Schneider, Arrington, Sewell, Steel Introduce Bipartisan, Bicameral Bill to Aid Human Trafficking Survivors
WASHINGTON — On Friday, U.S. Representatives Brad Schneider (IL-10), Jodey Arrington (TX-19), Terri Sewell (AL-7) and Michelle Steel (CA-48)—all members of the House Committee on Ways and Means—introduced bipartisan legislation to exempt restitution payments to victims of human trafficking from federal income tax.
Under current law, only criminal restitution payments to victims of human trafficking are exempt from federal income tax. H.R. 6226, the Human Trafficking Survivor Tax Relief Act, would expand this provision to make civil damages, restitution, and any other monetary award given to human trafficking survivors exempt from federal income taxes. Senators John Cornyn (R-TX), Ron Wyden (D-OR), James Lankford (R-OK), and Kyrsten Sinema (I-AZ) introduced the bipartisan Senate companion legislation.
“As survivors of human trafficking work to reclaim their lives, it’s crucial we support their recovery with compassion,” said Rep. Schneider. “The Human Trafficking Survivor Tax Relief Act would eliminate federal income tax on restitution payments to human trafficking survivors, ending the discrepancy that treats criminal and civil payments to trafficking survivors differently. With bipartisan and bicameral support, I proudly introduce this legislation and look forward to swiftly correcting this discrepancy to support survivors in their recovery journey.”
"There is no amount of compensation that can remedy the many horrors that victims of human trafficking have to endure. As we work to eradicate this heinous crime, we should ensure these victims aren't burdened with tax penalties and reporting requirements when they receive civil damages or restitution. The bipartisan Human Trafficking Survivor Tax Relief Act will solve this injustice and help survivors of modern-day slavery rebuild their lives," said Rep. Arrington. "I am proud to work with my colleagues from both sides of the aisle, and fellow Texan, Senator John Cornyn, in introducing this important legislation."
“Survivors of human trafficking should not be forced to pay income taxes on their restitution payments, regardless of whether those payments are civil or criminal in nature,” said Rep. Sewell. “Congress must do its part to correct this injustice and support survivors. I’m proud to be co-leading this commonsense, bipartisan legislation and urge my colleagues to give it their full support.”
“After the horrors they have endured, the least we can do is to provide the tax relief needed to assist human trafficking survivors in their recovery,” said Rep. Steel. “I am grateful to Rep. Schneider for leading this bipartisan legislation to correct the tax code and provide meaningful assistance to those who need it most.”
The full text of the legislation is available online here.
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