S.Amdt. 3234

SA 3234. Mr. CASSIDY submitted an amendment intended to be proposed
by him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle F of title X, add the following:

SEC. 1067. RESTORATION OF AMOUNTS IMPROPERLY WITHHELD FOR TAX
PURPOSES FROM SEVERANCE PAYMENTS TO VETERANS OF
THE COAST GUARD WITH COMBAT-RELATED INJURIES.

(a) Application to Members of the Coast Guard When the
Coast Guard Is Not Operating as a Service in the Department
of the Navy.--The Combat-Injured Veterans Tax Fairness Act of
2016 (Public Law 114-292; 10 U.S.C. 1212 note) is amended--
(1) in section 3(a)--
(A) in the matter preceding paragraph (1), by inserting
``(and the Secretary of Homeland Security, with respect to
the Coast Guard when it is not operating as a service in the
Department of the Navy, and the Secretary of Transportation,
with respect to the Coast Guard during the period in which it
was operating as a service in the Department of
Transportation)'' after ``the Secretary of Defense''; and
(B) in paragraph (1)(A)--
(i) in clause (i), by striking ``the Secretary'' and
inserting ``the Secretary of Defense (or the Secretary of
Homeland Security or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
(ii) in clause (ii), by striking ``the Secretary'' and
inserting ``the Secretary of Defense (or the Secretary of
Homeland Security or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)''; and
(iii) in clause (iv), by striking ``the Secretary'' and
inserting ``the Secretary of Defense (or the Secretary of
Homeland Security or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
(2) in section 4--
(A) in the section heading, by inserting ``and secretary of
homeland security'' after ``secretary of defense'';
(B) by inserting ``(and the Secretary of Homeland Security
with respect to the Coast Guard when it is not operating as a
service in the Department of the Navy)'' after ``The
Secretary of Defense''; and
(C) by striking ``made by the Secretary'' and inserting
``made by the Secretary of Defense (or the Secretary of
Homeland Security with respect to the Coast Guard)''; and
(3) in section 5--
(A) in subsection (a)--
(i) by inserting ``(and the Secretary of Homeland Security,
with respect to the Coast Guard when it is not operating as a
service in the Department of the Navy, and the Secretary of
Transportation, with respect to the Coast Guard during the
period in which it was operating as a service in the
Department of Transportation)'' after ``the Secretary of
Defense''; and
(ii) by striking ``the Secretary to'' and inserting ``the
Secretary of Defense (or the Secretary of Homeland Security
or the Secretary of Transportation, with respect to the Coast
Guard, as applicable) to''; and
(B) in subsection (b)--
(i) in paragraph (2), by striking ``the Secretary'' and
inserting ``the Secretary of Defense (or the Secretary of
Homeland Security or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)''; and
(ii) in paragraph (3), by striking ``the Secretary'' and
inserting ``the Secretary of Defense (or the Secretary of
Homeland Security, with respect to the Coast Guard when it is
not operating as a service in the Department of the Navy)''.
(b) Deadlines.--
(1) Identification of amounts improperly withheld and
reporting.--The Secretary of Homeland Security and the
Secretary of Transportation shall carry out the requirements
under--
(A) section 3(a) of the Combat-Injured Veterans Tax
Fairness Act of 2016 (Public Law 114-292; 10 U.S.C. 1212
note), as amended by subsection (a)(1), not later than one
year after the date of the enactment of this Act; and
(B) section 5 of that Act, as amended by subsection (a)(3),
not later than one year after the date of the enactment of
this Act.
(2) Ensuring amounts are not improperly withheld.--The
Secretary of Homeland Security shall carry out the
requirements under section 4 of the Combat-Injured Veterans
Tax Fairness Act of 2016 (Public Law 114-292; 10 U.S.C. 1212
note), as amended by subsection (a)(2), beginning on the date
of the enactment of this Act.
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