No Tax on Border Patrol Agent Overtime Act
- Bill Number
- S. 4580
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-20: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-05T15:37:46Z
AI-Generated Summary
Purpose
This legislation amends the tax code to classify certain overtime and related compensation paid to border patrol agents as qualified overtime compensation, which allows such pay to receive favorable tax treatment.
Key Provisions
- The bill expands the definition of qualified overtime compensation under tax code Section 225(c)(1) to cover payments to border patrol agents beyond standard overtime required by the Fair Labor Standards Act.
- It specifically includes:
- Supplemental pay under subsections (b)(2) and (b)(3) of 5 U.S.C. 5550.
- Premium pay under subsection (c)(1) of that section.
- Overtime pay under section 5542(g) of title 5, excluding hazardous duty pay.
- The change applies to tax years starting after December 31, 2025.
Significant Changes to Existing Law
- Current tax code limits qualified overtime compensation mainly to excess pay under the Fair Labor Standards Act; this bill adds border patrol-specific pay categories that exceed basic pay rates, even when basic pay is calculated without certain adjustments.
- It introduces a targeted exception for border patrol agents defined under federal personnel law.
Potential Impacts
- Government agencies: The Internal Revenue Service may see reduced tax collections from affected compensation; the agency responsible for border patrol operations could experience changes in how agents view total pay.
- Citizens: Border patrol agents would retain more of their overtime earnings after taxes, potentially increasing take-home pay.
- International relations: No direct effects are outlined in the bill.
Main Stakeholders Affected
- Border patrol agents employed under the relevant federal pay rules.
- The U.S. Customs and Border Protection agency.
- The Internal Revenue Service, due to its role in tax administration.
- Federal taxpayers overall, as the change affects government revenue.
Notable Legal, Constitutional, or Political Implications
- This represents a tax policy adjustment focused on federal employee compensation, with no evident constitutional conflicts in the text.
- It creates a specialized tax rule for one group of law enforcement personnel, which could influence future debates on tax treatment of public sector pay.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-20: Read twice and referred to the Committee on Finance.
- 2026-05-20: Introduced in Senate
Bill Versions
- No Tax on Border Patrol Agent Overtime Act — issued 2026-05-20 — PDF (3 pages)