Section 1. Short title
This Act may be cited as the Fortifying Income by Giving our Heroes Their Earned-Tax Relief Act of 2025 or the FIGHTER Act of 2025.
(a) In general
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
(a) In general
Gross income shall not include regular compensation received by an individual for active service as a member of the Armed Forces.
(b) Exception
This section shall not apply to any compensation if the individual receiving such compensation served as a Member of Congress at any time during the 10-year period ending on the date that such individual received such compensation.
(c) Definitions
For purposes of this section—
(1) Active service
The term active service has the meaning given that term under section 101 of title 37, United States Code.
(2) Member of Congress
The term Member of Congress means a Senator or Representative in, or Delegate or Resident Commissioner to, the Congress.
(3) Regular compensation
The term regular compensation has the meaning given that term under section 101 of title 37, United States Code.
(d) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.
(b) Withholding
The Secretary of the Treasury (or the Secretary’s delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account amounts excludable from gross income under section 139J of such Code (as added by this Act).
(c) Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:
(d) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
Section 3. Government Efficiency Savings and Expenditure Reductions
The United States DOGE Service (commonly referred to as the Department of Government Efficiency or DOGE) shall implement cost-saving initiatives that reduce Federal expenditures by an amount that is at least equal to the reduction in Federal revenues that occurs by reason of the amendments made by section 2.