Maddy summaryHR 3512, the Tackling Predatory Litigation Funding Act, imposes a new annual tax on funds received by third-party investors who finance lawsuits through litigation financing agreements. It directly affects investors (including foreign entities) who provide funding to plaintiffs or law firms in exchange for a share of settlement or judgment proceeds, excluding small agreements under $10,000 or standard loans. The tax equals the top individual income tax rate plus 3.8 percentage points, with 50% withheld from settlement payments by parties involved in the lawsuit. The law also clarifies that such funds cannot offset losses and excludes certain typical legal fee reimbursements from taxation. The provisions take effect for taxable years beginning after December 31, 2025.
Sponsored bills
Access to Prescription Digital Therapeutics Act of 2025 This bill provides for Medicare and Medicaid coverage of prescription digital therapeutics (i.e., software applications that are used to prevent, manage, or treat medical conditions). The Centers for Medicare & Medicaid Services must establish a Medicare payment methodology for payments to manufacturers that takes into account certain factors (e.g., ongoing use); manufacturers must report specified information about private payors, subject to civil penalties.
Maddy summaryHR 3228, the Constitutional Hearing Protection Act, reclassifies firearm silencers as firearms under federal tax law and eliminates their separate registration under the National Firearms Act. It requires the Attorney General to destroy all existing federal silencer registration records within one year and preempts state laws that impose taxes, registration, or recordkeeping requirements on silencers. The bill defines "firearm silencer" and specifies that manufacturers must mark silencers on a "keystone part" with a serial number. This directly affects silencer owners, manufacturers, and state governments by standardizing federal regulation and removing state-level restrictions.
Maddy summaryThis bill clarifies liability for payroll tax errors when third-party payroll services (like professional employer organizations) rely on employer certifications. It allows these services to depend on employer-provided information unless they knew or should have known of an error. If an error is discovered, the employer bears full liability unless the third party had "constructive knowledge" of the error, in which case liability is shared based on the portion of the error the third party knew about. The bill also prevents the IRS from delaying payroll tax credits or auditing employers solely because a third party relied on an erroneous certification from that employer. It directly affects third-party payroll services and the businesses that use their services for tax filings.
Maddy summaryThis bill repeals a restriction that previously prevented individuals from rolling over funds directly from their Individual Retirement Accounts (IRAs) to donor-advised funds (DAFs) for charitable giving. It directly affects IRA account holders who wish to make tax-advantaged charitable contributions through DAFs. The key provision amends the Internal Revenue Code to remove the specific language barring such rollovers, allowing these transfers to occur without triggering taxable distributions. The change becomes effective after the bill's enactment, streamlining a pathway for donors to support charities via DAFs using IRA assets.
Maddy summaryThis bill codifies a "maximum pressure" policy toward Iran, requiring the U.S. to maintain all sanctions until Iran meets specific conditions related to its nuclear program, missile development, support for terrorism, and human rights violations. It expands sanctions on Iran's Revolutionary Guard Corps (IRGC) and entities supporting Iran's ballistic missile program, while prohibiting waivers of sanctions on these entities. The bill mandates regular reports to Congress on Iran's nuclear activities, support for terrorist groups like Hamas and Hezbollah, and human rights abuses within Iran. It also directs the use of frozen Iranian assets to support victims of state-sponsored terrorism and prevents the release of funds that could benefit Iran's terrorist proxies. The bill aims to maintain economic and diplomatic pressure on Iran until it changes its behavior across multiple fronts.
Maddy summaryThis bill amends the tax code to allow health savings account (HSA) funds to be used tax-free for funeral expenses of the account holder. It defines covered expenses broadly - including burial, cremation, caskets, funeral services, and related costs - and sets a $5,000 annual limit per person. Expenses incurred within 90 days of the account holder’s death can be treated as if paid before death. The change applies to distributions after the bill’s enactment for eligible taxable years.
Maddy summaryThe SHORT Act (HR 2395) redefines federal firearm definitions to exclude antique and collector firearms from being classified as firearms, and removes distinctions between short-barreled rifles and shotguns in federal regulations. It prevents state laws from imposing taxes or registration requirements on short-barreled rifles and shotguns, requiring state rules to align with federal compliance instead. The bill also mandates the federal government to destroy specific records related to these firearms within one year of enactment.
Maddy summaryThe Freedom from Unfair Gun Taxes Act of 2025 would prohibit states and local governments from imposing taxes on the sale of firearms, ammunition, or firearm parts during interstate or foreign commerce. This bill directly affects state tax policies and manufacturers or dealers selling these items across state lines. It explicitly states that the bill does not change the existing federal tax on firearms and ammunition that funds wildlife conservation programs. The key provision bans state-level taxes for these sales in interstate transactions while preserving current federal funding mechanisms.
Maddy summaryHR 2477, the Portable Ultrasound Reimbursement Equity Act of 2025, would amend Medicare rules to require equal reimbursement for portable ultrasound transportation and setup services as is currently provided for portable X-ray services. This change directly affects Medicare beneficiaries needing portable ultrasound exams and healthcare providers (like mobile clinics) who offer these services. The bill mandates that Medicare pay separately for portable ultrasound transportation and setup in the same way and to the same extent as portable X-ray services, using similar supplier requirements as existing regulations. The policy change would take effect for services provided on or after January 1, 2027.