[Congressional Record Volume 172, Number 129 (Thursday, August 6, 2026)]
[Senate]
[Pages S4487-S4489]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Unanimous Consent Requests
Mr. CRUZ. Mr. President, I rise today to speak about the critical
need for disaster relief in my home State of Texas for a Texas
community that was devastated by historic wildfires. I will seek to
improve the pending Disaster Tax Relief Act being considered by the
Senate to address that acute need in Texas.
No doubt the current version provides relief that is also badly
needed elsewhere. I would like to speak directly to the families of
Spokane, WA, who have lost their homes, their livelihoods, their sense
of security. The people of Texas stand with you, and we are profoundly
grateful to the firefighters and first responders risking their lives
to protect their neighbors. That is a pain families in Texas know all
too well.
In 2024, Texas witnessed truly horrific wildfires. The Smokehouse
Creek fire was the single largest wildfire in the history of the State
of Texas. It killed two people. It burned more than 1 million acres. It
destroyed more than 500 homes and businesses, and it killed
approximately 15,000 cattle.
The Windy Deuce fire was among the most destructive and fast-moving
wildfires ever to strike the Texas Panhandle. It burned more than
140,000 acres. Despite the horror and the destructiveness of these
fires, they were not treated as qualified wildfire disasters under
Federal law.
One result is that any relief payments are subject to Federal income
taxes, which dramatically reduces the scope and effectiveness of the
badly needed relief. Victims of other catastrophic wildfires do not
incur such penalties on the relief they receive.
Disaster relief is important. I am proud to support disaster relief.
Americans step in and help their fellow Americans in times of crisis.
But disaster relief must be fair. Disaster relief cannot demonstrate
favoritism, choosing some recipients as more worthy or luckier than
others.
My amendment does something very simple. It includes in this disaster
relief bill the worst wildfire in the history of the State of Texas. On
any reasonable argument on the merits, the Texas Panhandle wildfires
deserve to be included.
I would note also that the score of this provision is, in
congressional terms, quite small: $31 million is what this addition
costs. In this body, $31 million is a sum that is usually too small
even to be written down. Moreover, the House of Representatives and, in
particular, the chairman of the Ways and Means Committee has explicitly
committed that if and when we add this disaster bill, that the House,
in September when they return, will take it up and pass it.
So this is the path, No. 1, to passing this disaster bill--which I
very much want to do--but No. 2, to doing so in a way that does not
unfairly leave out the Texans, the victims of the largest wildfire in
the history of Texas. We have got to do both.
And so I will now propound a unanimous consent request to take up and
pass my amendment to the Doug LaMalfa Federal Disaster Tax Relief
Certainty Act to designate the Smokehouse Creek fire and the Windy
Deuce fire as qualified wildfire disasters, ensuring that relief
payments to those affected receive the same Federal tax treatment as
victims of other qualified wildfires.
I urge my colleagues to pass this commonsense amendment today so that
Texans receive the same treatment as other victims of wildfires. And I
would note that if my colleagues choose not to accept the amendment,
the alternative is going to be that nothing passes. That is not an
alternative that is good for anybody, and so my hope is that common
sense will prevail.
Mr. President, as if in legislative session and notwithstanding rule
XXII, I ask unanimous consent that the Finance Committee be discharged
from further consideration of H.R. 5366, and the Senate proceed to its
immediate
[[Page S4488]]
consideration. I further ask that the Cruz amendment at the desk be
considered and agreed to; that the bill, as amended, be considered read
a third time and passed; and that the motion to reconsider be
considered made and laid upon the table.
The ACTING PRESIDENT pro tempore. Is there objection?
Mr. WYDEN. Reserving the right to object.
The ACTING PRESIDENT pro tempore. The Senator from Oregon. Mr. WYDEN.
Mr. President, earlier this week my home State set a new devastating
record: Over 2 million acres in Oregon have burned in wildfires across
our State this summer. That is the most in recorded history with 2 more
months of fire season to go. Thousands of Oregonians have been under
evacuation orders or are preparing to be. Our whole State is blanketed
in thick smoke, making for some of the worst air quality in the world.
