II
Calendar No. 360
119th CONGRESS
2d Session
S. 4125
IN THE SENATE OF THE UNITED STATES
March 17, 2026
Mr. Wyden (for himself, Mr. Schumer, Mr. Luján, Mr. Welch, and Mr. Whitehouse) introduced the following bill; which was read the first time
March 18, 2026
Read the second time and placed on the calendar
A BILL
To amend the Internal Revenue Code of 1986 to impose a tax on damages received by certain officers of the United States on account of any civil action filed against the United States, and for other purposes.
Short title
This Act may be cited as the Stop Presidential Embezzlement Act
.
Imposition of tax on damages received by the President of the United States on account of civil action filed against the United States
In general
Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:
Certain civil damages received by certain officers of the United States
Imposition of tax on damages received on account of civil action filed against the United States
In general
There is hereby imposed on each covered person for any taxable year a tax equal to 100 percent of the qualified civil action amount received by such person during such taxable year.
Covered person
For purposes of this section—
In general
The term covered person means—
any individual who has served in a position described in paragraph (2), and
any person related (within the meaning of section 267(b)) to a person described in subparagraph (A).
Position described
The positions described in this paragraph are the following:
President of the United States.
Vice President of the United States.
Any position at level I of the Executive Schedule under section 5312 of title 5, United States Code.
Member of Congress (including any Delegate and Resident Commissioner).
Qualified civil action amount
For purposes of this section—
In general
The term qualified civil action amount means, with respect to any covered person during any taxable year, the aggregate amount of damages received by such person during such taxable year (whether by settlement, verdict, judgment, or otherwise) on account of any civil action—
filed by such person against the United States (or any agency or instrumentality thereof), and
with respect to which the filing or settlement of, or issuance of a verdict or judgment for, occurred during the applicable period.
Applicable period
The term applicable period means, with respect to any covered person, the period of time—
beginning with the date on which the individual described in subsection (b)(1)(A) began serving in a position described in subsection (b)(2)(A), and
ending with the date on which is one year after the date on which such individual last served in any position described in subsection (b)(2)(A).
Special rules
Administrative provisions
For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
Exclusion from gross income
For purposes of chapter 1, the gross income of any covered person for any taxable year shall not include any qualified civil action amount received by such person during such taxable year.
.
No deduction from income tax
Section 275(a)(6) of the Internal Revenue Code of 1986 is amended by inserting 50B,
after 50A,
.
Clerical amendment
The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by inserting after the item relating to chapter 50A the following new item:
.
Effective date
The amendments made by this section shall apply with respect to amounts received after the date of the enactment of this Act.
March 18, 2026
Read the second time and placed on the calendar