Disaster Relief Hidden in Tax Code: Quick Cash for Displaced Workers
H.R. 6645 — Working Families Disaster Tax Relief Act · Filed by Sara Jacobs (D-CA) · Introduced Dec 11, 2025 · Referred to committee
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What it does
This bill allows families affected by federally declared disasters to calculate their child tax credit and earned income tax credit using their income from the previous year instead of the current year. This helps disaster-affected workers whose income dropped due to the disaster—they can claim a larger tax credit based on their pre-disaster earnings, providing immediate financial relief during recovery.
Why we flagged it
The bill is a narrowly tailored tax-code amendment designed to provide temporary relief to workers and families whose income has been disrupted by federally declared disasters. It uses the existing tax-credit machinery to deliver aid.
What the text implies
- The provision applies retroactively to tax years beginning after December 31, 2024, meaning it could cover disasters that occurred in early 2025 and may require amended returns or advance claims.
- Eligibility depends on a presidential major-disaster declaration under the Stafford Act, which means some disaster-affected taxpayers in areas not formally declared may not qualify, creating potential equity gaps.
The full analysis lists 4 implications of this text.
Who stands to gain
working families with children; low-income workers eligible for earned income tax credit; disaster-displaced workers