By Ethan Faverino |

In a major show of support for America’s military heroes, Congressman Abe Hamadeh (R-AZ-08), alongside Senator Pete Ricketts (R-NE), has introduced two companion bills—the Service Members Tax Relief Act and the Tax Cuts for Veterans Act of 2025.

These bills would fully exempt all active-duty and reserve military income, as well as all service-related retirement payments and VA benefits, from federal income taxes.

The Service Member Tax Relief Act eliminates federal income tax on all pay received by active-duty and reserve members across the eight Federal Uniformed Services—including the Army, Marine Corps, Navy, Air Force, Space Force, Coast Guard, NOAA, and Public Health Service Commissioned Corps—as well as their Reserve and National Guard components when on federal orders. This includes base pay, enlistment and retention bonuses, education incentives, and all special and incentive pay.

The companion bill, Tax Cuts for Veterans Act of 2025, amends Section 122 of the Internal Revenue Code to permanently exclude all military retirement pay, retainer pay (Titles 10 and 14), and VA compensation, disability, and survivor benefits (Titles 37 and 38) from federal taxation.

“These bills are in keeping with my commitment to America First principles and advances President Trump’s Peace Through Strength agenda by alleviating the burdens on our service members in some small measure,” said Congressman Hamadeh, a former Army Reserve intelligence officer. “Our service members face high operational demands and cost-of-living pressures that outpace pay tables. So, anything we can cost-effectively do to ease those pressures should be done.”

Senator Pete Ricketts added, “Our servicemembers and veterans sacrifice for the country. We owe them more than we can ever repay. That’s why I’m working to ensure these brave women and men keep all the benefits they earn during military service. We also need to make sure that service members are set up for success when they transition back to civilian life. These bills strengthen our support for Nebraska servicemembers, veterans, and their families.”

Congressman Hamadeh has quickly emerged as a leading voice for America’s veterans and active-duty troops. In September, the House unanimously passed two of his bipartisan bills: the Edith Nourse Rogers STEM Scholarship Opportunity Act and the Health Professional Scholarship Program Improvement Act of 2025.

Congressman Hamadeh and Ricketts’ new bills are now pending in their respective chambers, already earning strong support from veteran advocacy organizations around the country.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.