Washington D.C. – March 25 – The SmarterSafer Coalition submitted the following letter for the record to the House Committee on Ways and Means in support of H.R. 5366, the Federal Disaster Tax Relief Act of 2025, later renamed the “Doug LaMalfa Federal Disaster Tax Relief Certainty Act” in honor of the late Rep. LaMalfa.
Dear Chairman Smith and Ranking Member Neal:
SmarterSafer is a national coalition made up of a diverse chorus of voices who champion environmentally responsible and fiscally sound approaches to natural catastrophe mitigation and the promotion of public safety. On behalf of the Coalition, we write to express our support for H.R. 5366, the Federal Disaster Tax Relief Act of 2025, which is scheduled for markup before the Committee on Ways and Means.
This legislation provides important, commonsense tax relief for individuals and families recovering from major disasters. By codifying and extending rules for personal casualty losses and clarifying the tax treatment of compensation related to wildfire damages, the bill offers greater certainty and fairness for disaster survivors at a time when they need it most.
Recent years have underscored the growing frequency and severity of natural disasters across the country. The devastating 2025 Los Angeles wildfires are a stark reminder of the scale of destruction communities now face and the long road to recovery that follows. For many households, navigating financial losses and rebuilding costs is overwhelming. Provisions in this bill, particularly those ensuring that certain wildfire-related compensation is not treated as taxable income, will help ease that burden and allow families to focus on recovery rather than unexpected tax liabilities.
At the same time, as Congress considers policies to support recovery, it is equally important to emphasize the value of pre-disaster mitigation and resilience. Investments in mitigation, such as strengthening infrastructure, improving land use planning, and reducing wildfire risk, have consistently been shown to save lives and reduce long term federal costs. Every dollar spent on mitigation can significantly reduce future disaster losses and lessen the need for post-disaster assistance and tax relief.
H.R. 5366 represents a meaningful step in supporting Americans after disasters occur. We encourage the Committee to continue pairing these recovery-focused policies with forward-looking measures that promote resilience and risk reduction. Doing so will better protect communities, taxpayers, and the federal budget over the long term.
We appreciate your leadership in advancing this legislation and stand ready to work with you on policies that strengthen disaster preparedness, mitigation, and recovery nationwide.
Sincerely,
The SmarterSafer Coalition
cc:
The Honorable Greg Steube
The Honorable Mike Thompson
The Honorable Doug LaMalfa
The Honorable Jimmy Panetta