Sponsors (3)
The bill trades a targeted tax incentive to encourage retired military and law-enforcement personnel to serve as SROs — which can boost school safety and raise pay for those retirees — against modest federal revenue loss, extra administrative reporting burdens, and potential inequities for other school staff.
Retired U.S. Armed Forces members and retired law-enforcement officers who serve as school resource officers (SROs) can exclude their military or law-enforcement retirement pay from federal taxable income while working as SROs, and after 10 years of SRO service may permanently exclude that retirement income, increasing their take-home pay.
Students and school communities may see increased SRO staffing because the tax incentive encourages hiring retired military and law-enforcement into SRO roles, potentially improving school safety and the presence of experienced security personnel in schools.
All taxpayers could face a small negative effect because excluding retirement pay from taxable income for eligible SROs reduces federal income tax revenue, which may slightly shift fiscal pressure to other taxpayers or reduce funding for federal programs.
State and local law-enforcement agencies and other hiring bodies must file reports of SRO start and end dates, creating additional administrative burden and exposing agencies to penalties if notices are not timely filed.
Teachers, non-retired school staff, and other school-safety employees who do similar work are ineligible for the tax benefit, creating potential inequities and perceptions of unfairness among school personnel.
Based on analysis of 2 sections of legislative text.
Excludes retirement pay from federal gross income for retired military and retired law enforcement officers serving as school resource officers and creates a lifetime exclusion after 10 years of SRO service, plus an IRS reporting requirement.
Excludes from federal gross income retirement pay for retired members of the Armed Forces and retired law enforcement officers while they are employed as school resource officers (SROs), and grants a lifetime exclusion after an individual has served at least 10 years as an SRO. Requires Treasury to issue implementing regulations within 180 days and requires heads of law enforcement agencies to report SRO start and end dates to the IRS; failure to file the report is subject to an existing penalty rule. The change applies to taxable years beginning after enactment.
Introduced November 18, 2025 by Timothy Patrick Sheehy · Last progress November 18, 2025