Public Safety Retirees Healthcare Protection Act of 2025
Sponsored By: Representative Bacon, Don [R-NE-2]
Introduced
Summary
Increases the tax-free amount public safety retirees can use from their government pensions to pay health and long-term care premiums. The bill would amend 26 U.S.C. §402(l)(2) to raise the annual exclusion for distributions used to pay health and long-term care insurance for public safety officers from $3,000 to $6,000. The change would apply to distributions in taxable years beginning after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher tax-free health premium limit for public safety retirees
This bill would raise the tax-free amount of governmental retirement plan payouts used to pay health and long-term care insurance premiums for public safety officers. The annual limit would increase from $3,000 to $6,000. It would apply to distributions in tax years that begin after December 31, 2025 (so starting in 2026). If you qualify, your tax savings would be your tax rate times the extra excluded amount, up to $3,000.
Sponsors & CoSponsors
Sponsor
Bacon, Don [R-NE-2]
NE • R
Cosponsors
Cuellar
TX • D
Sponsored 5/13/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 9/26/2025
Rep. Smith, Christopher H. [R-NJ-4]
NJ • R
Sponsored 11/20/2025
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 4/21/2026
Rep. Mackenzie, Ryan [R-PA-7]
PA • R
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov