Bill > HR2670

This bill proposes to exempt regular military compensation from federal income taxes, effectively providing a tax break for active-duty service members. Specifically, the FIGHTER Act of 2025 would modify the Internal Revenue Code to exclude "regular compensation" received by members of the Armed Forces from gross income taxation. The bill defines "active service" using existing definitions from Title 37 of the United States Code and includes an important exception: any compensation would not be tax-exempt for individuals who have served as a Member of Congress during the preceding 10 years. To ensure fiscal responsibility, the bill also requires the newly created Department of Government Efficiency (DOGE) to implement cost-saving initiatives that offset the potential revenue loss from this tax exemption. The tax exemption would take effect for taxable years beginning after December 31, 2024, meaning service members would first see this benefit on their 2025 tax returns. The bill aims to provide financial relief and recognition for military personnel by reducing their tax burden and acknowledging their service to the nation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2670/all-info