Sponsors (5)
The bill treats damages paid to the President as taxable income—raising federal revenue and clarifying tax rules—while increasing IRS enforcement burden and reducing net recoveries for the President.
All taxpayers: Damages paid to the President from suits against the U.S. will be treated as taxable income, producing additional federal revenue.
IRS and federal tax administration: Clarifies tax treatment and reporting obligations for damages awarded to the President, reducing legal ambiguity and aiding enforcement.
Taxpayers/IRS: Implementing and enforcing taxability of such damages may increase IRS administrative costs and complexity, creating additional compliance burdens.
President of the United States: Imposes a new tax liability on damages received in civil suits against the U.S., reducing the President's net recovery from such awards.
Based on analysis of 2 sections of legislative text.
Makes damages paid to the President from civil suits against the United States taxable and tightens related deduction rules, effective after enactment.
Introduced February 10, 2026 by Ronald Lee Wyden · Last progress February 10, 2026
Imposes federal income tax on damages the President of the United States receives from civil actions brought against the United States and changes related deduction rules in the tax code. The change applies to amounts received after the date the law is enacted. The bill adds a new chapter to Subtitle D of the Internal Revenue Code to treat those damages as taxable and revises the code to disallow certain deductions tied to those payments (the specific deduction language in the text is omitted). It also updates the internal table of chapters to reflect the new chapter.