The No Tax on Drill Pay Act would allow members of the military reserve and National Guard to exclude compensation they receive for inactive-duty training from their taxable income. Currently, this drill pay is treated as regular income and subject to federal taxes; the bill would change that by amending the tax code to classify such payments as a qualified military benefit. The measure affects reserve and National Guard members who participate in periodic training exercises throughout the year. The bill contains no specific funding provisions or timelines beyond taking effect after it becomes law. The legislation was introduced in March 2026 and referred to the House Ways and Means Committee.
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