H.R. 2670 — FIGHTER Act of 2025

This section establishes an exclusion from gross income for regular compensation (as defined in 37 U.S.C. 101) received by members of the Armed Forces for active service (as defined in 37 U.S.C. 101), effective for taxable years beginning after December 31, 2024. The exclusion does not apply to any such compensation received by an individual who served as a Member of Congress (i.e., Senator, Representative, Delegate, or Resident Commissioner) at any time during the 10-year period ending on the receipt date. This section also directs the Secretary of the Treasury to modify income tax withholding tables and procedures under IRC §3402(a) to account for the exclusion and makes a conforming amendment to the table of sections for IRC part III, subchapter B, chapter 1.

This section directs the United States DOGE Service (i.e., Department of Government Efficiency (DOGE)) to implement cost-saving initiatives that reduce federal expenditures by at least the amount of the reduction in federal revenues resulting from the amendments made by section 2.