The House of Representatives moved to provide long-term financial stability for survivors of natural disasters yesterday, unanimously passing the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.
The bipartisan legislation, also known as H.R. 5366, cleared the floor by a voice vote, marking a significant step toward simplifying the tax code for those rebuilding after hurricanes, wildfires, and other catastrophic events.
Originally introduced by Representative Greg Steube of Florida, the bill is co-led in the Senate by Rick Scott of Florida and Adam Schiff of California.
The legislation was recently renamed to honor the late Congressman Doug LaMalfa, a California Republican and original co-sponsor who passed away in January 2026 after years of advocating for disaster victims.
If signed into law, the act would codify and extend rules that allow individuals to deduct personal casualty losses resulting from federally declared disasters.
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Specifically, it addresses a common financial hurdle by allowing victims to deduct losses that exceed $500 without needing to meet the usual high-percentage thresholds of their adjusted gross income. It also extends the window for victims to exclude wildfire settlement payments from their gross income through January 1, 2027—a vital provision for those receiving legal settlements years after the smoke has cleared.
“Floridians are resilient in the face of natural disasters, and we always overcome them,” Senator Rick Scott said following the vote. “While neighbors help neighbors and communities rebuild, we should be doing everything we can to make it easier on disaster victims in Florida and around the country to put their lives back together. We certainly should not saddle them with more uncertainty about their taxes.”
The bill’s reach is national, targeting the financial fallout from events ranging from the Atlantic hurricane seasons to the perennial wildfires in the West. Senator Adam Schiff emphasized that the costs of surviving such events can be life-altering for many families.
“Surviving a natural disaster can place an enormous financial burden on families,” Schiff stated. “I’m proud that this bipartisan effort with my colleagues… is advancing through Congress. As we work to get this bill to the President’s desk, we do so as a vital part of the late Doug LaMalfa’s legacy.”
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In the House, Representative Steube noted that the complexity of the current tax code often adds insult to injury for people who have lost their homes or businesses. He argued that the bill allows survivors to focus on physical reconstruction rather than navigating IRS paperwork.
“They should not be forced to face additional hardship and uncertainty by navigating a confusing and burdensome tax code after surviving such events,” Steube said. “Naming this legislation in [Doug LaMalfa’s] honor is a meaningful way to carry that important work forward.”
The legislation now moves to the Senate for further consideration. If passed and signed, the amendments to the Internal Revenue Code would apply to tax years beginning after December 31, 2024, for casualty losses, and December 31, 2025, for wildfire relief payments.
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