Many have lost their homes, their livestock, their businesses, and
livelihoods. When you lose your home in a wildfire, the last thing you
should be worried about is being hit by a massive tax bill. The
bipartisan tax relief bill being considered on the bill today would
give the people of my State affected by these blazes some peace of
mind. It would lift a massive tax burden and deliver financial relief
to every American impacted by a federally declared natural disaster.
It is going to get rid of a totally unfair tax on settlement payments
and ensure disaster victims can deduct losses after disasters.
This is an issue the Republicans created under Donald Trump in 2017,
but Senator Cruz' amendment would derail a bipartisan proposal
entirely. His amendment threatens the lifeline assistance in this bill
for Americans that lose their home during a natural disaster.
The Senator from Texas has repeatedly opposed funding for federally
declared disasters like Hurricane Sandy. Now he comes to the floor to
hold the bill hostage in order to send money to his State for his own
priorities while Donald Trump holds up disaster funding for Oregon
wildfire victims.
The House has already passed this bill that was negotiated on a
bipartisan basis. Now the Senate must do its job, and that is why I am
offering up this version of legislation that has already passed through
the House.
So, Mr. President, therefore, I ask the Senator to modify his request
so that the Finance Committee be discharged from further consideration
of H.R. 5366 and the Senate proceed to its immediate consideration;
further, that the bill be considered read a third time and passed, and
that the motion to reconsider be considered made and laid upon the
table.
The ACTING PRESIDENT pro tempore. Is there objection to the
modification?
Mr. CRUZ. Reserving the right to object.
The ACTING PRESIDENT pro tempore. The Senator from Texas.
Mr. CRUZ. I would note that I agree with virtually every word that
was said by the Senator from Oregon. I agree that this tax treatment
taxing someone on a disaster relief settlement from, say, the power
company that caused the fire--giving someone a big tax bill for that
relief that they are entitled to, it is unfair; it is wrong. I am
enthusiastic about passing this bill and passing it now.
What I am not enthusiastic about is leaving thousands of Texans out
because just like the citizens of Oregon who suffered devastating
losses, just like the citizens of California, just like the citizens of
Washington State who suffered devastating losses, there were also
thousands upon thousands of Texans who suffered devastating losses. And
my proposal is very simple: Let's be fair. Let's not exclude the
Texans. Let's provide the relief that is right and just to everyone who
has been impacted by these devastating wildfires.
I will point out also the Senator from Oregon said there is an
urgency to pass this. I want you to understand that--everyone
watching--there are two paths that we can go down. One path is when I
decline to make this modification, the Senator from Oregon could say
nothing, could just be quiet, and then the Presiding Officer would say,
``No objection is heard,'' and this bill would pass the Senate with the
Texans included so it would be fair. It would not be excluding people
that are similarly situated. It would be treating everyone fairly, and
it would go to the House.
The House will be back in September, and we have a commitment from
the chairman of the Ways and Means Committee, the committee that has
jurisdiction over this, to take this up and pass it. So if the Senator
from Oregon chooses simply to say nothing, this bill moves on its way,
and it is substantially closer to being signed into law and giving
actual relief to the victims of these wildfires. However, the other
path--and folks in the Gallery should listen for two words the Senator
from Oregon says, ``I object.'' What will happen is the bill dies. It
doesn't pass. The victims in Texas get no relief; the victims in Oregon
get no relief; the victims in California get no relief; the victims in
Washington State get no relief.
I don't understand why that is a good outcome. I think that is a
terrible outcome. But the Senator from Oregon has complete control over
which of those two paths we go down.
I will not modify my request.
The ACTING PRESIDENT pro tempore. The objection to the modification
is heard.
Is there objection to the original request?
Mr. PADILLA. Reserving the right to object.
The ACTING PRESIDENT pro tempore. The Senator from California.
Mr. PADILLA. Mr. President, colleagues, this disaster bill, this
disaster tax bill includes important bipartisan legislation that I
introduced with Senators Lummis, Wyden, and Sheehy to extend a critical
tax provision for disaster survivors that we enacted into law last
Congress. Two years ago, my Protect Innocent Victims of Taxation After
Fire Act made an important update to our Tax Code.
It made sure that individuals, families, and entire communities who
suffered from wildfires received the full compensation that they were
awarded in courts to rebuild their lives.
But, unfortunately, every year more devastating disasters take place,
and so Congress must extend the same important financial protection to
survivors of more recent wildfires.
