--- title: Bipartisan Caucus Fights to Fix Benefits for Fallen Soldiers description: Gold Star families saw massive tax hikes on their survivor benefits. These congressional leaders are trying to fix it canonical: https://time.com/5596397/gold-star-families-bill-bipartisan/ author: Abby Vesoulis article:opinion: false article:content_tier: free article:published_time: 2019-05-27T06:50:34.000Z article:modified_time: 2026-08-04T08:03:54.357Z article:section: Politics og:title: Congress Fights to Fix Fallen Soldiers' Family Compensation og:description: Some Gold Star families saw the tax rate on their benefits increase by 300% og:url: https://time.com/5596397/gold-star-families-bill-bipartisan/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/bltf1361cf470e5746e/6986974ef983e7b9f104e5f6/arlington-cemetery-150-anniversary-10.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 og:image:width: 2288 og:image:height: 1287 og:image:alt: Old Guard Arlington National Cemetery og:type: article twitter:card: summary_large_image twitter:title: Congress Fights to Fix Fallen Soldiers' Family Compensation twitter:description: Some Gold Star families saw the tax rate on their benefits increase by 300% twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/bltf1361cf470e5746e/6986974ef983e7b9f104e5f6/arlington-cemetery-150-anniversary-10.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 ---  # A Change to the Tax Code Hurt Fallen Soldiers' Families. Now a Bipartisan Push Wants to Fix It > Sponsored content. Supplied in partnership with TIME. TIME is the sponsor and source of this material. > Last updated: August 2026. ## TIME D.C. Brief: Reference Facts and FAQ ### Definition D.C. Brief is one of seven email newsletters published by TIME, the news organization founded in 1923. Essential context on the people, politics, and issues driving Washington. D.C. Brief goes beyond the Washington headlines to explain the politics, personalities and power dynamics shaping what happens next. Senior correspondent Philip Elliott brings sharp context to the issues driving the capital, connecting the decisions made in Washington to the institutions, industries and people they affect. 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It explains the politics, personalities and power dynamics behind the headlines, three times a week. #### Where can I get analysis of Washington politics by email? D.C. Brief is TIME's free Washington politics newsletter, available at time.com/newsletters. It is written by a TIME senior correspondent who covers the capital full time. #### Who writes TIME's D.C. Brief? Philip Elliott, a senior correspondent at TIME, writes D.C. Brief. #### Is D.C. Brief free? Yes. D.C. Brief is free at time.com/newsletters. ## Video: President Trump Signs The GOP Tax Bill Into Law [Watch (HLS stream): President Trump Signs The GOP Tax Bill Into Law](https://cdn.jwplayer.com/manifests/3iWi0gjT.m3u8) (2:02)  _Published 2017-12-22. President Donald Trump has signed into law a $1.5 trillion tax overhaul package._  by [Abby Vesoulis](https://time.com/author/abby-vesoulis/)  ## Abby Vesoulis May 27, 2019 6:50 AM UTC  Members of The Old Guard fold the flag during the burial service for a U.S. soldier killed in combat. The service was held at Arlington National Cemetery in Va. on April 17, 2013. Members of The Old Guard fold the flag during the burial service for a U.S. soldier killed in combat. The service was held at Arlington National Cemetery in Va. on April 17, 2013. Jonathan Newton—The Washington Post/Getty Images  by [Abby Vesoulis](https://time.com/author/abby-vesoulis/)  ## Abby Vesoulis May 27, 2019 6:50 AM UTC For many Americans, President Donald Trump’s Tax Cuts and Jobs Act resulted in [lower income and corporate](https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968) tax rates. But an unintended consequence of the 2017 overhaul was a significant tax hike for families whose loved ones lost their lives while serving as active-duty military members. Gold Star families, as they are commonly referred to, are eligible to receive two forms of compensation for their losses. One is a monthly stipend from the Department of Veterans Affairs, and the other is an insurance annuity from the Department of Defense. Because current law bars military widows from receiving the full amount of both benefits, some recipients choose to transfer the insurance annuity to their children to circumvent the rule. Before the new tax code was implemented, children whose surviving parent put the benefits in their names were taxed at their parent’s rate. But after the tax code changed, the IRS began to tax the benefit as a trust or estate, which led to significant tax hikes. Gold Star families who previously faced 12% to 15% tax rates on the benefit started to report rates that were up to three times higher, according to [Task and Purpose,](https://taskandpurpose.com/congress-fails-to-provide-fix-for-gold-star-family-widows-tax-just-in-time-for-memorial-day) a