The U.S. House of Representatives has passed a bipartisan bill aimed at providing significant tax relief to Americans recovering from federally declared natural disasters. Introduced by U.S. Representative Greg Steube (R-Fla.), the Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) extends current tax protections to ensure victims are not financially penalized by the tax code while rebuilding their lives.
The legislation allows disaster victims to deduct qualified casualty losses from their taxes without the requirement of itemizing deductions. These provisions apply to federally declared disasters occurring between July 4, 2025, and December 31, 2026. Additionally, the bill mandates that specific disaster relief payments will not be treated as taxable income.
“Floridians are far too familiar with the devastation and costly aftermath that natural disasters bring to their homes and communities,” Rep. Steube said. “They should not be forced to face additional hardship and uncertainty by navigating a confusing and burdensome tax code after surviving such events.”
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The bill is named in honor of the late Congressman Doug LaMalfa, a California Republican who spent years advocating for disaster survivors. It is being led in the Senate by Senator Rick Scott (R-Fla.), while Representatives Mike Thompson (D-Calif.) and Jimmy Panetta (D-Calif.) co-led the effort in the House.
“We certainly should not saddle them with more uncertainty about their taxes,” Senator Rick Scott stated. “I am proud to support this bill with Rep. Steube to provide Americans critical clarity in the disaster relief process and honor the late Rep. Doug LaMalfa’s extensive work on this issue.”
Ways and Means Committee Chairman Jason Smith noted that while the leadership on the bill came from states frequently hit by hurricanes and wildfires, the impact of the legislation is national. Representative Panetta added that the bill ensures “wildfire relief payments and hurricane losses continue to qualify for fair tax treatment,” providing families the “certainty, time, and tools they need to rebuild.”
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This legislative push follows Rep. Steube’s successful 2023 effort to pass the Federal Disaster Tax Relief Act, which utilized a rare discharge petition to reach the House floor and was signed into law in 2024. That previous measure provided billions in relief for victims of tornadoes, floods, and other catastrophic events.
The current bill has gained formal support from several organizations, including the National Fire Protection Association, Florida Citrus Mutual, the National Cattlemen’s Beef Association, and the Bipartisan Policy Center Action. It now moves to the Senate for further consideration.
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