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119-s-878119th CongressWALLET

Coast Guard Combat-Injured Tax Fairness Act

Sponsored By: Senator Cassidy, Bill [R-LA]

Introduced

Summary

Restoring withheld tax refunds for combat-injured Coast Guard veterans would be the bill's core goal. It would extend the Combat-Injured Veterans Tax Fairness Act of 2016 to cover Coast Guard service across departmental statuses and set departmental responsibilities and deadlines for implementation.

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  • Coast Guard veterans with combat-related injuries would be eligible to have amounts improperly withheld from severance payments corrected and refunded under the Act's rules.
  • Veterans who served while the Coast Guard operated under the Department of Transportation would be explicitly covered, ensuring those service periods get the same tax relief.
  • The bill would give the Secretary of Homeland Security and the Secretary of Transportation authority to carry out the Act as applicable and would require DHS and DOT to implement certain changes within 1 year, with DHS beginning implementation upon enactment; the Secretary of Defense would remain responsible when the Coast Guard operates under Navy control.

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Bill Overview

Analyzed Economic Effects

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

Less tax withheld on Coast Guard severance

This bill would help Coast Guard members and veterans with combat-related severance payments. It would stop improper federal tax withholding and help restore refunds. The bill would apply when the Coast Guard is not under the Navy and would also cover times it served under the Department of Transportation. It would assign responsibilities to the Secretary of Homeland Security or the Secretary of Transportation, as applicable, instead of a generic "the Secretary." DHS must begin certain actions on the date of enactment. DHS and DOT must finish required actions within one year after enactment. If enacted, this could stop wrong withholding and keep more money in affected households.

Sponsors & CoSponsors

Sponsor

Cassidy, Bill [R-LA]

LA • R

Cosponsors

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 3/6/2025

Roll Call Votes

No roll call votes available for this bill.

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