The U.S. House of Representatives has passed House Resolution 1, sending the sweeping budget reconciliation to the White House for President Donald Trump’s signature. While the bill touches nearly every part of the federal budget, the IAFF remained focused on defending and delivering for dues-paying members.
Key provisions in the final bill are expected to provide direct financial relief for fire fighters and emergency medical workers, including a new federal tax deduction on overtime pay and a long-sought increase to the cap on state and local tax (SALT) deductions. The IAFF also blocked proposed cuts to collective bargaining rights, pay, and pensions for 16th District members, which were advanced by certain Republican members of Congress.
“These wins are the result of staying focused on our mission and building strong relationships with the White House and Congressional allies on both sides of the aisle,” General President Edward Kelly said. “Whether you’re on the job and working grueling overtime hours, supporting a family in a high tax state, or enjoying retirement, nearly every dues-paying IAFF member can benefit from this bill.
“And just as importantly, we defeated serious threats to the rights and benefits of our brother and sister IAFF members who are federal fire fighters,” he continued.
OVERTIME
The bill includes a federal tax deduction of up to $12,500 on overtime pay for individuals earning up to $275,000. That number doubles to $25,000 for couples earning up to $550,000 who file jointly. Under the bill, members who work more than 53 hours per week — the threshold set for fire fighters by the Fair Labor Standards Act (FLSA) – would qualify for the deduction when filing their federal tax return.
The deduction begins this year and is set to expire in 2028. At least 80% of the IAFF’s U.S. members work a 53-hour schedule and are likely to qualify for financial relief under the new provision. Members not on a 53-hour schedule would need to work more than 212 hours in a 28-day cycle to be eligible.
SALT DEDUCTION
The bill also raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000. The change will bring substantial relief to members in high-tax states like California, New Jersey, New York, New England, and much of the Mid-Atlantic. In many of these areas, fire fighters and emergency medical workers are required to live in the communities they serve. A higher cap will help offset the cost of doing so.
The IAFF has pushed for SALT cap reform since the original deduction limit was enacted in 2017, highlighting its disproportionate impact on fire fighters at multiple Legislative Conferences in Washington, D.C. As reconciliation talks began, the IAFF worked closely with lawmakers from the most heavily affected states — including a coalition led by New York Republican Rep. Nick LaLota. Many of the provision’s supporters are members of the Republican Main Street Partnership, which the IAFF has supported for more than two decades.
“Our bona fides with both Senate and House Republicans helped push this issue over the finish line for IAFF members,” Kelly said.
These wins are the result of staying focused on our mission and building strong relationships with the White House and Congressional allies on both sides of the aisle.
General president Edward kelly
PROTECTING FEDERAL FIRE FIGHTERS
In addition to securing new tax relief, the IAFF worked with bipartisan allies to block proposals from certain Republican members of Congress that would have cut pay, pensions, and collective bargaining rights for federal fire fighters in the 16th District. These included changing the pension calculation from a high-three to a high-five average, increasing pension contributions without a raise in pay, and eliminating the special retirement supplement for those who retire before Social Security age.
“These proposals would have done real harm to our federal fire fighters,” said 16th District Vice President James B. Johnson. “The IAFF has worked to ensure no 16th District member has been adversely impacted by changes to the federal government, and that commitment extended to the reconciliation process.”
LOOKING AHEAD
The reconciliation bill sparked intense debate among members of both parties. But for the IAFF, the mission was clear.
“The IAFF doesn’t take a position on every bill or every single provision in large legislative packages,” said Kelly. “We stay focused on protecting the pay, benefits, and working conditions of our dues-paying members. That’s how we secured meaningful tax relief and protected the rights and benefits of our federal members.”
President Trump is expected to sign the bill into law on July 4. Once enacted, both the SALT cap increase and overtime deductions will apply to the current tax year and are set to expire in 2028 unless extended by Congress.
The IAFF will prioritize making these provisions permanent. The union is also working to make the overtime thresholds outlined in individual collective bargaining agreements eligible for the overtime deduction.
