Sponsors (2)
The bill broadens and clarifies tax-free treatment for named beneficiaries of public-safety officers—helping more survivors—but creates a small fiscal cost, risks leaving some prior "dependents" worse off, and adds administrative complexity.
Surviving beneficiaries of public safety officers (e.g., named beneficiaries, not just "surviving dependents") can exclude qualifying public-safety compensation and life-insurance/benefit-plan payouts from gross income, widening tax-preferred treatment to more families of officers.
Taxpayers and the IRS get clearer tax treatment for beneficiaries, reducing uncertainty and the likelihood of disputes or inconsistent filings about who qualifies for the exclusion.
Some individuals who previously qualified as "surviving dependents" may not meet the new "surviving beneficiary" definition and could lose eligibility for the income exclusion, directly harming certain survivors of public-safety officers.
Expanding exclusions to named beneficiaries modestly reduces federal income tax receipts, which could increase the budget deficit or place pressure on other revenue sources or spending choices.
The change could create administrative and compliance burdens for the IRS and for taxpayers as agencies and filers sort out which legal definition applies for tax years after 2022, increasing costs and potential for mistakes or audits.
Based on analysis of 3 sections of legislative text.
Alters Internal Revenue Code wording to expand/clarify which beneficiaries of public safety officers can exclude certain compensation and life-insurance benefits from gross income.
Official title: To amend the Internal Revenue Code of 1986 to provide tax relief relating to public safety officers' death benefits, and for other purposes.
Introduced June 11, 2026 by Randy Weber · Last progress June 11, 2026
Changes in federal tax law expand and clarify who may receive tax exclusions tied to certain public safety officer benefits. The bill replaces the term "surviving dependents" with "surviving beneficiaries" for one exclusion and adds "a beneficiary of any life insurance policy or benefit plan" alongside "a child" in another provision, both effective for tax years beginning after December 31, 2022.