraph (1) shall be available to the Secretary for allocation in accordance with paragraph (3) without further appropriation and until expended.

(3)

Allocation of amounts

The Secretary shall allocate amounts described in paragraph (1) in accordance with the following:

(A)

For the 20-year period beginning on the date of the enactment of this Act—

(i)

25 percent to the States within the boundaries of which the amounts were derived, based on the proportion of such amounts derived from each such State;

(ii)

25 percent to Indian Tribes in accordance with a formula developed by the Secretary in consultation with Indian Tribes;

(iii)

not less than 25 percent to the program established under section 40704(a) of the Infrastructure Investment and Jobs Act (30 U.S.C. 1245(a)); and

(iv)

not more than 25 percent to the program established by the Secretary under section 4.

(B)

Beginning on the day after the date on which the period described in subparagraph (A) ends—

(i)

25 percent to the States within the boundaries of which the amounts were derived, based on the proportion of such amounts derived from each such State;

(ii)

25 percent to Indian Tribes in accordance with a formula developed by the Secretary in consultation with Indian Tribes; and

(iii)

50 percent to the program established under section 40704(a) of the Infrastructure Investment and Jobs Act (30 U.S.C. 1245(a)).

(c)

Authorized uses

(1)

In general

Subject to paragraph (2) and in accordance with all applicable Federal and State laws, each State that receives amounts pursuant to subsection (b) shall use at least 50 percent of such amounts only for 1 or more of the following purposes:

(A)

Mitigation of damage to wildlife, natural resources, or cultural resources related to mining activities.

(B)

Implementation of a federally approved comprehensive conservation management plan.

(C)

Planning assistance and the administrative costs of complying with this section.

(2)

Limitation

A State that receives amounts pursuant to subsection (b) may not use more than 3 percent of such amounts for the purpose described in paragraph (1)(C).

4.

Financial assistance program

(a)

Financial assistance program

(1)

In general

The Secretary shall establish a program that, in accordance with the requirements of this section, provides Federal financial assistance to covered entities to incentivize investment in facilities and equipment located in the United States for the processing of critical minerals.

(2)

Procedure

(A)

In general

A covered entity shall submit to the Secretary an application that describes the project for which the covered entity is seeking Federal financial assistance under the program established under paragraph (1).

(B)

Eligibility

To qualify for Federal financial assistance under the program established under paragraph (1), a covered entity shall demonstrate to the Secretary, in the application submitted by the covered entity under subparagraph (A), that—

(i)

the covered entity has—

(I)

a documented interest in constructing, expanding, or modernizing a facility or equipment described in paragraph (1); and

(II)

the ability to substantially finance, construct, expand, or modernize a facility or equipment described in paragraph (1); and

(ii)

with respect to the project described in subparagraph (A), the covered entity has—

(I)

made commitments to worker and community investment, including through—

(aa)

training and education benefits paid by the covered entity; and

(bb)

programs to expand employment opportunities for economically disadvantaged individuals;

(II)

secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals;

(III)

the ability to obtain a bond, surety, or other financial assurance (other than Federal financial assistance under this subsection) sufficient to restore any lands and waters the Secretary determines may be adversely affected by activities carried out pursuant to the project;

(IV)

the ability to sustain the facility or equipment described in paragraph (1) that is the subject of the project without being provided additional Federal financial assistance under this subsection for facility support; and

(V)

assessed potential effects on the environment, including groundwater, surface water, air quality, wildlife, and cultural resources, and committed to avoiding, minimizing, and mitigating negative effects by—

(aa)

committing to undertake all practical measures to avoid and minimize such effects;

(bb)

developing, in coordination with affected Indian Tribes and communities, a mitigation plan for unavoidable negative effects to offset such effects or achieve, where possible, a net environmental benefit; and

(cc)

committing to establishing, in coordination with affected Indian Tribes and communities, a monitoring program to ensure the effectiveness of the mitigation plan described in item (bb).

(C)

Considerations for review

With respect to the review by the Secretary of an application submitted by a covered entity under subparagraph (A)—

(i)

the Secretary may not approve the application unless the Secretary—

(I)

determines the covered entity is not a foreign entity of concern or a subsidiary of a foreign entity of concern;

(II)

confirms that the covered entity has satisfied the eligibility criteria under subparagraph (B);

(III)

determines that the project for which the application was submitted is in the interest of the United States; and

(IV)

if the Secretary intends to provide to the covered entity Federal financial assistance in excess of $10,000,000, not later than 15 days before the date on which the Secretary approves such application, notifies the appropriate committees of Congress; and

(ii)

the Secretary may consider whether—

(I)

the covered entity has previously received Federal financial assistance under the program established under paragraph (1); and

(II)

when practicable, a covered entity is or includes a small business.

