Bill would exempt sexual assault settlement money from federal taxes
Floor vote pendingH.R. 2347Latest action
Sponsor: Lloyd Smucker · Representative · PA
AIDecoded by AI · checked against the recordRead the official text
Official title: Survivor Justice Tax Prevention Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govThe Daily Digest gives the Senate's next meeting as 1:30 p.m., Friday, October 9, a . A bill cannot be called up at one, so this page shows no live floor claim today. The record below is unchanged.
Senate Daily Digest · Oct 6, 2026Read the sourceSchedule checked Oct 9, 2026, 9:38 PM UTC
In plain words
The plain-language version comes first. The official text is always the reference.
Settlements or court awards tied to sexual assault or contact would become tax-free, even without physical injury proof.
40-second read · 4 questions answered below
What does this do?
The bill excludes settlement or court judgment money related to sexual assault or sexual contact from federal taxable income, even without documented physical injuries, as long as the damages aren't punitive. It also allows a statement in the settlement or ruling identifying it as sexual-assault-related to serve as credible evidence for tax purposes, easing the burden on survivors. Treasury and the Justice Department must help publicize the exclusion.
Who does it affect?
Survivors of sexual assault or misconduct who receive settlements or court judgments; also employers, insurers, and legal professionals handling such payments.
Why does it matter?
Currently, tax law clearly protects only damages from physical injuries, causing inconsistent tax treatment for sexual abuse survivors without medical documentation. The change would apply only to settlements or judgments finalized after the law takes effect.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Placed on Calendar Senate” text of Jul 14, 2026.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedMar 25, 2025
- House committee
- House vote
- SenateYou are here · Sep 30, 2026
- The president's desk
Right now: the Senate is deciding whether to bring it to a vote. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Cloture motion on the motion to proceed to the measure presented in Senate. (CR S5241)
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How it's being covered
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forbes.com
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intuitiveaccountant.com
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Bipartisan Tax Bills Clear CommitteeApr 9, 2026
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