H.R. 5898: Lejeune Untaxed Compensation and Settlements Act of 2025

This bill, known as the Lejeune Untaxed Compensation and Settlements Act of 2025, aims to modify the Internal Revenue Code. Specifically, it seeks to exempt certain types of damages from being counted as gross income for tax purposes. Here is a breakdown of the main components of the bill:

Exemption of Damages

The bill primarily focuses on damages awarded in legal actions related to the Camp Lejeune Justice Act of 2022. Under the proposed changes:

• Amounts received as damages from lawsuits filed under the Camp Lejeune Justice Act will not be considered gross income.

This means that individuals who receive such damages will not have to pay federal income tax on those amounts. This exemption will be implemented for damages that are received after the bill is enacted.

Amendments to the Internal Revenue Code

The bill amends Section 104(a) of the Internal Revenue Code of 1986. The changes include:

• Adding a new paragraph that specifies the exclusion of damages received under the Camp Lejeune Justice Act.
• Updating the numbering of the paragraphs in the section to accommodate the new addition.

Effective Date

The changes proposed in this bill will take effect for any damages awarded after the bill becomes law, meaning it will not apply retroactively to damages awarded before its enactment.

Overall Impact

The intent of the bill is to alleviate the financial burden for those who have suffered harm and received compensation as a result of the lawsuits pertaining to the Camp Lejeune toxicity issues, specifically regarding water contamination at the military base.

Relevant Companies

None found