Bill > S878

This bill extends the Combat-Injured Veterans Tax Fairness Act of 2016 to specifically cover members of the Coast Guard when they are not operating as part of the Department of the Navy. The legislation requires the Secretary of Homeland Security and the Secretary of Transportation to identify and restore severance payments that were improperly withheld for tax purposes from Coast Guard veterans with combat-related injuries. The bill mandates that these agencies must complete the identification of improperly withheld amounts and report on them within one year of the act's enactment. Additionally, the Secretary of Homeland Security must ensure that such improper tax withholdings do not occur going forward. This addresses a gap in the original 2016 law by explicitly including Coast Guard members who were previously not covered, ensuring that these veterans receive fair treatment regarding their severance payments and tax obligations, regardless of which federal department the Coast Guard is currently operating under.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/878/all-info