Treasury would pay tax filers and dependents for Iran war costs

Treasury would make equal yearly payments to eligible individual tax filers and their dependents. Filers must have filed a return for a tax year ending during the preceding fiscal year. Their dependents under federal tax law would also qualify. Nonresident aliens, estates, and trusts would be excluded as filers. Payment documents could not carry an elected official’s name, signature, or likeness. Payments would be due by October 30 each fiscal year, starting in fiscal year 2027.

The federal budget office would calculate taxpayers’ yearly Iran war costs, and Treasury would receive that amount from Defense funds. The calculation would cover the preceding fiscal year, including costs linked to higher interest rates, fuel and food prices, and inflation. Each eligible account would contribute the same percentage of its uncommitted funds. Calculations would be due by October 15 each fiscal year, starting in fiscal year 2027. Funds would transfer that same day.