Cortez Masto, Young Introduce Bipartisan Legislation to End Unfair Tax Burden on Sexual Assault Survivors

Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Todd Young (R-Ind.) introduced bipartisan legislation to eliminate an unfair tax burden on survivors of sexual assault. The Survivor Justice Tax Prevention Act would ensure survivors of sexual assault are not taxed on settlement income they earn in a lawsuit against their abuser. After taking legal action against their abuser, sexual abuse survivors are forced to pay income tax on any settlement money they receive unless they can show visible evidence of physical injury. However, injuries resulting from sexual assault are not always visible or may have healed by the time a settlement is reached. The Survivor Justice Tax Prevention Act would fix this injustice. “Seeking justice as a sexual assault survivor requires enormous bravery, effort, and time,” said Senator Cortez Masto. “It’s unfair that when survivors do reach a settlement, they have to pay taxes on the payments they fought so hard for unless they can show visual evidence of injury on the most private parts of their bodies. This legislation ensures that all survivors receive their full settlements.” “Survivors of sexual assault who have courageously sought justice should not face an additional, unfair burden from our tax code,” said Senator Young . “Our bipartisan legislation will fix this injustice and ensure survivors can receive the full compensation they are owed. This commonsense change will provide greater fairness for survivors and ensure the tax code does not create another obstacle on the path to justice.” Specifically, the Survivor Justice Tax Prevention Act would instead tie Internal Revenue Service (IRS) tax exemption on settlement funds to the definitions of sexual act and sexual contact in the federal criminal code, rather than to visible evidence of injury. The full text of the legislation can be found here . Senator Cortez Masto has fought deliver justice for the survivors of sexual violence and human trafficking since her time as Nevada’s attorney general. She introduced two bipartisan bills to combat human trafficking along America’s interstates, airways, railroads, and waterways, and legislation to help survivors of human trafficking flee their captors. She urged the chairman of the Banking, Housing, and Urban Affairs Committee to hold a hearing on Jeffrey Epstein’s use of the U.S. financial system to perpetrate his heinous crimes. Prior to the 2026 FIFA World Cup, Cortez Masto urged FIFA to take steps to prevent human trafficking at the events. ###