HR 561, the Overtime Pay Tax Relief Act of 2025, allows eligible hourly workers to deduct up to 20% of their legally required overtime pay from their taxable income. This deduction applies to workers earning overtime under the Fair Labor Standards Act, with income limits: $100,000 for single filers, $150,000 for heads of household, and $200,000 for married couples filing jointly. The deduction expires after 2029 and applies to all taxpayers, including those who don’t itemize deductions. It modifies tax withholding procedures to implement this new deduction starting from the bill’s enactment date.
This bill creates a new tax deduction for cash tips received by workers in specific service occupations that traditionally accepted tips before 2024 (like servers, barbers, and beauticians). It allows a deduction of up to $25,000 per year for qualified tips included on employer statements, but excludes employees who earned over a certain threshold ($220,000 in 2023) from the same employer the previous year. The deduction applies to taxable years beginning after December 2024 and is designed to reduce taxable income for eligible workers. It directly affects service industry workers in qualifying tip-dependent jobs who receive cash tips, not the general public.
HR 2621, the REAL AMERICA Act, creates two new tax deductions: one for cash tips reported to employers (with an income limit of $450,000 for individuals or $900,000 for joint returns) and another for qualified overtime compensation paid under the Fair Labor Standards Act. It also changes tax treatment for partners providing investment management services to partnerships, requiring certain gains to be treated as ordinary income rather than capital gains. The bill repeals the requirement to include Social Security benefits in gross income while providing funding to maintain Social Security trust fund balances. These changes would primarily affect taxpayers who earn cash tips, receive overtime pay, or work in investment management roles within partnerships.
HR 2879, the Prison Staffing Reform Act of 2025, requires the Bureau of Prisons to conduct a comprehensive external review of understaffing within 180 days of enactment. The review, to be done with input from prison unions, civil rights groups, and recidivism reduction organizations, must identify staffing impacts on inmate access to medical care, programming, safety, and staff working conditions. It mandates the Bureau to develop specific staffing guidelines (including officer-to-inmate ratios per unit and non-correctional staff needs) and a 3-year implementation plan to fill vacancies and reduce mandated overtime. The plan must address issues like medical care wait times, security risks, and staff health, with annual progress reports to Congress and the prison union. This bill directly affects over 35,000 Bureau of Prisons employees and the nearly 121,000 individuals in federal custody nationwide.
The LEO Fair Retirement Act of 2025 allows federal law enforcement officers to include unpaid overtime hours in their retirement benefit calculations. Currently, pay caps prevent officers from being compensated for all overtime worked, meaning they miss out on retirement credit for those hours. To qualify, officers must make a lump-sum payment (or choose a reduced monthly annuity) to cover the retirement contributions they would have made if paid, based on their actual overtime hours. This applies to officers covered by the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS), and the bill also provides a tax credit for the lump-sum payment.
HR 3680, the "No Corporate Crooks Act," prohibits individuals convicted of specific serious financial crimes from serving in the U.S. executive branch. It directly affects corporate executives (like CEOs) who have been finally convicted of offenses including bribery, fraud, embezzlement, tax evasion, or wage theft. The bill makes such individuals ineligible for appointment to any executive branch position. The key provision is a mandatory ineligibility requirement triggered by a final conviction for any listed covered crime.
This bill prohibits companies from using automated systems to set prices or wages based on surveillance data about consumers or workers. It bans "surveillance-based price setting" (personalized pricing based on consumer tracking) and "surveillance-based wage setting" (using personal data to determine worker pay), with limited exceptions for standard discounts like student or senior citizen rates when properly disclosed. Companies must publish clear procedures about how their automated systems work, including how data is used and how consumers/workers can challenge inaccuracies. The Federal Trade Commission and Equal Employment Opportunity Commission will enforce the law, and individuals can file lawsuits to challenge violations. The bill also prohibits pre-dispute arbitration agreements that would prevent class action lawsuits.
The Shutdown Fairness Act ensures that certain federal employees performing essential work during government funding gaps receive their regular pay. It applies directly to "excepted employees" (such as border security personnel, air traffic controllers, and military members on active duty) who must work when appropriations lapse. The bill appropriates funds from the Treasury to cover their standard pay, benefits, and allowances during these periods, without requiring new annual appropriations. These payments are later charged to the agency’s regular budget when funding is restored, ensuring no additional costs to Congress. The law takes effect retroactively from September 30, 2025.
This bill amends federal pay rules to expand higher overtime pay rates for U.S. Border Patrol supervisors. It changes the eligibility from only GS-12 agents to include all supervisors classified from GS-12 through GS-15. The key provision modifies Section 5550(h) of Title 5, U.S. Code, to apply the higher overtime pay rate to these higher-grade supervisory positions. The bill aims to improve retention for experienced Border Patrol supervisors by increasing their overtime compensation.
HR 5924, the Pay Our Capitol Police Act, ensures that U.S. Capitol Police officers, civilian staff, and supporting contractors continue receiving pay and benefits during a funding gap for fiscal year 2026. It appropriates temporary funds for salaries, overtime, hazard pay, health benefits, retirement contributions, and contractor payments if regular appropriations aren't enacted by September 30, 2026. These funds are charged to future appropriations once regular funding is approved, preventing pay delays for Capitol Police personnel. The bill directly affects Capitol Police members classified as excepted employees or performing emergency work, along with their supporting staff and contractors. It applies specifically to the Capitol Police during the fiscal year 2026 funding period.
