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119-hr-4184119th CongressWALLET

To amend the Internal Revenue Code of 1986 to exclude from gross income certain compensation to clinical trial participants, and for other purposes.

Sponsored By: Representative Kelly, Mike [R-PA-16]

Introduced

Summary

Would make payments tied to participating in approved clinical trials tax-free and excluded from benefit calculations. It would exclude compensation and reasonable expense reimbursements from gross income and bar counting those payments when determining eligibility for federal or federally funded state and local programs.

Show full summary
  • Participants and families would not have to report qualified clinical trial compensation or reimbursements as taxable income under the Internal Revenue Code.
  • Those payments would not be taken into account as income or resources when determining eligibility for any federal program or for state or local programs financed in whole or in part with federal funds.
  • The exclusion would apply to “approved clinical trials” using the Public Health Service Act definition and to dependents as defined in tax code section 152. It would apply to amounts paid after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

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

No income tax on clinical trial pay

If enacted, you would not owe income tax on money you get for being in an approved clinical trial. This would also cover pay tied to a dependent’s trial participation. Reimbursements for reasonable and necessary trial costs would be excluded too. The rule would apply to amounts paid after December 31, 2025.

Clinical trial pay wouldn’t cut benefits

If enacted, clinical trial payments would not count as income or resources when agencies check eligibility. Programs like SNAP, Medicaid, and other federally funded state or local benefits would ignore these amounts. This only applies to approved clinical trial payments, including reasonable, necessary expense reimbursements.

Sponsors & CoSponsors

Sponsor

Kelly, Mike [R-PA-16]

PA • R

Cosponsors

  • Rep. Houlahan, Chrissy [D-PA-6]

    PA • D

    Sponsored 6/26/2025

Roll Call Votes

No roll call votes available for this bill.

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