Lejeune Untaxed Compensation and Settlements Act of 2025

HR 5898, the Lejeune Untaxed Compensation and Settlements Act of 2025, ensures that compensation received under the Camp Lejeune Justice Act of 2022 is not subject to federal income tax. It directly affects individuals who filed lawsuits related to water contamination at Camp Lejeune, excluding their settlement amounts from taxable income. The bill amends the Internal Revenue Code to add a specific exclusion for these damages under Section 104(a). This change applies to settlements received after the bill’s enactment, providing tax relief for affected victims.