(D)

Records

(i)

In general

The Secretary may request records and information from a covered entity that submits an application under subparagraph (A) to review the status of a covered entity.

(ii)

Requirement

If the Secretary requests records or information from a covered entity under clause (i), the covered entity shall provide to the Secretary such records or information.

(3)

Amount

(A)

In general

The Secretary shall determine the appropriate amount and funding type for Federal financial assistance provided to a covered entity under this the program established under paragraph (1).

(B)

Larger investment

The Secretary may not provide more than $50,000,000 of Federal financial assistance to a covered entity for a single project for which the covered entity submits an application under paragraph (2).

(4)

Use of funds

A covered entity that receives Federal financial assistance under the program established under paragraph (1) may only use the Federal financial assistance to—

(A)

construct, expand, or modernize a facility or equipment described in paragraph (1), as documented in the application submitted by the covered entity under paragraph (2);

(B)

support workforce development for a facility described in paragraph (1);

(C)

support site development or modernization for such a facility, including implementing measures to reduce or mitigate the negative environmental effects of such a facility; and

(D)

pay costs the Secretary determines reasonable related to the operating expenses for a facility or equipment described in paragraph (1), including operating expenses related to—

(i)

specialized workforce;

(ii)

essential materials; and

(iii)

complex equipment maintenance.

(5)

NEPA, ESA, and NHPA compliance

(A)

NEPA

(i)

In general

Notwithstanding section 111(10)(B) of the National Environmental Policy Act of 1969 (42 U.S.C. 4336e(10)(B)), Federal financial assistance provided to a covered entity under the program established under paragraph (1) constitutes a major Federal action subject to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(ii)

Public comment

Before completing an environmental assessment or environmental impact statement with respect to providing Federal financial assistance under such program, the Secretary shall provide an opportunity for public comment on a draft version of the environmental assessment or environmental impact statement.

(B)

ESA

The provision of Federal financial assistance to a covered entity under the program established under paragraph (1) is an agency action for purposes of section 7(a)(2) of the Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)).

(C)

NHPA

The provision of Federal financial assistance to a covered entity under the program established under paragraph (1) is considered an undertaking for purposes of division A of subtitle III of title 54, United States Code (formerly known as the National Historic Preservation Act).

(6)

Tribal consultation

(A)

In general

If a project for which a covered entity is seeking Federal financial assistance under the program established under paragraph (1) may have a direct, indirect, or cumulative effect on any item described in subparagraph (B), the Secretary shall conduct timely and meaningful consultation with each Indian Tribe affected by such project in accordance with the procedures of the Presidential Memorandum of November 30, 2022 (87 Fed. Reg. 74479, relating to uniform standards for Tribal consultation), before providing Federal financial assistance to such covered entity for such project.

(B)

Items described

Each of the following is an item described in this subparagraph:

(i)

The land, including allotted, ceded, or traditional land, or an interest in such land, of an Indian Tribe or member of an Indian Tribe.

(ii)

Tribal land, cultural practices, resources, or access to traditional areas of cultural or religious importance.

(iii)

Any part of any Federal land that shares a border with Indian country.

(iv)

The protected rights of an Indian Tribe, whether or not such rights are enumerated in a treaty, including water, hunting, gathering, and fishing rights.

(v)

The ability of an Indian Tribe to govern or provide services to the members of the Indian Tribe.

(vi)

The relationship between the Federal Government and an Indian Tribe.

(vii)

The trust responsibility of the Federal Government to an Indian Tribe.

(7)

Clawback

(A)

Project dates

If the Secretary provides to a covered entity under the program established under paragraph (1) Federal financial assistance for a project for which the covered entity submitted an application under paragraph (2), the Secretary shall—

(i)

establish dates by which the project shall commence and be completed; and

(ii)

include compliance with such dates as a condition of such provision of Federal financial assistance.

(B)

Progressive recovery for delays

(i)

In general

If the Secretary provides to a covered entity under the program established under paragraph (1) Federal financial assistance for a project for which the covered entity submitted an application under paragraph (2) and the project does not commence and complete by the dates described in subparagraph (A) established for such project, the Secretary shall progressively recover up to the full amount of such Federal financial assistance.

(ii)

Waiver

The Secretary may waive the application of clause (i) with respect to a project described in that clause if the Secretary makes a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for the project not commencing and completing by the dates described in subparagraph (A) established for such project.

(C)

Technology clawback

The Secretary shall recover the full amount of Federal financial assistance provided to a covered entity under the program established under paragraph (1) if, during the applicable term with respect to the Federal financial assistance and the project for which the covered entity received the Federal financial assistance, the covered entity knowingly engages in any joint research or technology licensing effort—

(i)

with a foreign entity of concern or a subsidiary of a foreign entity of concern; and

(ii)

that relates to a technology or product that raises national security concerns, as determined by the Secretary and communicated to the covered entity before engaging in such joint research or technology licensing.

