H.R. 7731 would allow American Olympic and Paralympic athletes to exclude prize money and medal bonuses from their taxable income without any income limit restrictions. Currently, federal tax law caps how much athletes can exclude from taxes, but this bill would remove that cap entirely, meaning athletes at any income level could keep all their Olympic and Paralympic winnings tax-free. The legislation affects competitive athletes who win medals or receive prize money from the U.S. Olympic Committee and would apply to all prizes and awards received after December 31, 2025. The bill has no specified federal funding since it reduces tax revenue rather than appropriating funds, and it was introduced in February 2026 with bipartisan sponsorship.