I 
119TH CONGRESS 
2D SESSION 
H. R. 7381 
To amend the Internal Revenue Code of 1986 to impose a tax on damages 
received by the President of the United States on account of any civil 
action filed against the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2026 
Mr. THOMPSON of California (for himself, Mr. DOGGETT, Mr. LARSON of Con-
necticut, Mr. DAVIS of Illinois, Ms. CHU, Ms. DELBENE, Ms. MOORE of 
Wisconsin, Mr. BOYLE of Pennsylvania, Mr. PANETTA, Mr. GOMEZ, Mr. 
HORSFORD, Ms. SA´NCHEZ, Mr. EVANS of Pennsylvania, and Mr. SCHNEI-
DER) introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a tax on damages received by the President of the United 
States on account of any civil action filed against the 
United States, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prevent Presidential 
Profiteering Act’’. 
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SEC. 2. IMPOSITION OF TAX ON DAMAGES RECEIVED BY 
THE PRESIDENT OF THE UNITED STATES ON 
ACCOUNT OF CIVIL ACTION FILED AGAINST 
THE UNITED STATES. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 50B—CERTAIN CIVIL DAMAGES 
OF THE PRESIDENT OF THE UNITED 
STATES 
‘‘Sec. 5000E. Imposition of tax on damages received on account of civil action 
filed against the United States. 
‘‘SEC. 5000E. IMPOSITION OF TAX ON DAMAGES RECEIVED 
ON 
ACCOUNT 
OF 
CIVIL 
ACTION 
FILED 
AGAINST THE UNITED STATES. 
‘‘(a) IN GENERAL.—There is hereby imposed on each 
covered person for any taxable year a tax equal to 100 
percent of the qualified civil action amount received by 
such person during such taxable year. 
‘‘(b) COVERED PERSON.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘covered person’ 
means— 
‘‘(A) any individual who has served as 
President of the United States, 
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‘‘(B) any member of the family of such in-
dividual, and 
‘‘(C) any person controlled (based on prin-
ciples similar to the principles which apply for 
purposes of section 52(b)) by one or more indi-
viduals described in subparagraph (A) or (B). 
‘‘(2) MEMBER
OF
THE
FAMILY.—The term 
‘member of the family’ means, with respect to any 
individual described in paragraph (1)(A)— 
‘‘(A) the spouse of such individual, and 
‘‘(B) any individual who bears a relation-
ship to such individual which is described in 
subparagraphs (A) through (G) of section 
152(d)(2). 
‘‘(c) QUALIFIED CIVIL ACTION AMOUNT.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified civil ac-
tion amount’ means, with respect to any covered 
person during any taxable year, the aggregate 
amount of damages received by such person during 
such taxable year (whether by settlement, verdict, 
judgment, or otherwise) on account of any civil ac-
tion— 
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‘‘(A) filed by such person against the 
United States (or any agency or instrumentality 
thereof), and 
‘‘(B) with respect to which the filing or 
settlement of, or issuance of a verdict or judg-
ment for, occurred during the applicable period. 
‘‘(2) APPLICABLE PERIOD.—The term ‘applica-
ble period’ means, with respect to any covered per-
son, the period of time— 
‘‘(A) beginning with the date on which the 
individual described in subsection (b)(1)(A) 
began serving as President of the United 
States, and 
‘‘(B) ending with the date on which such 
individual ceased to serve as President of the 
United States. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) ADMINISTRATIVE PROVISIONS.—For pur-
poses of subtitle F, any tax imposed by this section 
shall be treated as a tax imposed by subtitle A. 
‘‘(2) EXCLUSION
FROM
GROSS
INCOME.—For 
purposes of chapter 1, the gross income of any cov-
ered person for any taxable year shall not include 
any qualified civil action amount received by such 
person during such taxable year.’’. 
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(b) NO DEDUCTION FROM INCOME TAX.—Section 
275(a)(6) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘50B,’’ after ‘‘50A,’’. 
(c) CLERICAL AMENDMENT.—The table of chapters 
for subtitle D of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to chapter 
50A the following new item: 
‘‘Chapter 50B—CERTAIN CIVIL DAMAGES OF THE PRESIDENT OF THE 
UNITED STATES’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to amounts received 
after the date of the enactment of this Act. 
Æ 
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