(D)

Environmental clawback

The Secretary shall progressively recover up to the full amount of Federal financial assistance provided to a covered entity under the program established under paragraph (1) if, during the applicable term with respect to the Federal financial assistance and the project for which the covered entity received the Federal financial assistance, the covered entity remains out of compliance for more than 30 days with any—

(i)

environmental mitigation or monitoring requirement applicable to the project for which the covered entity received Federal financial assistance; or

(ii)

requirement of the—

(I)

Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);

(II)

Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);

(III)

Toxic Substances Control Act (15 U.S.C. 2601 et seq.);

(IV)

Safe Drinking Water Act (42 U.S.C. 300f et seq.);

(V)

Clean Air Act (42 U.S.C. 7401 et seq.); or

(VI)

Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).

(E)

Congressional notification

The Secretary shall notify the appropriate committees of Congress—

(i)

each time the Secretary recovers amounts under subparagraph (B), (C), or (D); and

(ii)

of each waiver provided under subparagraph (B)(ii) not later than 15 days after the date on which such a waiver is provided.

(b)

Coordination required

In carrying out the program established under subsection (a), the Secretary shall coordinate with the Secretary of Defense, the Secretary of Energy, the Secretary of Commerce, and the Chief of the Forest Service.

(c)

GAO reviews

The Comptroller General of the United States shall—

(1)

not later than 2 years after the date of the first disbursement of Federal financial assistance under the program established under subsection (a), and biennially thereafter for 10 years, conduct a review of the program, which shall include, at a minimum—

(A)

a determination of the number of instances in which Federal financial assistance was provided under the program during the period covered by the review;

(B)

an evaluation of how—

(i)

the program is being carried out, including how recipients of Federal financial assistance are being selected under the program; and

(ii)

other Federal programs are leveraged for manufacturing, research, and training to complement the Federal financial assistance provided under the program;

(C)

a description of the outcomes of each project supported by Federal financial assistance provided under the program, including a description of—

(i)

facilities and equipment described in subsection (a)(1) that were constructed, expanded, or modernized as a result of Federal financial assistance provided under the program;

(ii)

research and development carried out with Federal financial assistance provided under the program; and

(iii)

workforce training programs carried out with Federal financial assistance provided under the program, including efforts to hire individuals from disadvantaged populations; and

(D)

a description of any effect of the program on the environment, including any potential environmental effect of a project for which a covered entity receives Federal financial assistance under the program on Indian Tribes and communities located near such project; and

(2)

submit to the appropriate committees of Congress the results of each review conducted under paragraph (1).

5.

Restrictions on foreign entities of concern

(a)

Restriction on location and issuance of leases

A foreign entity of concern and an entity that is a subsidiary of a foreign entity of concern may not—

(1)

locate a mining claim, millsite, or tunnel site under the general mining laws;

(2)

be issued a lease under the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) for hardrock minerals; or

(3)

be an operator of a covered mining claim or a lease described in paragraph (2).

(b)

Restriction on sale or transfer

A mining claim, millsite, or tunnel site located under the general mining laws or lease issued pursuant to the mineral leasing laws for hardrock minerals may not be sold or otherwise transferred to—

(1)

a foreign entity of concern; or

(2)

an entity that is a subsidiary of a foreign entity of concern.

6.

Definitions

In this Act:

(1)

Appropriate committees of Congress

The term appropriate committees of Congress means—

(A)

the Committee on Energy and Natural Resources, the Committee on Commerce, Science, and Transportation, the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Appropriations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Finance of the Senate; and

(B)

the Committee on Energy and Commerce, the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Science, Space, and Technology, the Committee on Appropriations, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives.

(2)

Beneficiation

The term beneficiation means—

(A)

the crushing and grinding of locatable mineral ore; and

(B)

any process that is employed to free a mineral from other constituents, including physical and chemical separation techniques.

(3)

Casual use

(A)

In general

The term casual use means a mineral activity that ordinarily results in no or negligible disturbance of Federal land or Federal resources.

(B)

Inclusions

The term casual use includes the collection of a geochemical, rock, soil, or mineral specimen using a hand tool, hand panning, or nonmotorized sluicing.

(C)

Exclusions

The term casual use does not include—

(i)

the use of—

(I)

mechanized earth-moving equipment, suction dredging, or any explosive;

(II)

a motor vehicle in an area closed to motor vehicles; or

(III)

any toxic or hazardous material; or

(ii)

the construction of roads or drill pads.

(4)

Claim holder

The term claim holder means a person that holds a covered mining claim.

(5)

Control

The term control means having the ability to determine the manner in which a person conducts a mineral activity.

(6)

Covered entity

The term covered entity means a domestic person that is—

(A)

a private entity;

(B)

a consortium of private entities; or

(C)

a consortium of public and private entities.

