House Floor·Last action 18 days ago

Survivors could keep more settlement money tax-free

Officially: Survivor Justice Tax Prevention Act

Sexual abuse survivors could keep more of a court award or settlement. The bill would make most non-punitive damages for sexual acts or sexual contact tax-free. It would not cover punitive damages.

Where it stands

House Floor · Floor consideration Mon, Apr 27

Today. Members are taking positions right now.

What this bill actually does

The bill adds a new tax break for sexual abuse damages. It expands the current rule that already makes some damages for physical injury or sickness tax-free.
It uses definitions already in federal criminal law. The terms “sexual act” and “sexual contact” come from 18 U.S.C. section 2246.
Punitive damages would still be taxed. Only non-punitive damages tied to sexual acts or sexual contact would stay out of gross income, which is income counted for federal tax.

↓ Why your message matters here

The chamber votes today — constituent contact in the final stretch is the single biggest factor in how undecided members break.

Where this bill is in the process

Legislative timeline

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Introduced

Introduced in House

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House Committee

Under House committee consideration

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House Floor Vote

Voted on by House

Latest: Placed on the Union Calendar, Calendar No. 519. (4/9/2026)

APR 9

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Passed House

Approved by House

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Senate Review

Sent to Senate for consideration

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Passed Both Chambers

Approved by both House and Senate

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Signed into Law

Signed by the President

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Survivors could keep more settlement money tax-free

Legislative timeline

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