Disaster Tax Relief Bill Co-Led by Rep. Panetta Signed Into Law

Washington, D.C. – United States Representatives Jimmy Panetta (CA-19), Greg Steube (FL-17), and Mike Thompson (CA-04) announced that the Doug LaMalfa Federal Disaster Tax Relief Certainty Act was signed into law. The legislation will extend current law to deliver critical tax relief to Americans impacted by federally declared natural disasters.

Under this legislation, victims will more easily be able to deduct qualified casualty losses for federally declared disasters between July 4, 2025, and December 31, 2026. It also ensures certain disaster relief payments are not treated as taxable income. These provisions will ensure disaster victims are not penalized by the tax code as they recover from catastrophic events.

“The last thing families and communities recovering from natural disasters should have to worry about is an additional tax burden when they’re trying to get back on their feet,” said Rep. Panetta. “I’m proud that our bipartisan legislation has been signed into law to ensure that wildfire relief payments and hurricane losses continue to qualify for fair tax treatment. This new law will provide disaster-impacted Americans with the certainty, time, and tools they need to rebuild and move forward.”

“This delivers long-overdue certainty to Americans rebuilding after natural disasters. Disaster victims should be focused on rebuilding their homes, businesses, and communities, not worrying about an unexpected tax burden on the assistance they receive,” said Rep. Steube. “I’m grateful to President Trump for signing this important legislation into law and ensuring families across the country receive the relief they deserve. Congressman LaMalfa worked tirelessly to get this legislation across the finish line, and it is fitting that his legacy of service will live on for years to come.”

“Californians are all too familiar with the devastation caused by wildfires. In the wake of losing their homes and livelihoods, it is wrong to tax survivors on settlement money that is meant to help them rebuild their lives,” said Rep. Thompson. “Survivors can’t afford to wait around for retroactive tax relief. I’m proud to have worked with Rep. Steube to pass this law extending the original tax relief Doug fought with us to achieve. Now, we have expanded this critical relief so even more survivors can be compensated.”

The legislation was led in the Senate by Senators Adam Schiff (D-CA) and Rick Scott (R-FL). The legislation was originally introduced as the Federal Disaster Tax Relief Act of 2025, but was later renamed to the Doug LaMalfa Federal Disaster Tax Relief Certainty Act to honor Rep. Doug LaMalfa, who passed away in January of 2026. 

“Surviving a natural disaster can place an enormous financial burden on families. It is critical that we support victims of devastating disasters like the wildfires in California and across the country. That’s why I was proud to team up with Senator Rick Scott and Representatives Greg Steube, Mike Thompson and Jimmy Panetta to provide tax relief to the victims of natural disasters and why I am so grateful to see our bipartisan bill signed into law. We must ensure that those hit the hardest when disaster strikes receive the support and the tax relief they need to recover. And in seeing our bill become law, we affirm a vital part of the late Doug LaMalfa’s legacy,” said Sen. Schiff. 

“After disaster strikes, impacted Americans should be focused on rebuilding their lives and their communities – not surprise changes to their tax bills. After speaking with so many Americans in Florida and across the country impacted by natural disasters, including meeting Spencer Pratt at his burned-down home and touring the aftermath of the Palisades Fire, I knew we had to do something. Now that President Trump has signed this bill into law, I’m grateful to have worked with Spencer, Rep. Steube, and Sen. Schiff to ensure those affected by hurricanes, wildfires, and other natural disasters continue to receive the real tax relief – and the peace of mind – they deserve,” said Sen. Scott. 

The Federal Disaster Tax Relief Act of 2023 previously delivered billions in tax relief to Americans recovering from hurricanes, floods, wildfires, tornadoes, and other federally declared disasters. The Doug LaMalfa Federal Disaster Tax Relief Certainty Act builds on that effort by extending these provisions so disaster victims can continue to access relief under the tax code.

###