LaMalfa, Thompson statement on exclusion of H.R. 7305 in government funding legislation

Congressmen Doug LaMalfa and Mike Thompson responded to the exclusion of their bill, H.R. 7305, from the FY2023 omnibus funding package. Due to an impasse in the United States Senate, all tax provisions – including H.R. 7305 – and disaster relief provisions were excluded from the government funding package.

Congressmen LaMalfa and Thompson introduced this legislation earlier this year to exempt thousands of fire victims who are receiving compensation from the Fire Victim Trust from having to pay federal income tax on their settlement money or attorney fees that are included in the settlement.

“It’s appalling that after all this time an agreement could not be made between the House and Senate to deliver wildfire survivors financial relief from abusive taxes,” LaMalfa said. “Congressman Thompson and I have led a bipartisan delegation, including our senators, to fight for Fire Victim Trust beneficiaries’ tax-exempt status. The removal of the tax package as a whole was a significant setback by the Senate. I will continue to fight for this bill and we will reintroduce it quickly in the new Congress. I expect there will be a new effort on disaster relief and other tax provisions that were not included. The IRS’s response has been frustrating and tone deaf. Fire victims need certainty and fairness, not to be double taxed. This tax relief will help in rebuilding their lives.”

“It is a sad day when a bipartisan bill that helps people and has broad support in both chambers of Congress can’t get through the Senate,” said Congressman Thompson. “This is terrible for fire survivors throughout California. There are several tax bills that must be considered next year, and I will continue to push that relief for fire survivors be included.”