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Senate Passes Disaster Tax Relief, Cuts $408 M Revenue

8/11/2026

Summary

Story summary

Senate approved the Doug LaMalfa Disaster Tax Relief Act on Aug. 7 and transmitted it to President Donald Trump.
The act eliminates the 10 % income-damage threshold for claims dated Dec. 28 2019 through July 4 2025.
It makes wildfire-relief payments untaxable and aids victims of the 2025 California fires that destroyed 13,000 homes and caused $28-$53.8 billion damage.
The Congressional Budget Office estimates the law will cut federal revenue by $408 million between 2026 and 2036.

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Story summary

Senate approved the Doug LaMalfa Disaster Tax Relief Act on Aug. 7 and transmitted it to President Donald Trump.
The act eliminates the 10 % income-damage threshold for claims dated Dec. 28 2019 through July 4 2025.
It makes wildfire-relief payments untaxable and aids victims of the 2025 California fires that destroyed 13,000 homes and caused $28-$53.8 billion damage.
The Congressional Budget Office estimates the law will cut federal revenue by $408 million between 2026 and 2036.