S3189119th CongressWALLET

SROS Act

Sponsored By: Senator Sen. Sheehy, Tim [R-MT]

Introduced

Summary

Excludes retirement income from federal taxable income for retired service members and retired law enforcement who serve as school resource officers. This bill would create a tax exclusion for retirement pay while those retirees work as SROs and add reporting and implementation rules.

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  • Retirees: Would let people who retired from the Armed Forces or from qualifying law enforcement jobs exclude pension, annuity, retirement account, and other retirement-plan payments from gross income for any year they work as a school resource officer. Eligibility also requires clearing any required background check and meeting the State peace officer standards and training requirements.
  • Long-serving SROs: Individuals who serve as SROs for at least 10 years would also receive a lifetime exclusion of retirement income for periods after their SRO employment ends.
  • Employers and administration: Heads of law enforcement agencies would have to report SRO start and end dates to the Secretary and face penalties for failing to file those notices. The Treasury would have to issue implementing guidance within 180 days and the change would apply to taxable years beginning after enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Lower taxes for retired SROs

If enacted, you would be able to exclude retirement pay from your taxable income while you work as a school resource officer (SRO). This applies if you retired from the U.S. Armed Forces or as a law enforcement officer, passed any required background checks, and meet State peace officer training rules. Retirement pay means pensions, annuities, distributions, and similar retirement payments tied to the prior service. If you serve as an SRO for at least 10 years, the bill would also let you exclude that retirement pay for life. The rule would apply for taxable years beginning after the date of enactment.

New SRO reporting and penalties

If enacted, the head of any law enforcement agency that employs an eligible SRO would have to tell the IRS when that person started and when that person stopped being an SRO. Those notices would follow the form and timing the IRS prescribes and would be subject to existing information-return penalties if not filed properly. The bill would also require the IRS to issue rules or guidance to implement the SRO exclusion and reporting within 180 days after enactment. These rules would apply for taxable years beginning after the date of enactment.

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Sponsors & CoSponsors

Sponsor

Sen. Sheehy, Tim [R-MT]

MT • R

Cosponsors

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 11/18/2025

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 11/18/2025

Roll Call Votes

No roll call votes available for this bill.

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