Senator Ron Wyden reacts to new federal tax exemption passed as Oregon faces record wildfire season

BEND, Ore. (KTVZ) -- The Doug LaMalfa Federal Disaster Tax Relief Certainty Act passed the U.S. Senate, providing a tax exemption for wildfire survivors as Oregon faces its worst wildfire season in modern history. The legislation allows qualified relief payments to be excluded from federal taxable income, including funds received years after a disaster.

The measure addresses a loophole where wildfire relief payments can create a federal tax burden for survivors attempting to rebuild. This legislation comes as Oregon continues to battle active wildfires during a 2026 season cited as the state's most devastating in modern history.

Sen. Ron Wyden, D-Oregon, has advocated for the legislation for several years. He noted that wildfire survivors often face unexpected financial hits from the government following a disaster. “Well that's it. I mean, think about it,” Wyden said. “You've been hit by this wrecking ball in terms of these huge fires, some of them coming out of nowhere. And then you turn around and you get hit by another big burden of big tax burden from the federal government. Enough is enough. And I've been able to get it fixed now and will be signed by the president.”

The legislation has spent years working through Congress before reaching this stage. When asked about the lengthy process in the Senate, Wyden indicated that getting relief passed required a long-term push. “Well, you're being logical and heaven forbid that logic should break out in the Senate,” Wyden said. “But I've been pushing this for a long time. And finally, now we're getting real relief.”

Beyond tax relief, Wyden emphasized that Congress must ensure fire crews have adequate resources to fight ongoing blazes. Oregon is currently contending with multiple active wildfires and the senator indicated that funding for crews is necessary for both current and future seasons.

The bill awaits a signature from the president to be enacted into law.