(7)

Covered mining claim

The term covered mining claim means a mining claim, millsite, or tunnel site that is located under and maintained in compliance with the general mining laws.

(8)

Covered nation

The term covered nation has the meaning given the term in section 4872(f) of title 10, United States Code.

(9)

Critical mineral

The term critical mineral—

(A)

has the meaning given the term in section 7002(a) of the Energy Act of 2020 (16 U.S.C. 1606(a)); and

(B)

does not include metallurgical coal or uranium.

(10)

Exploration

(A)

In general

The term exploration means the creation of a surface disturbance (other than through casual use) to evaluate the type, extent, quantity, or quality of minerals present.

(B)

Inclusions

The term exploration includes sampling, drilling, or developing surface or underground workings to evaluate locatable mineral values.

(C)

Exclusions

The term exploration does not include the extraction of minerals for commercial use or sale.

(11)

Domestic person

The term domestic person means—

(A)

an individual who is a citizen or national of the United States; and

(B)

a partnership, association, corporation, organization, or other combination of persons that is—

(i)

organized under the laws of the United States or any jurisdiction within the United States; and

(ii)

not a foreign person.

(12)

Federal land

The term Federal land means any land or interest in land that is—

(A)

owned by the United States; and

(B)

open to the location of mining claims, millsites, or tunnel sites under the general mining laws.

(13)

Foreign-controlled entity

The term foreign-controlled entity—

(A)

means an entity with respect to which any foreign person, directly or indirectly, through any contract, arrangement, understanding, relationship, intermediary, or otherwise—

(i)

owns or controls 25 percent or more of the voting interest;

(ii)

holds the power to appoint a majority of the governing body, if any; or

(iii)

possesses substantial control to direct or determine important business or legal matters of; and

(B)

does not include an entity with respect to which subparagraph (A) does not apply and any foreign person has only a passive and non-controlling investment interest.

(14)

Foreign entity of concern

(A)

In general

The term foreign entity of concern has the meaning given the term in section 40207(a) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)).

(B)

Clarification

A foreign entity of concern is subject to the jurisdiction or direction of a government of a foreign country that is a covered nation within the meaning of section 40207(a)(5)(C) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5)(C)) if the foreign entity of concern is more than 10 percent owned, directed, controlled, or financed, directly or indirectly, individually or in aggregate, by any individual that is a citizen, national, or permanent resident, or is an entity subject to the jurisdiction of the government, of a covered nation.

(15)

Foreign person

The term foreign person means—

(A)

an individual who is not a citizen or national of the United States;

(B)

the government of a foreign country and any agency or instrumentality of such government;

(C)

an entity organized under the laws of or having its principal place of business in a foreign country; and

(D)

a foreign-controlled entity.

(16)

Fund

The term Fund means the Hardrock Mineral Reinvestment Fund established by section 3(a).

(17)

Indian country

The term Indian country has the meaning given the term in section 1151 of title 18, United States Code.

(18)

Indian Tribe

The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

(19)

Institution of higher education

The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).

(20)

Locatable mineral

(A)

In general

The term locatable mineral means any mineral—

(i)

the legal and beneficial title to which remains in the United States; and

(ii)

that is not subject to disposition under—

(I)

the Mineral Leasing Act (30 U.S.C. 181 et seq.);

(II)

the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.);

(III)

the Act of July 31, 1947 (commonly known as the Materials Act of 1947) (30 U.S.C. 601 et seq.); or

(IV)

the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.).

(B)

Exclusions

The term locatable mineral does not include any mineral that is—

(i)

subject to a restriction against alienation imposed by the United States; and

(ii)

held in trust by the United States for, or owned by, any Indian Tribe or member of an Indian Tribe.

(21)

Mineral activity

The term mineral activity means any activity carried out on a covered mining claim, or Federal land used in conjunction with the activity, for, relating to, or incidental to exploration, mining, or beneficiation for, or processing or reclamation of, any locatable mineral.

(22)

Operator

The term operator means—

(A)

any person proposing, or authorized by a permit, to conduct a mineral activity; and

(B)

any agent of a person described in subparagraph (A).

(23)

Person

The term person means—

(A)

an individual, Indian Tribe, partnership, association, society, joint venture, joint stock company, firm, company, corporation, cooperative, trust, consortium, or other organization; and

(B)

any instrumentality of a State or local government, including any publicly owned utility or publicly owned corporation of a State or local government.

(24)

Processing

The term processing means processes downstream of beneficiation used to prepare locatable mineral ore into a final marketable product.

(25)

Secretary

The term Secretary means the Secretary of the Interior.

(26)

Small business

The term small business has the meaning given the term small business concern in section 3 of the Small Business Act (15 U.S.C. 632), notwithstanding section 121.103 of title 13, Code of Federal Regulations (as in effect on the date of the enactment of this Act).