Federal Disaster Tax Relief Act of 2025
Summary
If enacted, this bill would provide tax relief to individuals and families recovering from hurricanes, wildfires, and other federally declared disasters by making it easier to claim losses on their tax returns. The bill has passed committee review and is eligible for a floor vote in the House.
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Lifecycle of the Bill
Committee Consideration and Mark-up Session Held
Mar 25, 2026
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 43 - 0.
Mar 25, 2026
Mar 25, 2026 · 10:00
H.R. 2347, H.R. 5366, H.R. 5334, H.R. 7971, H.R. 7959
Summary
On March 25, 2026, the House Committee on Ways and Means held a markup session to consider five bipartisan tax-related bills. The committee examined H.R. 2347 (Survivor Justice Tax Prevention Act), H.R. 5366 (Federal Disaster Tax Relief Act of 2025), H.R. 5334 (Supporting Early-childhood Educators' Deductions Act), H.R. 7959 (IRS Whistleblower Program Improvement Act), and H.R. 7971 (Taxpayer Experience Improvement Act). This was a markup session where the committee voted on amendments and whether to advance the bills, rather than a hearing with outside witnesses. The bills addressed multiple policy areas. H.R. 2347 would exclude compensatory damages for sexual assault from taxable income, eliminating the requirement for victims to prove visible physical injury. H.R. 5366 would provide tax relief for natural disaster victims by allowing deductions for disaster-related losses and excluding wildfire relief payments from income. H.R. 5334 would expand the educator expense deduction to include early childhood educators, allowing them to deduct up to $350 annually for classroom supplies and materials. H.R. 7959 would strengthen protections for IRS whistleblowers by allowing anonymous proceedings before Tax Court, requiring interest payments on delayed awards, and establishing de novo review standards. H.R. 7971 would modernize IRS customer service through online dashboards showing wait times, expanded online account access, and callback options. All five bills advanced with strong bipartisan support. H.R. 2347 and H.R. 7959 passed by 41-0 votes, while H.R. 5366, H.R. 5334, and H.R. 7971 each passed 43-0. The bills now proceed to the full House of Representatives for consideration, though passage in the House does not guarantee Senate approval or enactment into law.
