Deluzio Priority to Waive Federal Taxes on Railroad Payments for Victims of East Palestine Derailment Passes House

WASHINGTON, D.C. – Today, Congressman Chris Deluzio (PA-17) voted to pass the Federal Disaster Tax Relief Act of 2023. Among other disaster recovery measures, the bill includes a provision to exempt Norfolk Southern Railroad’s payments to residents impacted by the East Palestine train derailment from federal taxes, something Congressman Deluzio has been pushing for since January.

The Federal Disaster Tax Relief Act of 2023 came to the House Floor for a vote after Congressman Deluzio signed on to an effort to discharge the bill, bypassing committee and bringing it directly to the floor for a vote. The bill passed on a bipartisan basis and now heads to the Senate for consideration.

Following the bill’s Congressman Deluzio released the following statement:

“The East Palestine derailment was a disaster for a lot of families in Beaver County, and it is ridiculous that folks hurt by this train derailment in their backyard would have to pay taxes on Norfolk Southern’s payments to them.

“I knew we had to make this right, and tonight, we passed a bill to do just that.

“Now, these payments will be exempted from federal taxes—just like we do for natural disasters. It’s the right thing to do, and I was glad to see colleagues in both parties support this measure.

“Let’s keep going to hold big railroads accountable and make freight rail safer. It’s time to pass my bill, the Railway Safety Act.”