# 119-hr-7577: TIP Improvement Act of 2026

119-hr-7577, TIP Improvement Act of 2026, is a 119th Congress bill sponsored by Rep. Horsford, Steven [D-NV-4] (D-NV); status introduced; PRIA reads it as touching household money (as of 2026-10-15).

- Canonical: https://policyrisk.com/legislation/119-hr-7577
- As of: 2026-10-15
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7577
- Congress: 119
- Title: TIP Improvement Act of 2026
- Status: introduced
- Introduced: 2026-02-13
- Sponsor: Rep. Horsford, Steven [D-NV-4] (D-NV)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-10-15

## Summary

**Binds tipped wages to the standard minimum wage.** This bill would also make permanent and expand a tax deduction for tipped income while adding identification and anti-abuse rules. - Workers: Tipped employees would receive a cash wage equal to the non-tipped minimum under the Fair Labor Standards Act and could still pool tips with coworkers who customarily and regularly receive them. - Employers: Employer liability for mishandled tips would grow because penalties would require payment of the full sum of tips unlawfully used or kept. - Tax filers and businesses: The qualified tip deduction would become permanent, retain a $25,000 cap ($50,000 for joint returns), add automatic gratuities for hospitality, food and beverage, and cosmetology workers, require Taxpayer Identification Numbers, bar deductions when tips are paid by certain related parties or when the recipient lacks an ownership stake, and apply to taxable years starting after Dec. 31, 2025.

## Cosponsors (1)

- Rep. Scholten, Hillary J. [D-MI-3] (D-MI), 2026-10-13T00:00:00.000Z

## Provisions PRIA read

- Higher pay and tip protections for workers: benefit, high. If enacted, tipped employees would be paid at least the regular federal minimum wage. You would keep all tips you receive, except employers could allow tip pooling only among workers who customarily and regularly receive tips. The bill would also require employers to pay the full amount of any tips…
- Expanded tip tax deduction for workers: mixed, high. If enacted, you would be able to claim a qualified-tip deduction up to $25,000 a year if you file single. Married couples filing jointly would be able to claim up to $50,000. The deduction would be denied if the tip payer does not have the relationship listed in section 267(b) or if you own a stake…

## Related bills

- 119-hr-6900: American Affordability Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-7853: PrEP Access and Coverage Act of 2026

## Sources
- [119-hr-7577 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7577)

## Related
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-7853: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-hr-7853)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7577 (as of 2026-10-15).