Doug LaMalfa Federal Disaster Tax Relief Certainty Act

Mr. President, I rise today to speak about the critical need for disaster relief in my home State of Texas for a Texas community that was devastated by historic wildfires. I will seek to improve the pending Disaster Tax Relief Act being considered by the Senate to address that acute need in Texas.

No doubt the current version provides relief that is also badly needed elsewhere. I would like to speak directly to the families of Spokane, WA, who have lost their homes, their livelihoods, their sense of security. The people of Texas stand with you, and we are profoundly grateful to the firefighters and first responders risking their lives to protect their neighbors. That is a pain families in Texas know all too well.

In 2024, Texas witnessed truly horrific wildfires. The Smokehouse Creek fire was the single largest wildfire in the history of the State of Texas. It killed two people. It burned more than 1 million acres. It destroyed more than 500 homes and businesses, and it killed approximately 15,000 cattle.

The Windy Deuce fire was among the most destructive and fast-moving wildfires ever to strike the Texas Panhandle. It burned more than 140,000 acres. Despite the horror and the destructiveness of these fires, they were not treated as qualified wildfire disasters under Federal law.

One result is that any relief payments are subject to Federal income taxes, which dramatically reduces the scope and effectiveness of the badly needed relief. Victims of other catastrophic wildfires do not incur such penalties on the relief they receive.

Disaster relief is important. I am proud to support disaster relief. Americans step in and help their fellow Americans in times of crisis. But disaster relief must be fair. Disaster relief cannot demonstrate favoritism, choosing some recipients as more worthy or luckier than others.

My amendment does something very simple. It includes in this disaster relief bill the worst wildfire in the history of the State of Texas. On any reasonable argument on the merits, the Texas Panhandle wildfires deserve to be included.

I would note also that the score of this provision is, in congressional terms, quite small: $31 million is what this addition costs. In this body, $31 million is a sum that is usually too small even to be written down. Moreover, the House of Representatives and, in particular, the chairman of the Ways and Means Committee has explicitly committed that if and when we add this disaster bill, that the House, in September when they return, will take it up and pass it.

So this is the path, No. 1, to passing this disaster bill--which I very much want to do--but No. 2, to doing so in a way that does not unfairly leave out the Texans, the victims of the largest wildfire in the history of Texas. We have got to do both.

And so I will now propound a unanimous consent request to take up and pass my amendment to the Doug LaMalfa Federal Disaster Tax Relief Certainty Act to designate the Smokehouse Creek fire and the Windy Deuce fire as qualified wildfire disasters, ensuring that relief payments to those affected receive the same Federal tax treatment as victims of other qualified wildfires.

I urge my colleagues to pass this commonsense amendment today so that Texans receive the same treatment as other victims of wildfires. And I would note that if my colleagues choose not to accept the amendment, the alternative is going to be that nothing passes. That is not an alternative that is good for anybody, and so my hope is that common sense will prevail.

Mr. President, as if in legislative session and notwithstanding rule XXII, I ask unanimous consent that the Finance Committee be discharged from further consideration of H.R. 5366, and the Senate proceed to its immediate

consideration. I further ask that the Cruz amendment at the desk be considered and agreed to; that the bill, as amended, be considered read a third time and passed; and that the motion to reconsider be considered made and laid upon the table.

Reserving the right to object.

I would note that I agree with virtually every word that was said by the Senator from Oregon. I agree that this tax treatment taxing someone on a disaster relief settlement from, say, the power company that caused the fire--giving someone a big tax bill for that relief that they are entitled to, it is unfair; it is wrong. I am enthusiastic about passing this bill and passing it now.

What I am not enthusiastic about is leaving thousands of Texans out because just like the citizens of Oregon who suffered devastating losses, just like the citizens of California, just like the citizens of Washington State who suffered devastating losses, there were also thousands upon thousands of Texans who suffered devastating losses. And my proposal is very simple: Let's be fair. Let's not exclude the Texans. Let's provide the relief that is right and just to everyone who has been impacted by these devastating wildfires.

