H.R. 5366, the Federal Disaster Tax Relief Act of 2025, was signed by the President on September 11, 2026.
H.R. 5366 — Federal Disaster Tax Relief Act of 2025
What it does
This bill amends the tax code to allow individuals in federally declared disaster areas to deduct personal casualty losses from disasters (including wildfires) more generously than normal tax rules allow, and to exclude wildfire relief payments from taxable income. Specifically, it raises the threshold for deducting disaster losses from 10% of income to effectively 0% for 'qualified net disaster losses,' and it exempts compensation received for wildfire-related losses from being counted as income—benefiting disaster victims by reducing their tax burden.
Quorum's transparency scan gave Federal Disaster Tax Relief Act of 2025 a moderate transparency flag.
What happens next
H.R. 5366 was signed by the President. It is now law.
Who is behind it
Filed by W. Steube. Cosponsored by Byron Donalds, Dave Min, Doug LaMalfa and Eugene Vindman.
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