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S. 4580Senate119th Congress (2025-2027)In Committee

No Tax on Border Patrol Agent Overtime Act

Sponsored by John CornynSen. John Cornyn (R-TX)
Introduced May 20, 2026

AI-Generated Summary

Updated May 29, 2026 at 7:21 AM UTC

The No Tax on Border Patrol Agent Overtime Act changes the tax code so that overtime pay earned by certain U.S. Border Patrol agents is treated as "qualified overtime compensation" for tax purposes. By expanding the definition, the bill ensures that this overtime pay is not subject to the same tax treatment as regular wages. The change applies to border patrol agents and affects how their overtime earnings are taxed starting with tax years after 2025.

Key Provisions

  • Amends the Internal Revenue Code’s definition of "qualified overtime compensation" to specifically include overtime and supplemental pay received by Border Patrol agents, excluding hazardous duty pay.
  • Specifies that the included supplemental pay covers amounts described in sections (b)(2), (b)(3), premium pay under (c)(1), and overtime work pay under section 5542(g).
  • Sets the effective date of the amendment to taxable years beginning after December 31, 2025.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

May 20, 2026

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SenateIntro Referral

Introduced in Senate

May 20, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

May 20, 2026

Bill Text

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Introduced in SenateIssued May 20, 2026

II

119th CONGRESS

2d Session

S. 4580

IN THE SENATE OF THE UNITED STATES

May 20, 2026

Mr. Cornyn introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide that overtime pay provided to certain border patrol agents is qualified overtime compensation.

1.

Short title

This Act may be cited as the No Tax on Border Patrol Agent Overtime Act.

2.

Qualified overtime compensation for border patrol agents

(a)

In general

Section 225(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(1)

In general

For purposes of this section, the term qualified overtime compensation means—

(A)

overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed, or

(B)

amounts paid to a border patrol agent (as defined in subsection (a) of section 5550 of title 5, United States Code), other than the hazardous duty pay payable under subsection (c)(3) of such section, that are in excess of the rate of basic pay that would be in effect for such border patrol agent if the rate of basic pay of such border patrol agent were determined without regard to such section, including—

(i)

the supplemental pay described in subsection (b)(2) of such section,

(ii)

the supplemental pay described in subsection (b)(3) of such section,

(iii)

premium pay payable under subsection (c)(1) of such section, and

(iv)

pay for overtime work payable under section 5542(g) of such title.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.