I will point out also the Senator from Oregon said there is an urgency to pass this. I want you to understand that--everyone watching--there are two paths that we can go down. One path is when I decline to make this modification, the Senator from Oregon could say nothing, could just be quiet, and then the Presiding Officer would say, ``No objection is heard,'' and this bill would pass the Senate with the Texans included so it would be fair. It would not be excluding people that are similarly situated. It would be treating everyone fairly, and it would go to the House.

The House will be back in September, and we have a commitment from the chairman of the Ways and Means Committee, the committee that has jurisdiction over this, to take this up and pass it. So if the Senator from Oregon chooses simply to say nothing, this bill moves on its way, and it is substantially closer to being signed into law and giving actual relief to the victims of these wildfires. However, the other path--and folks in the Gallery should listen for two words the Senator from Oregon says, ``I object.'' What will happen is the bill dies. It doesn't pass. The victims in Texas get no relief; the victims in Oregon get no relief; the victims in California get no relief; the victims in Washington State get no relief.

I don't understand why that is a good outcome. I think that is a terrible outcome. But the Senator from Oregon has complete control over which of those two paths we go down.

I will not modify my request.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. I thank Mr. Smith for his work on this bill, and I thank Mr. Steube for his partnership.

I represent communities in northern California that have been on the front lines of catastrophic wildfires for years. I sat with families who have watched their homes burn to the ground. I spoke with small business owners who lost not just their storefronts but their entire livelihoods. I met with farmers and growers who saw generations of work wiped out in a matter of hours.

After all of that, after the fire trucks leave, after the smoke clears, after the cameras are gone, those families are left to navigate through the aftermath.

They are dealing with insurance claims. They are trying to find temporary housing. They are figuring out how to rebuild their lives.

Then they run into the tax code.

In northern California, my constituents had to fight tooth and nail just to get basic, commonsense tax relief. Think about that.

Congressman LaMalfa and I had to fight to pass this relief, and we worked to mobilize victims to speak out and demand that that tax relief be forthcoming.

People who lost everything should not have to come to Washington, D.C., to fight for relief. We should not be asking disaster victims to lobby Congress in the middle of recovery. We should not be telling families that the help they receive to build their homes might come with a tax bill attached. We should not be forcing communities into uncertainty every single time disaster strikes.

This legislation ensures that when Americans receive disaster relief they are not penalized by paying tax on that relief.

This is not just about the past. It is about what is happening right now.

In Los Angeles, across southern California, in Hawaii, and in Colorado, families reeling from devastating fires are being forced to navigate the same uncertainty those in my district faced. They should not have to come back to Congress and ask for relief that we already know is necessary.

Disaster relief should not depend on your ability to navigate Congress. It should be automatic. It should be fair, and it should be there when you need it.

This bill is a step toward that goal. It reflects what we have learned from northern California. It reflects the realities facing communities in Los Angeles, Hawaii, and Colorado. This legislation is a great first step, and we should now work to make this relief permanent going forward.

Mr. Speaker, I urge my colleagues to support this legislation, and I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from California (Mr. Panetta), a valued member of the Ways and Means Committee and someone who has seen firsthand what devastating wildfires can do to your district.

Mr. Speaker, I yield 3 minutes to the gentlewoman from Hawaii (Ms. Tokuda). She has seen devastating wildfire that impacted her district and her constituents, and she has done great work to bring relief to them.

Mr. Speaker, I yield myself the balance of my time to close.

Mr. Speaker, this bill is about basic fairness. When Americans lose their homes to wildfires or other disasters, the last thing they should face is a tax bill on the help they received to rebuild that home.

My constituents in northern California had to fight for that relief. Families in Los Angeles should not have to do the same, nor should they in Colorado, Hawaii, or anyplace else.

