Sponsors (3)
The bill restores after-tax severance for combat-injured Coast Guard members and clarifies agency responsibilities to accelerate payments, but it creates added administrative costs and implementation risks for DHS and DOT.
Combat-injured Coast Guard members will be eligible to have tax-withheld severance amounts restored or refunded, increasing their after-tax compensation.
The bill clarifies which Cabinet Secretary administers payments and requires DHS and DOT to identify eligible members and report within one year, which should speed delivery of benefits and improve accountability.
DHS and DOT will incur additional administrative costs to implement refund/restoration processes and reporting requirements, which may require reallocating resources or additional funding.
Imposed deadlines and immediate implementation duties could strain agency capacity and increase the risk of implementation errors or delays if sufficient resources or guidance aren't provided.
Based on analysis of 2 sections of legislative text.
Explicitly extends the 2016 Combat-Injured Veterans tax-refund procedures to Coast Guard members by naming the relevant departmental Secretaries and setting implementation deadlines.
Official title: To amend the Combat-Injured Veterans Tax Fairness Act of 2016 to apply to members of the Coast Guard when the Coast Guard is not operating as a service in the Department of the Navy, and for other purposes.
Introduced April 21, 2025 by Don Davis · Last progress April 21, 2025
Makes members of the Coast Guard eligible for the tax-refund and restoration processes provided by the Combat-Injured Veterans Tax Fairness Act of 2016 by explicitly naming the Secretary of Homeland Security and, where applicable, the Secretary of Transportation alongside the Secretary of Defense. It requires those Secretaries to finish identification and reporting tasks within one year and directs the Department of Homeland Security to begin implementing amended payment procedures on enactment.