119-hr-2670119th CongressWALLET

FIGHTER Act of 2025

Sponsored By: Representative Biggs, Sheri [R-SC-3]

Introduced

Summary

Makes regular active-duty military pay tax-free. The bill would exclude regular compensation for active service from gross income, require Treasury to update withholding rules, and take effect for tax years after 2024.

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  • Active-duty service members: Most would have their regular compensation excluded from taxable income, and payroll withholding tables would be adjusted to reflect the exclusion.
  • Recent Members of Congress: Anyone who served as a Senator, Representative, Delegate, or Resident Commissioner within the 10 years before receiving the pay would not qualify for the exclusion.
  • Federal budget and agencies: The bill would direct the Department of Government Efficiency to implement spending cuts that reduce federal expenditures by at least the amount of revenue lost from the exclusion.

*Would aim to be budget-neutral by requiring spending reductions equal to the revenue loss.*

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Bill Overview

Analyzed Economic Effects

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

Lower taxes on active-duty pay

If enacted, regular military pay you earn while on active duty would not count as federal taxable income. This would start for tax years beginning after Dec. 31, 2024. The exclusion would not apply if you served in Congress at any time in the past 10 years. Treasury would update paycheck withholding so less tax may be taken out during the year.

Federal agency must offset tax loss

If enacted, the Department of Government Efficiency would have to cut federal spending by at least the tax revenue lost from the military pay exclusion. The bill does not name which programs to cut. Depending on the choices, some services could be reduced, or deficits could fall.

Sponsors & CoSponsors

Sponsor

Biggs, Sheri [R-SC-3]

SC • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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