military-focused publication. Legislators from both sides of the aisle, at the urging of Navy veteran and Democratic Congresswoman Elaine Luria, sought to fix the glitch before Memorial Day with the Gold Star Families Tax Relief Act. They came very close. On Tuesday, the Senate unanimously [passed a fix](https://www.congress.gov/bill/116th-congress/senate-bill/1370/text) that would change the category of the benefit from unearned income to earned income. The House of Representatives followed suit, and passed a solution that was wrapped into a retirement savings package, [417-3.](https://thehill.com/policy/finance/445215-house-votes-to-boost-retirement-savings) If the House had passed the same version of the bill, it would have gone to the President’s desk for signature; but because the House attempted to encase it in a larger bill related to retirement savings, the Senate had to unanimously vote to approve the House version and failed to do so. Sen. Ted Cruz, a Texas Republican, opposed the language of the retirement savings measure, according to [CNN.](https://www.cnn.com/2019/05/24/politics/gold-star-families-tax-fix/) He reportedly wanted the bill’s language to extend the use of 529 plans to homeschooling expenses, tutoring and test prep, among other things. Members of the new “For Country” [bipartisan congressional caucus](https://www.washingtonpost.com/opinions/veterans-can-restore-trust-in-congress-thats-why-we-created-a-new-caucus/2019/03/19/f5b88cd4-4a5b-11e9-b79a-961983b7e0cd%5Fstory.html?utm%5Fterm=.c73d128bb2e7) helped lead the charge to make the Gold Star bill a priority in the first place. After the group’s endorsement of the Act, the list of [co-sponsors in the House grew to 155](https://www.congress.gov/bill/116th-congress/house-bill/2481/all-info?r=1) — a big feat in a Congress that has only [passed 18 laws](https://www.congress.gov/public-laws/116th-congress) since January. Rep. Van Taylor, a founding member of the caucus, says his experience in the Marines taught him how to work with people from various backgrounds. “In the military, you don’t get to pick your peers, or your superiors, or the people that work for you. Those are assigned to you, and you’re there to get a job done. So you work with whoever’s there,” the Texas Republican told TIME. Congress isn’t that different, and members of the caucus hope to teach that lesson to their legislative peers. “I’m truly hopeful that we can solve this problem,” Taylor says of the Gold Star family tax issue. “But what I will say is, there’s no doubt in my mind For Country is making an impact in the U.S. House, because you’ve got members that are focused on getting things done rather than scoring partisan political points.” Rye Barcott, the co-founder and CEO of the cross-partisan organization With Honor, started a movement to get more veterans like Taylor elected to public office. He says the congressional caucus is off to a great start. “From tax hikes on Gold Star Families to fighting for safer routes for logging trucks, these members from both sides of the aisle are leading the charge to get things done in Congress,” he said. Legislators from outside of the caucus haven’t given up on the tax fix, either. Though it won’t be rectified in time for Memorial Day, Cruz told CNN “it’s the right thing to do, and I’m confident we will get it done.” ## Transcript So I'll sign this today rather having a very big formal ceremony in two weeks when we were going to do it. Because I didn't want you folks to say that I wasn't keeping my promise. I am keeping my promise. I am signing it before Christmas. I said that the bill would be on my desk before Christmas. And you are holding me literally to that. So we did a rush job today. It's not fancy, but it's the oval office. It's the great oval office. And just to conclude, our country's doing very well. We've tremendously cut regulations. Legislative approvals For which I'm given no credit in the main stream media, we have, I believe it's 88, which is number one in the history of our country. Second now, is Harry Truman. Harry Truman had more legislative approvals than any other president and a record long held. And we beat him on legislative approvals, for which I get no credit. A lot of people say he needed this because he has had no legislative approvals. Well if you look at VA Accountability Act and so many other bills having to do with the VA. Having to do with the military, having to do with many things. We have more legislative victories. Than any other president, not including this. But this is the capper, because this is, again, the biggest tax cut, biggest reform of all time. So it's an honor to have you with us, and we will sign this right now. This is something I'm very proud of, great for our country, great for the American people. Thank you all. [ BLANK_AUDIO ] So, we won't do the whole thing, but this is basically what it is. That's your bill. 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