The Survivor Justice Tax Prevention Act (H.R. 2347) aims to change how certain legal settlements are taxed for survivors of sexual acts or sexual contact. Under current law, only damages related to physical injuries with visible harm are tax-exempt. This bill allows damages from sexual acts or contact to be excluded from taxable income, even if there are no visible injuries. It also shifts the burden of proof to the IRS to prove that such damages should be taxed, rather than the recipient having to prove they are tax-exempt. The IRS is also required to increase public awareness about this tax exclusion.
Supporters of the Survivor Justice Tax Prevention Act praise it for providing financial relief to survivors of sexual misconduct by ensuring that their compensatory damages are not taxed. Media outlets highlight that the bill acknowledges the non-visible impacts of sexual violence and aims to reduce the financial burden on survivors, which could encourage more individuals to come forward and seek justice.
Critics of the bill express concerns that it may complicate IRS processes by shifting the burden of proof onto the agency, potentially leading to increased litigation and administrative costs. Some media outlets also argue that the bill's focus on tax exclusions might not address the broader systemic issues faced by survivors of sexual violence.
Based on the available data, there appears to be a low risk of conflicts of interest between the sponsor's donors and the bill's subject matter. The sponsor, Lloyd Smucker, does not have any direct industry overlaps with the bill subjects, which reduces the potential for conflicts of interest. However, there has been significant lobbying activity in the bill's policy area. Notably, Verano Holdings LLC has spent $70,000 on lobbying, and the College of Healthcare Information Management Executives has spent $30,000. The Private Care Association Inc has also spent $10,000. The specific interests of these organizations in relation to the bill are not disclosed, but their financial involvement suggests they may have a stake in the bill's outcome. It's important for voters to be aware of these financial ties, even if they do not directly implicate the bill's sponsor.
Organizations that lobbied on issues related to this bill's policy area.
| Client | Lobbying Firm | Amount |
|---|---|---|
| AMERICAN RIVERS ACTION FUND | AMERICAN RIVERS ACTION FUND | $120,000 |
| VERANO HOLDINGS LLC | VERANO HOLDINGS LLC | $70,000 |
| COLLEGE OF HEALTHCARE INFORMATION MANAGEMENT EXECUTIVES | COLLEGE OF HEALTHCARE INFORMATION MANAGEMENT EXECUTIVES | $30,000 |
| WINDOW COVERING MANUFACTURERS ASSOCIATION | NORTHSTAR EK LLC | $30,000 |
| SHINE TECHNOLOGIES | NORTHSTAR EK LLC | $30,000 |
| PRIVATE CARE ASSOCIATION INC | HOLLRAH LLC | $10,000 |
| NATIONAL ASSOCIATION OF TELECOMMUNICATIONS OFFICERS AND ADVISORS | NATIONAL ASSOCIATION OF TELECOMMUNICATIONS OFFICERS AND ADVISORS | undisclosed |
| NATIONAL ASSOCIATION OF WORKFORCE BOARDS | NATIONAL ASSOCIATION OF WORKFORCE BOARDS | undisclosed |
| MYSTERY SHOPPING PROVIDERS ASSOCIATION, INC. | HOLLRAH LLC | undisclosed |
| COALITION TO PRESERVE INDEPENDENT CONTRACTOR STATUS | HOLLRAH LLC | undisclosed |
| TOBACCO-FREE KIDS ACTION FUND | SACHS MEDIA. INC. | undisclosed |
| NATIONAL GRANGE OF THE ORDER OF PATRONS OF HUSBANDRY | THE NATIONAL GRANGE OF THE ORDER OF PATRONS OF HUSBANDRY | undisclosed |
| SYENSQO USA LLC | RIDGELINE ADVOCACY GROUP LLC | undisclosed |
| PUEBLO OF JEMEZ | DENTONS US LLP | undisclosed |
| INVIVYD, INC. | KING & SPALDING LLP | undisclosed |
Source: Senate Lobbying Disclosure Act (LDA) filings, 2026