Senator Rick Scott has announced growing bipartisan and bicameral support for the Federal Disaster Tax Relief Act of 2025. Senator Adam Schiff is co-leading the effort in the Senate, while Congressman Greg Steube leads the initiative in the House with Congressman Mike Thompson as co-lead. The legislation aims to provide tax relief to victims of federally declared disasters, such as hurricanes and wildfires, through the end of 2026. It also extends the ability for victims to make tax-deductible payments from wildfire settlements through 2030.
In a statement, Senator Rick Scott said, “It is great to have bipartisan support on our common-sense legislation to provide tax relief to victims of natural disasters – this effort sends an important message to families that their federal government is here to support them after disaster strikes. We have seen the absolute heartbreak families experience after any natural disaster – whether that’s hurricanes, wildfires, or massive flooding – as they’ve lost everything and are working hard to get back on their feet. Our bill extends this relief through the end of 2026 to ensure relief is available for any victims, and expands support for the victims of wildfires like the California fires in January that took innocent lives and caused massive damage that families are still working to recover from. This legislation is an important step to ensure that when disaster strikes, Washington stands with survivors, not against them.”
Senator Adam Schiff added, “Surviving a natural disaster can place an enormous financial burden on families. That’s why it’s critical we find ways to support victims of devastating disasters like the wildfires in California. I’m proud to join this bipartisan effort with Senator Rick Scott to ensure that those hit the hardest when disaster strikes receive the support and the tax relief they need to recover.”
Congressman Greg Steube stated, “Allowing taxpayers to write off damages from natural disasters is a no-brainer. Millions of Floridians have already benefited from my Federal Disaster Tax Relief Act as they rebuild from the last several hurricane seasons. This law provides a much-needed lifeline to families as they navigate the most difficult of times. I am grateful to partner with Senator Rick Scott to extend this critical part of the federal government’s emergency response.”
Congressman Mike Thompson commented, “After disaster strikes, survivors face not only the loss of their loved ones, homes, and livelihoods, but they also face the uncertainty of how to begin again. In those moments, the last thing a survivor should fear is whether they qualify for tax relief. I am proud to work with my colleagues to expand on our disaster tax relief work and ensure survivors have the certainty and support they deserve.”
Congressman Doug LaMalfa said, “Families who lose their homes and livelihoods in a wildfire shouldn’t be hit with the possibility of a tax bill on their equity affecting the very payments meant to help them recover. This bill ensures disaster relief is treated fairly and victims aren’t left fighting with the IRS on top of other challenges they may face. I’m pleased to join Congressman Steube in leading it.”
Congressman Jimmy Panetta remarked, “Families and communities recovering from natural disasters shouldn’t face the added burden of arbitrary deadlines that cut off their access to critical tax relief. Our bipartisan bill extends those deadlines and ensures that wildfire relief payments and hurricane losses continue to qualify for fair tax treatment. By providing this certainty, we can give disaster-impacted Americans the time and tools they need to rebuild and move forward.”
The proposed legislation builds upon previous efforts by Senator Scott and Congressman Steube during an earlier session of Congress when similar measures were enacted.