That is what the House-passed version of the bill would do. But to be
clear, disaster settlement funds are not income. They are not a
financial windfall. They are certainly not winning the lottery. What
they are is compensation, partial compensation in most cases, for what
has been lost.
They are meant to give survivors an opportunity to begin to rebuild
not just their homes but their lives.
This bill is not just for my constituents in California that have
been impacted by the Eaton and Palisades fires 1\1/2\ years ago; it is
also for those victims in Oregon and Hawaii and other communities
across the country that have experienced similar disasters.
Our bill would ensure that all recent wildfire victims throughout the
country have access to the full value of their settlement without any
unfair tax burden. It is common sense, and it is a bipartisan solution
to protect Americans at the most difficult time of their lives.
We should pass this legislation now. Let's not keep survivors
waiting, worrying, and wondering about their financial future any
longer.
I want to thank Senators Lummis, Wyden, and Sheehy for their
partnership, as well as my colleague Representative Mike Thompson in
the House for his steadfast leadership on this issue.
I also want to recognize that the late Representative Doug LaMalfa
was such a critical part of this effort. The House fittingly named this
bill in his honor because it reflects the tireless leadership he
brought to these issues impacting disaster-stricken communities
throughout his career. He and I first served together in the California
State Senate and then again here--he in the House; I in the Senate.
I would urge all of our colleagues to support the House-passed
version of the measure and allow survivors to begin to rebuild their
lives without unnecessary fear or delay.
Thank you.
The PRESIDING OFFICER. Is there objection to the original request?
The Senator from Oregon.
Mr. WYDEN. I object to the Cruz request, and I want to take note of
the floor right now because our proposal
[[Page S4489]]
has bipartisan support on the floor this morning. In other words,
talking about who has been trying to bring people together and the
like, our proposal on this floor--the Senator from Florida, the Senator
from California, the Senator from Oregon--is a bipartisan proposal. The
Senator from Texas is not on the floor with bipartisan support.
I hope he will work with us over the course of the morning to get
this worked out.
That is why I object to the Cruz proposal, and I object again.
The PRESIDING OFFICER. The objection is heard.
The Senator from Florida.
Mr. SCOTT of Florida. First off, I rise to recognize all my
colleagues that have spoken about the importance of disaster relief,
and I think we all want to make sure we help our States. Right now, I
rise in support of the Doug LaMalfa Federal Disaster Tax Relief
Certainty Act.
Florida is no stranger to natural disasters. As we speak, we are in
the middle of hurricane season, which started June 1. When I was
Governor, I wanted Florida to be the national model for disaster
relief. We prioritized preparedness, safety, and quick action. But once
the storms pass, you know, like anyplace else, Florida is in the same
position. Floridians had to rebuild. Families lost homes. Some lost
everything they had.
When you are in that position, one of the worst moments of your
entire life, you shouldn't have to worry about a rising tax bill. That
is why I helped lead this bipartisan bill and previous bills to provide
not just Floridians but all Americans all across this country tax
relief after disaster strikes, including Texans and Oregonians.
Our citizens need certainty when they are piecing their lives back
together; they don't need the government taking a cut of the money they
need. This bill just gives certainty of necessary tax relief to victims
of natural disasters so they can focus on getting back on track and not
worrying about the IRS.
This bill is very critical to my State, but it is also about more
than hurricanes. It is not just about hurricanes; this bill helps
families affected by all natural disasters, including wildfires,
tornadoes, earthquakes, and any other scenario that can be declared a
Federal disaster.
It is good for the entire country. It is a bipartisan bill, and it is
a tribute to Doug LaMalfa, who passed away earlier this year.
This passed the House unanimously earlier this year, so if we pass
this today, it will become law.
Americans don't need extra worries when the worst happens, and we
shouldn't be an obstacle to their recovery. By passing this bill, we
will make it easier to rebuild the American dream when hardships
strike.
I am not going to give up. I look forward to continuing to work with
my colleagues, including with my friend from Texas, to get this bill
across the finish line for every Floridian and every American. I
recognize the issue he is dealing with, and I look forward to working
with him to try to solve the issues Texans are looking at right now.
I yield the floor
The PRESIDING OFFICER (Mrs. Moody). The Senator from New Hampshire.