Increases the tax-free exclusion for health and long-term care insurance for public safety retirees.

The Public Safety Retirees Healthcare Protection Act of 2025 amends the Internal Revenue Code to double the exclusion from gross income for distributions from governmental retirement plans used for health and long-term care insurance for public safety officers. The exclusion increases from $3,000 to $6,000, effective for distributions in taxable years beginning after December 31, 2025. This change aims to provide greater financial relief to public safety retirees by reducing their taxable income related to healthcare costs.

Increases the tax-free exclusion for health and long-term care insurance for public safety retirees.

The Public Safety Retirees Healthcare Protection Act of 2025 amends the Internal Revenue Code to double the exclusion from gross income for distributions from governmental retirement plans used for health and long-term care insurance for public safety officers. The exclusion increases from $3,000 to $6,000, effective for distributions in taxable years beginning after December 31, 2025. This change aims to provide greater financial relief to public safety retirees by reducing their taxable income related to healthcare costs.