S. 878 (119th)Bill Overview

Coast Guard Combat-Injured Tax Fairness Act

Armed Forces and National Security|Armed Forces and National Security
Cosponsors
Support
Bipartisan
Introduced
Mar 6, 2025
Discussions
Bill Text
Current stageCommittee

Read twice and referred to the Committee on Finance.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

Amends the Combat‑Injured Veterans Tax Fairness Act of 2016 to explicitly include Coast Guard members (when the Coast Guard is not operating as a Navy service), assigns responsibilities among the Secretary of Defense, Secretary of Homeland Security, and Secretary of Transportation for identifying and restoring amounts improperly withheld from severance payments, and sets one‑year deadlines for identification and reporting and an immediate start for preventing improper withholding.

Why people may split

Concern over fiscal cost and lack of specified offsets

Watch point

Relative to its intended legislative type, this bill is a narrowly focused substantive amendment that clearly integrates the Coast Guard into the existing Combat-Injured Veterans Tax Fairness Act across different departmental statuses.

Amends the Combat‑Injured Veterans Tax Fairness Act of 2016 to explicitly include Coast Guard members (when the Coast Guard is not operating as a Navy service), assigns responsibilities among the Secretary of Defense, Secretary of Homeland Security, and Secretary of Transportation for identifying and restoring amounts improperly withheld from severance payments, and sets one‑year deadlines for identification and reporting and an immediate start for preventing improper withholding.

Passage75/100

Technically narrow, bipartisan-appearing veterans tax fix with modest fiscal impact and clear implementation steps—features that historically favor enactment.

CredibilityPartially aligned

Relative to its intended legislative type, this bill is a narrowly focused substantive amendment that clearly integrates the Coast Guard into the existing Combat-Injured Veterans Tax Fairness Act across different departmental statuses. It specifies the statutory text changes, responsible officials, and deadlines for action.

Contention28/100

Concern over fiscal cost and lack of specified offsets

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
VeteransFederal agencies

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • Potential benefitRestores improperly withheld taxes from severance payments to eligible combat-injured Coast Guard members.
  • VeteransExtends parity in tax relief between Coast Guard veterans and other armed service veterans.
  • Potential benefitRequires agencies to identify and report withholding errors within one year, improving accountability.
Likely burdened
  • Potential burdenRequires administrative work by Treasury, DHS, DOT, and DoD to identify and process refunds.
  • Federal agenciesRetroactive refunds will reduce federal receipts, producing a modest short‑term fiscal cost.
  • Potential burdenImplementation complexity and coordination could delay delivery of refunds to beneficiaries.
03 · Why people split

Why the argument around this bill splits.

Concern over fiscal cost and lack of specified offsets
Progressive95%

Likely strongly supportive.

The bill fixes an inequity for combat‑injured Coast Guard members, mandates agency action, and imposes clear deadlines to restore wrongly withheld payments.

Leans supportive
Centrist80%

Generally supportive but pragmatic.

Praises correcting an apparent administrative error and clear deadlines while seeking clarity on costs, verification, and implementation oversight.

Leans supportive
Conservative60%

Cautiously supportive on principle because it aids veterans, but concerned about taxpayer cost, retroactive refunds, and expanding inter‑agency obligations without offsets.

Split reaction
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood75/100

Technically narrow, bipartisan-appearing veterans tax fix with modest fiscal impact and clear implementation steps—features that historically favor enactment.

Scope and complexity
24%
Scopenarrow
24%
Complexitylow
Why this could stall
  • No CBO/estimated fiscal cost included in text
  • Administrative capacity and timeline to identify improper withholdings
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Concern over fiscal cost and lack of specified offsets

Technically narrow, bipartisan-appearing veterans tax fix with modest fiscal impact and clear implementation steps—features that historical…

Unlocked analysis

Relative to its intended legislative type, this bill is a narrowly focused substantive amendment that clearly integrates the Coast Guard into the existing Combat-Injured Veterans Tax Fairness Act across different depart…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
Open full analysis