THOMPSON, STEUBE’S BIPARTISAN DISASTER TAX RELIEF BILL PASSES U.S. HOUSE OF REPRESENTATIVES

Washington - Today, Rep. Mike Thompson (D-CA) and Rep. Greg Steube's (R-FL) Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) passed the U.S. House of Representatives by a voice vote. This bill extends Thompson and Steube's landmark 2024 law providing tax relief for individuals impacted by federally declared disasters. The bill will permit victims to claim disaster-related personal casualty losses without having to itemize deductions through January 1, 2027.

"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. Survivors can't afford to wait around for retroactive relief," said Rep. Thompson. "Our late colleague Doug LaMalfa knew this well. I was proud to work with him to pass tax relief for fire victims in our communities in 2024, and I am proud we passed this bill now to honor his work and to extend our tax relief so more victims can be compensated."

"Floridians are far too familiar with the devastation and costly aftermath that natural disasters bring to their homes and communities," said Rep. Steube. "They should not be forced to face additional hardship and uncertainty by navigating a confusing and burdensome tax code after surviving such events. This bill ensures that disaster victims across the country can focus on rebuilding their lives while receiving the relief they deserve. Congressman LaMalfa spent years leading on this issue, and naming this legislation in his honor is a meaningful way to carry that important work forward."

BACKGROUND

Rep. Thompson serves as the Ranking Member of the Subcommittee on Tax for the Ways and Means Committee. He introduced the original legislation with Rep. Doug LaMalfa in the House of Representatives to provide tax relief to PG&E fire victims in the 117th Congress and worked with Senator Padilla and Rep. LaMalfa to advance the legislation.

In 2024, Rep. Thompson and Rep. Steube led a bipartisan group of 218 Members of Congress to successfully advance a discharge petition which forced House Speaker Mike Johnson to bring the Federal Disaster Tax Relief Act of 2023 to the House floor for a vote. The historic advancement of Rep. Thompson and Rep. Steube's petition marked only the third time a House discharge petition had succeeded in the 21st Century. The bill passed the Senate by unanimous consent and was signed into law by President Biden in December of 2024.

H.R. 5366, originally introduced as the Federal Disaster Tax Relief Act of 2025 and later renamed in honor of Congressman Doug LaMalfa, builds upon Rep. Thompson's landmark law by codifying and extending disaster tax relief provisions through January 1, 2027. The bill allows individuals to deduct disaster-related losses more easily, including for those who do not itemize, and ensures wildfire relief payments are not treated as taxable income. Read the full bill text here.