The FIGHTER Act of 2025 exempts active members of the Armed Forces from paying income tax on their regular compensation, excluding those who recently served in Congress, and offsets revenue loss through cost-saving measures in the United States DOGE Service.
Sheri Biggs
Representative
SC-3
The FIGHTER Act of 2025 excludes the regular compensation of active duty members of the Armed Forces from gross income for tax purposes, excluding those who served in Congress within the last 10 years. The Department of the Treasury will adjust withholding procedures to accommodate this change, which takes effect for taxable years after 2024. The Act also mandates cost-saving measures within the United States DOGE Service to offset any resulting reduction in federal revenue.
FIGHTER Act Proposes Tax-Free Regular Pay for Active Military Starting 2025
The Fortifying Income by Giving our Heroes Their Earned-Tax Relief (FIGHTER) Act of 2025 aims to make regular compensation received by active members of the U.S. Armed Forces exempt from federal gross income tax. This change, outlined in Section 2, would apply to taxable years beginning after December 31, 2024. Put simply, if this passes, the regular paycheck for most soldiers, sailors, airmen, marines, and guardians wouldn't be subject to federal income tax. The Treasury Department is directed to adjust tax withholding rules accordingly.
Paychecks Unburdened: Who Gets the Break?
The core of this bill is a significant tax cut for currently serving military personnel. It covers what's defined as "regular compensation" under title 37, section 101 of the U.S. Code. Think base pay and potentially other standard elements of military compensation, though the exact scope of "regular compensation" might need clarification. This could mean more take-home pay for service members and their families. However, there's a specific carve-out: anyone who served as a Member of Congress within the last 10 years before receiving military pay doesn't qualify for this tax exclusion.
Paying the Piper: Offsetting the Cost
Tax cuts aren't free, and Section 3 addresses this. The bill mandates unspecified "cost-saving initiatives" within the United States DOGE Service (yes, you read that right) to make up for the expected decrease in federal tax revenue. The bill doesn't detail what these savings entail. This vagueness raises questions: Will it mean budget cuts, staffing reductions, or changes in service delivery for whatever the DOGE Service does? The effectiveness and impact of these mandatory savings are unclear, leaving potential consequences for that agency's operations and employees up in the air.