Rep. Chu Commends Passage of Federal Disaster Tax Relief Act of 2025

WASHINGTON, D.C. - Yesterday, the House passed H.R. 5366, the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. This bill would ensure that survivors of the Eaton Fire can receive their settlements from Southern California Edison tax free, regardless of when those payments are received.

Rep. Judy Chu (CA-28), a member of the House Ways and Means Committee, which has jurisdiction over tax policy, released the following statement:

"Yesterday's passage of the Federal Disaster Tax Relief Certainty Act is a major victory for natural disaster survivors nationwide, and especially for survivors of the Eaton Fire in my district," said Rep. Chu. "Survivors deserve the full amount of their settlements so they can rebuild their homes, restore their lives, and recover from the devastation they have endured.

The Federal Disaster Tax Relief Certainty Act of 2025 would extend the exemption for qualified wildfire relief payments to be excluded from gross income, thereby ensuring that survivors in my district and across the nation can receive the entirety of their settlements tax free. The previous exemption expired on December 31, 2025, creating uncertainty for families already navigating unimaginable loss.

While this is a significant step forward, there is more work to be done. More than a year after the Los Angeles Fires, over 70% of survivors still have not returned to their homes. Most have faced net losses exceeding $100,000, and many have exhausted their savings, gone into debt, or delayed medically necessary care. The number one roadblock to full recovery is a lack of capital.

That is why President Trump must immediately fulfill Governor Newsom's disaster supplemental funding request - with no strings attached. But, in the interim, I've introduced H.R. 6842, the Disaster Survivors Tax Relief and Recovery Act, to codify the tax provisions included in Governor Newsom's supplemental request and address the full scope of the financial challenges survivors are facing as they rebuild.

Yesterday's House passage is a significant success. Now, the Senate must immediately pass this bill and President Trump must sign it into law. I will also continue calling on President Trump to fully deliver Governor Newsom's disaster supplemental request. Without that support, recovery will be slower, more expensive, and further out of reach for families already struggling to put their lives back together. Natural disasters do not discriminate-and neither should our response."

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