Prevent Presidential Profiteering Act

119 HR 7381 IH: Prevent Presidential Profiteering Act U.S. House of Representatives 2026-02-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 2d Session H. R. 7381 IN THE HOUSE OF REPRESENTATIVES February 4, 2026 Mr. Thompson of California (for himself, Mr. Doggett , Mr. Larson of Connecticut , Mr. Davis of Illinois , Ms. Chu , Ms. DelBene , Ms. Moore of Wisconsin , Mr. Boyle of Pennsylvania , Mr. Panetta , Mr. Gomez , Mr. Horsford , Ms. Sánchez , Mr. Evans of Pennsylvania , and Mr. Schneider ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to impose a tax on damages received by the President of the United States on account of any civil action filed against the United States, and for other purposes. 1. Short title This Act may be cited as the Prevent Presidential Profiteering Act . 2. Imposition of tax on damages received by the President of the United States on account of civil action filed against the United States (a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 50B Certain civil damages of the President of the United States Sec. 5000E. Imposition of tax on damages received on account of civil action filed against the United States. 5000E. Imposition of tax on damages received on account of civil action filed against the United States (a) In general There is hereby imposed on each covered person for any taxable year a tax equal to 100 percent of the qualified civil action amount received by such person during such taxable year. (b) Covered person For purposes of this section— (1) In general The term covered person means— (A) any individual who has served as President of the United States, (B) any member of the family of such individual, and (C) any person controlled (based on principles similar to the principles which apply for purposes of section 52(b)) by one or more individuals described in subparagraph (A) or (B). (2) Member of the family The term member of the family means, with respect to any individual described in paragraph (1)(A)— (A) the spouse of such individual, and (B) any individual who bears a relationship to such individual which is described in subparagraphs (A) through (G) of section 152(d)(2). (c) Qualified civil action amount For purposes of this section— (1) In general The term qualified civil action amount means, with respect to any covered person during any taxable year, the aggregate amount of damages received by such person during such taxable year (whether by settlement, verdict, judgment, or otherwise) on account of any civil action— (A) filed by such person against the United States (or any agency or instrumentality thereof), and (B) with respect to which the filing or settlement of, or issuance of a verdict or judgment for, occurred during the applicable period. (2) Applicable period The term applicable period means, with respect to any covered person, the period of time— (A) beginning with the date on which the individual described in subsection (b)(1)(A) began serving as President of the United States, and (B) ending with the date on which such individual ceased to serve as President of the United States. (d) Special rules (1) Administrative provisions For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A. (2) Exclusion from gross income For purposes of chapter 1, the gross income of any covered person for any taxable year shall not include any qualified civil action amount received by such person during such taxable year. . (b) No deduction from income tax Section 275(a)(6) of the Internal Revenue Code of 1986 is amended by inserting 50B, after 50A, . (c) Clerical amendment The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by inserting after the item relating to chapter 50A the following new item: Chapter 50B— Certain civil damages of the President of the United States . (d) Effective date The amendments made by this section shall apply with respect to amounts received after the date of the enactment of this Act.