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HR8917119th CongressWALLET

No Tax on Border Patrol Agent Overtime Act

Sponsored By: Representative Arrington, Jodey C. [R-TX-19]

Introduced

Summary

Treat certain Border Patrol overtime and premium pay as 'qualified overtime compensation' for tax purposes. This bill would change the Internal Revenue Code to redefine "qualified overtime compensation" for section 225(c)(1). It creates two exclusive categories: overtime covered by section 7 of the Fair Labor Standards Act and amounts paid to Border Patrol agents as defined in 5 U.S.C. 5550(a) that exceed basic pay calculated without regard to section 5550. The Border Patrol category explicitly includes supplemental pay under 5550(b)(2) and 5550(b)(3), premium pay under 5550(c)(1), and overtime under 5 U.S.C. 5542(g). Hazardous duty pay under 5550(c)(3) is excluded. The rule would apply to 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.

Lower taxes on overtime pay

If enacted, this bill would let certain overtime pay count as "qualified overtime compensation" for tax rules. It would include overtime under section 7 of the Fair Labor Standards Act that is above the worker's regular rate. It would also include certain Border Patrol pay above basic pay if 5 U.S.C. 5550 were ignored, including supplemental pay under 5 U.S.C. 5550(b)(2) and 5550(b)(3), premium pay under 5 U.S.C. 5550(c)(1), and overtime under 5 U.S.C. 5542(g). Hazardous duty pay under 5 U.S.C. 5550(c)(3) would remain excluded. The change would apply to taxable years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Arrington, Jodey C. [R-TX-19]

TX • R

Cosponsors

  • Rep. Buchanan, Vern [R-FL-16]

    FL • R

    Sponsored 5/20/2026

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 5/20/2026

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 5/20/2026

  • Rep. Gosar, Paul A. [R-AZ-9]

    AZ • R

    Sponsored 10/6/2026

Roll Call Votes

No roll call votes available for this bill.

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