Let's pass this bill today and then do the work to make these protections permanent so no disaster victim has to come back to Congress for relief ever again.

Mr. Speaker, this legislation is rightfully named after our former colleague and friend, Doug LaMalfa, who worked hard to protect his fire victims. We should pass this bill.

Mr. Speaker, I urge everyone to vote ``yes,'' and I yield back the balance of my time.

Mr. Speaker, I rise today in support of H.R. 5366, the Doug LaMalfa Federal Tax Relief Certainty Act.

When hurricanes, wildfires, floods, tornadoes, and other disasters strike, American families are left to rebuild their homes, their businesses, their communities, and their lives. When these moments arise, the last thing they need is the Federal Government making their recovery harder by taxing relief payments or denying fair treatment for disaster losses, nor should the government be creating uncertainty in the tax code.

This legislation provides certainty to disaster victims by extending and codifying commonsense tax relief for Americans impacted by federally declared disasters. It allows individuals to deduct qualified disaster-related casualty losses without having to itemize, removes burdensome limitations that can prevent families from receiving relief, and ensures certain wildfire relief payments are not treated as taxable income.

For families in Florida, this issue is not theoretical. We know all too well

what it means to rebuild after hurricanes, flooding, storm surge, and the aftermath of these disasters. Recovery does not happen overnight, and families should not be forced to navigate a confusing tax code, especially without certainty in what that code may be as they are still trying to repair their homes, replace their belongings, and get back on their feet.

No one understood this better than our former colleague Doug LaMalfa of California. For 13 years, Doug served in Congress as a tireless advocate for disaster victims and spent years fighting to ensure families impacted by wildfires specifically receive fair treatment under the tax code.

Last Congress, I was honored to fight along with Doug as I led a bipartisan coalition alongside our colleagues on the floor with us right now, Jimmy Panetta, Mike Thompson, and Jill Tokuda, as well as former Representative Bill Johnson of Ohio.

Our historic efforts culminated with the Federal Disaster Tax Relief Act of 2023 being signed into law on December 12, 2024, delivering billions in disaster tax relief to millions of Americans across 48 States.

The bill we are voting on today builds upon that legislation. Today is an opportunity to secure disaster relief certainty for the wildfire victims that Doug LaMalfa spent years fighting for. It is also an opportunity to secure relief for disaster survivors who have experienced a tragic event since July 4, 2025, and who may experience one in 2026.

With hurricane season on the horizon, it is critical that Floridians have certainty in the tax code.

I thank Chairman Smith for his leadership in advancing this legislation through the Ways and Means Committee with unanimous bipartisan support. I also thank Senator Rick Scott for leading this bill in the Senate and being a tireless leader on this issue.

I also thank my aforementioned colleagues on the other side of the aisle, Jimmy Panetta, Mike Thompson, and Jill Tokuda, for their commitment to securing disaster relief for their constituents and Americans regardless of political affiliation or geography.

Finally, I thank Doug LaMalfa for being an ally, a friend, and a fighter. Doug is deeply missed in this institution, and naming this bill in his honor is a simple but meaningful tribute.

Mr. Speaker, when Americans are recovering from disaster, they deserve clarity, certainty, and relief, not more red tape from Washington. I urge my colleagues to support the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5366) to amend the Internal Revenue Code of 1986 to codify and extend the rules for personal casualty losses arising from major disasters and the rules for the exclusion from gross income of compensation for losses or damages resulting from certain wildfires, as amended.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and submit extraneous material on this bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

I rise in support of H.R. 5366, the Doug LaMalfa Federal Disaster Tax Relief Certainty Act, bipartisan legislation introduced by Representatives Greg Steube, Mike Thompson, and Jimmy Panetta and named after our late colleague, Mr. Doug LaMalfa, who dedicated his life to public service and was a very strong advocate for helping so many of his constituents whose lives had been turned upside down by wildfires.

The chief sponsor of this legislation, Representative Steube, hails from the State of Florida, which is no stranger to the worst of natural disasters, including hurricanes that have devastated communities there and everywhere.

The bipartisan work that has been done in advancing this legislation speaks to the fact that no community in America is safe from a potential natural disaster. Every Member of this body has had to or will have to at some point respond to some level of devastation brought to the doorsteps of the folks who they represent because of a natural disaster.

This bill appropriately extends an existing provision within the law that allows taxpayers to deduct personal casualty losses stemming from a natural disaster while also excluding wildfire disaster relief payments from taxable income. These are the commonsense measures that ensure Americans recovering from a disaster have fewer tax burdens and more resources to navigate their recovery.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Florida (Mr. Steube), the sponsor of this legislation, who has been a very strong advocate for recovering from natural disasters, including the citizens of his home State of Florida.

Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Fong).

Mr. Speaker, I am prepared to close, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time to close.

Mr. Speaker, in 2024, Congress acted to provide critical tax relief for Americans hit hard by natural disasters. The goal was clear: Provide relief to those who need it most.

With this legislation before us today, we have the opportunity to continue ensuring victims of natural disasters, including wildfires, continue to receive the relief that they deserve and the resources they desperately need to recover and rebuild.

I thank Representative Steube for this bill and for his hard work to appropriately pay tribute to our late colleague, Mr. LaMalfa, on an issue that was such a passion for him.

Mr. Speaker, I encourage my colleagues to support this legislation, and I yield back the balance of my time.

Mr. Speaker, I thank Mr. Thompson and Mr. Steube for allowing me to speak on this topic. I support the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.

I am a proud cosponsor, co-lead of this bill with Representatives Greg Steube and Mike Thompson, a bill that would build on the Federal Disaster Tax Relief Act which we passed last Congress, thanks to the leadership of Representative Steube, a bill that would ensure that those impacted by disasters nationwide have continued access to tax relief.

This is one of those bills, as you are going to hear from Representative Steube, from Mr. Thompson, and from Ms. Tokuda, that is not a partisan topic when it comes to providing proper tax relief for our constituents who have been affected by natural disasters, disasters that don't just affect red States or blue States. They affect all American States. That is why this bill is so important.

It would extend the provisions of the Federal Disaster Tax Relief Act through 2026 to, one, ensure that those affected by fires and natural disasters can claim the personal casualty loss deduction to help in the recovery. Two, would exempt fire settlements from taxation to avoid devastating tax bills on wildfire victims.

Unfortunately, after most natural disasters, there are limitations in the tax code that make it very difficult for survivors to claim the casualty loss deduction for uninsured losses.

Specifically, losses must be attributable to a federally declared disaster and exceed 10 percent of adjusted gross income. That prevents many from qualifying for tax relief. In fact, the tax code ends up penalizing fire victims by treating settlements from fires as income for tax purposes. That can trigger a bill, as we have heard, as large as 37 percent of the settlement.

Now, the Federal Disaster Tax Relief Act that was signed into law last Congress addresses those issues by ensuring that those who received settlements for certain wildfires, including payments from the Fire Victim Trust, do not have to pay taxes on those payments.

It also designates certain federally declared disasters as qualified disasters for the purposes of determining personal casualty losses. That ensures that families who incurred uninsured losses due to a natural disaster, be it damage to their home or property, can declare that loss and lower their tax bill.

If we do not pass this bill, the thousands of people who survived the 2025 Los Angeles fires, who received settlements, risk a devastating tax bill and face limitations recouping uninsured losses.

That is why Congress is acting in a bipartisan way to prevent the tax code from penalizing constituents who are trying to rebuild after such disasters.

Mr. Speaker, I urge my colleagues to support this commonsense bill to extend the Federal Disaster Tax Relief Act, to help families all across America, from Hawaii to California to Florida and those in between, who are struck by natural disasters and get the necessary tax relief to recover, rebuild, and move forward with their lives.