FIGHTER Act of 2025

This Act may be cited as the “Fortifying Income by Giving our Heroes Their Earned-Tax Relief Act of 2025” or the “FIGHTER Act of 2025”.

(a) In general.— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:

“139J. Regular compensation received by members of the Armed Forces.—

(a) In general.— Gross income shall not include regular compensation received by an individual for active service as a member of the Armed Forces.

(b) Exception.— This section shall not apply to any compensation if the individual receiving such compensation served as a Member of Congress at any time during the 10-year period ending on the date that such individual received such compensation.

(c) Definitions.— For purposes of this section—

(1) Active service.— The term “active service” has the meaning given that term under section 101 of title 37, United States Code.

(2) Member of Congress.— The term “Member of Congress” means a Senator or Representative in, or Delegate or Resident Commissioner to, the Congress.

(3) Regular compensation.— The term “regular compensation” has the meaning given that term under section 101 of title 37, United States Code.

(d) Regulations.— The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.”.

(b) Withholding.— The Secretary of the Treasury (or the Secretary’s delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account amounts excludable from gross income under section 139J of such Code (as added by this Act).

(c) Clerical amendment.— The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:

(d) Effective date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

The United States DOGE Service (commonly referred to as the “Department of Government Efficiency” or “DOGE”) shall implement cost-saving initiatives that reduce Federal expenditures by an amount that is at least equal to the reduction in Federal revenues that occurs by reason of the amendments made by section 2.