Referred to the House Committee on Ways and Means.
The bill raises the tax-free amount that public safety officers may withdraw from governmental retirement plans for health and long-term care insurance from $3,000 to $6,000 per year. The change amends Section 402(l)(2) of the Internal Revenue Code and applies to taxable years beginning after December 31, 2025.
Liberal emphasizes retiree healthcare relief; conservatives emphasize fiscal cost and precedent
Relative to its intended legislative type, this bill is a narrowly focused substantive tax-code amendment that is precisely drafted to replace a single dollar amount and includes an appropriate effective date.
The bill raises the tax-free amount that public safety officers may withdraw from governmental retirement plans for health and long-term care insurance from $3,000 to $6,000 per year.
The change amends Section 402(l)(2) of the Internal Revenue Code and applies to taxable years beginning after December 31, 2025.
Very narrow, low-controversy tax exemption increases likelihood; final enactment depends on legislative vehicle and budget tradeoffs.
Relative to its intended legislative type, this bill is a narrowly focused substantive tax-code amendment that is precisely drafted to replace a single dollar amount and includes an appropriate effective date.
Liberal emphasizes retiree healthcare relief; conservatives emphasize fiscal cost and precedent
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberal emphasizes retiree healthcare relief; conservatives emphasize fiscal cost and precedent
Likely supportive: directs modest additional resources toward retired public safety officers' health and long-term care.
Views it as a targeted relief for frontline workers but may want broader, more progressive retiree health protections and consideration of offsets.
Cautiously favorable: a narrow, administratively simple tax change benefiting retired public safety officers.
Wants cost estimates, sunset or review, and assurance that fiscal impacts are manageable before full endorsement.
Mixed-to-leaning-supportive: welcomes tax relief and recognition for public safety retirees but worries about expanding federal tax expenditures and fiscal effects.
Would favor offsets, limits, or preference for state/local solutions.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Very narrow, low-controversy tax exemption increases likelihood; final enactment depends on legislative vehicle and budget tradeoffs.
The bill has not accumulated any surfaced votes yet.
Liberal emphasizes retiree healthcare relief; conservatives emphasize fiscal cost and precedent
Very narrow, low-controversy tax exemption increases likelihood; final enactment depends on legislative vehicle and budget tradeoffs.
Relative to its intended legislative type, this bill is a narrowly focused substantive tax-code amendment that is precisely drafted to replace a single dollar amount and includes an appropriate effective date.
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.