Latest action: Referred to the House Committee on Ways and Means.
Referred to one or more standing committees for review, hearings, and possible markup.
Specific committees not parsed from action data.
The committee may hold hearings, amend the bill, or let it die without action.
Next: Reported
Full chamber floor — Speaker / Majority Leader controls scheduling
Creates a new tax on payments from settlement funds.
The problem
Settlement fund payments may not be adequately taxed under current law, potentially reducing government revenue from legal settlements and structured payments.
The proposal
Amends the Internal Revenue Code to impose a tax on specified settlement fund payments, establishing new tax obligations for these types of financial distributions.
The impact
Affects individuals receiving settlement payments and companies managing settlement funds. Increases tax obligations for settlement recipients and changes fund administration requirements.
The tax generates additional federal revenue from settlement payments that may currently escape full taxation. This could fund government programs without raising taxes on wage earners.
Ensures settlement recipients pay taxes similar to other income sources. Reduces potential tax advantages some people gain through settlement structures.
Addresses gaps in tax treatment of structured settlements. Prevents taxpayers from using settlement funds to avoid normal income taxation.
People receiving settlements from injuries, discrimination, or other harms face increased taxes on money meant to cover their losses. This reduces what they actually keep from settlements.
Settlement fund administrators must implement new tax compliance procedures and reporting requirements. Small settlement companies may struggle with added compliance expenses.
If companies pay the tax instead of recipients, they may reduce settlement offers to offset the cost. This effectively lowers compensation for people harmed.
With no official summary available, the specific details of what constitutes a 'specified settlement fund' remain unclear, creating uncertainty for affected parties.
Generated by AI from the bill text. Not a prediction and not legal or policy advice. The percentage is the model's own rating of each item — self-reported, and not a measure of how accurate it is.
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Individual contributions, grouped by employer · FEC
Where their individual donors work · 2026 cycle
Money from people who work there, not from the company. Not tied to this bill.
Itemized individual contributions via FEC, grouped by the employer each contributor self-reported. Companies and unions cannot contribute to federal candidates from their treasuries, so these totals are money from people who work at an employer — never from the organization itself. They are campaign contributions covering a full election cycle and are not connected to this bill.
Senate LDA lobbying disclosures
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