HR 5898
Lejeune Untaxed Compensation and Settlements Act of 2025
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Bill overview
This bill, the Lejeune Untaxed Compensation and Settlements Act of 2025, proposes to exclude certain compensation and settlement amounts received by individuals affected by contamination at the Camp Lejeune military base from being considered taxable income. Specifically, it amends the Internal Revenue Code to ensure that damages awarded through the Camp Lejeune Justice Act of 2022 are not subject to federal income tax. This change aims to provide financial relief to those who have suffered harm due to the base’s water contamination.
Key provisions
- Excludes damages received through the Camp Lejeune Justice Act of 2022 from gross income.
- Amends Section 104(a) of the Internal Revenue Code.
- Designates paragraph (6) as paragraph (7) within the amended section.
- Specifies that the exclusion applies to ‘the amount of any damages received’.
Who is affected
- Veterans and their families
- Individuals who resided or worked at Camp Lejeune
- Plaintiffs in Camp Lejeune-related lawsuits
- Taxpayers receiving compensation related to Camp Lejeune contamination
Notable changes
- Provides a tax exemption for compensation received as a result of Camp Lejeune water contamination.
- Relies on the Camp Lejeune Justice Act of 2022 to determine eligibility for the exclusion.
Sponsors
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Primary sponsor
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119th CONGRESS — 1st Session
H. R. 5898
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code to exclude certain damages from gross income.
This Act may be cited as the Lejeune Untaxed Compensation and Settlements Act of 2025
.
in paragraph 5, by striking and
at the end,
by redesignating paragraph (6) as paragraph (7), and
by inserting after paragraph (5) the following new paragraph:
The amendments made by this section shall apply to damages received after the date of enactment of this Act.