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Floor Speech
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Mr. PADILLA. Mr. President, colleagues, this disaster bill, this disaster tax bill includes important bipartisan legislation that I introduced with Senators Lummis, Wyden, and Sheehy to extend a critical tax provision for disaster survivors that we enacted into law last Congress. Two years ago, my Protect Innocent Victims of Taxation After Fire Act made an important update to our Tax Code.
It made sure that individuals, families, and entire communities who suffered from wildfires received the full compensation that they were awarded in courts to rebuild their lives.
But, unfortunately, every year more devastating disasters take place, and so Congress must extend the same important financial protection to survivors of more recent wildfires.
That is what the House-passed version of the bill would do. But to be clear, disaster settlement funds are not income. They are not a financial windfall. They are certainly not winning the lottery. What they are is compensation, partial compensation in most cases, for what has been lost.
They are meant to give survivors an opportunity to begin to rebuild not just their homes but their lives.
This bill is not just for my constituents in California that have been impacted by the Eaton and Palisades fires 1\1/2\ years ago; it is also for those victims in Oregon and Hawaii and other communities across the country that have experienced similar disasters.
Our bill would ensure that all recent wildfire victims throughout the country have access to the full value of their settlement without any unfair tax burden. It is common sense, and it is a bipartisan solution to protect Americans at the most difficult time of their lives.
We should pass this legislation now. Let's not keep survivors waiting, worrying, and wondering about their financial future any longer.
I want to thank Senators Lummis, Wyden, and Sheehy for their partnership, as well as my colleague Representative Mike Thompson in the House for his steadfast leadership on this issue.
I also want to recognize that the late Representative Doug LaMalfa was such a critical part of this effort. The House fittingly named this bill in his honor because it reflects the tireless leadership he brought to these issues impacting disaster-stricken communities throughout his career. He and I first served together in the California State Senate and then again here--he in the House; I in the Senate.
I would urge all of our colleagues to support the House-passed version of the measure and allow survivors to begin to rebuild their lives without unnecessary fear or delay.
Thank you.
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