Ways and Means advances LaMalfa disaster tax bill to protect disaster recoveries from taxation

The House Ways and Means Committee advanced H.R. 5366, the Federal Disaster Tax Relief Act of 2025, renamed in honor of the late Representative Doug LaMalfa, by a unanimous recorded vote.

Representative Steube, one of the bill's sponsors, said the measure would extend tax certainty for homeowners and wildfire victims and prevent settlement proceeds tied to disasters from becoming taxable events. A floor video and remarks from Representative Doug LaMalfa (delivered for the record or played for members) emphasized the devastation caused by wildfires and the need to prevent additional financial harm to survivors.

Tom Bartold, Joint Committee technical staff, summarized the chairman's amendment in the nature of a substitute and explained key changes to casualty loss and wildfire relief provisions. He said the Joint Committee staff estimated that the revenue effect of the proposals would be a loss of "$408 million in federal receipts over the fiscal year periods 2026 through 2036." Members from both parties spoke about long recovery timelines for disaster victims and urged swift House consideration.

The committee adopted the amendment in the nature of a substitute and voted to report the bill favorably by recorded vote (43–0). Supporters said the bill seeks to make disaster tax relief predictable and forward‑looking so survivors do not have to return to Congress repeatedly for relief.

The bill was ordered favorably reported to the House, with staff authorized to make technical conforming changes and members given two days to submit supplemental or dissenting views.