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Sen. Wyden’s Wildfire Tax Relief Bill Passes Just Before Congress Recesses, Goes to White House

The measure would make disaster settlement payments tax-free and let survivors deduct uninsured losses, with retroactive relief for wildfire victims since 2016.

  • On Friday, the Senate passed the bipartisan Federal Disaster Tax Relief Act by unanimous consent, sending the legislation to President Donald Trump before Congress departed Washington for a five-week recess.
  • Oregon U.S. Sen. Ron Wyden backed the bill, which renews an expired 2024 law that allows disaster survivors to deduct uninsured property losses and makes settlement payments non-taxable.
  • This tax relief applies to survivors of wildfires since 2016 and was championed by victims of the 2020 Labor Day Fires, some of which were caused by Pacific Power electrical lines.
  • Texas Republican Sen. Ted Cruz attempted to stall the proposal through a procedural move, an effort Wyden, Democratic lawmakers, and wildfire survivors criticized on social media during the recess.
  • The act previously passed the House and now heads to the White House for President Trump's signature, restoring relief for survivors after the previous version expired in 2025.
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Sen. Wyden’s wildfire tax relief bill passes just before Congress recesses, goes to White House

The bipartisan Federal Disaster Tax Relief Act passed in the Senate by unanimous consent Friday before both chambers left Washington, D.C., for five weeks.

·Portland, United States
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Elkhorn Media Group broke the news on Monday, August 10, 2026.
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