Human Trafficking Survivor Tax Relief Act

Sponsor: John Cornyn (Republican-TX)November 20, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Lets human trafficking survivors keep all of their court-ordered payments without paying federal taxes.

This bill would let human trafficking survivors keep all the money they receive from court-ordered payments or civil lawsuits without paying federal income tax on it. Currently, these payments can be taxed as income. If passed, this change would apply to payments received in tax years starting after the bill becomes law.

What Would Change

Currently, money received by human trafficking survivors as restitution or civil damages might be taxed as part of their income. If this bill becomes law, these specific payments would be excluded from federal income tax, allowing survivors to keep the full amount.

Key Provisions

Would make sure that money survivors of human trafficking receive from court orders or civil lawsuits is not counted as taxable income.
Would add a new section to the federal tax code to clearly state this tax exemption.
Would apply these new tax rules to tax years starting after the bill becomes law.

View on Congress.gov

S 3261 · 119th Congress · November 20, 2025 · AI Summary by gemini-2.5-flash · 9/10

Human Trafficking Survivor Tax Relief Act

What Would Change

Key Provisions

Lobbying Activity