hold on there's just too much going on in Congress lmao...
Exempts inactive-duty training pay from federal income tax.
Rep. Andy Barr (R-KY), with Reps. Miller and Nunn.
Introduced, referred to House Ways and Means Committee.
This bill adds inactive-duty training compensation (like drill pay for National Guard and Reserve members) to the list of tax-free qualified military benefits. It amends IRS Section 134 to include this pay, meaning it won't count as taxable income. Representative Andy Barr from Kentucky introduced it with two co-sponsors. It's currently in the House Ways and Means Committee, which handles tax legislation, so it still needs a committee vote before the full House considers it.
Introduced Mar 12, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
The main impact is that members of the National Guard and Reserves would not have to pay federal income tax on their drill pay or other inactive-duty training compensation. This means they would keep more of their earnings directly. For someone already paying taxes on that pay, they might see a larger refund or reduced amount owed. Important: this only affects inactive-duty training pay, not active-duty pay or other benefits like housing allowances. The change would apply to compensation received after the bill's enactment date.
Supporters Say
Supporters say it's fair compensation for service and helps with recruitment and retention.
Critics Say
Critics argue it reduces revenue and could be seen as a tax break for a select group.
Supporters, often from military-heavy districts, argue that drill pay is modest and taxing it places an unfair burden on those who balance civilian jobs with training. They believe this tax relief honors their service and encourages people to stay in the Guard or Reserves. Critics point out that any tax exclusion shrinks the tax base and could require offsets or increase the deficit. Some might also question why this benefit is extended only to inactive-duty training, while active-duty members still pay tax on their base pay.