PROMPT Act

House Bill

H.R. 5873

119th Congress

PROMPT Act

In Committee

Introduced:Oct 31, 2025

Primary Sponsor

Glenn Thompson

Representative

Republican

PA-15

Cosponsors

1

Quick Stats

Policy Area

Taxation

Summary

The Natural Disaster Tax Relief Act of 2023 aims to provide financial assistance to individuals impacted by major disasters that occurred in 2023. It allows people to withdraw up to $100,000 from their retirement accounts without penalty, lets them put that money back if they had to cancel home purchases or construction, increases the limit on disaster-related loans from retirement plans, and enhances tax deductions for personal losses from the disaster.

Latest Action

Referred to the House Committee on Ways and Means.

SponsorGlenn Thompson (R-PA)

Introduced10/31/2025

StatusReferred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce

ChamberHouse

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Vote Prediction

PROMPT Act

The Natural Disaster Tax Relief Act of 2023 aims to provide financial assistance to individuals impacted by major disasters that occurred in 2023. It allows people to withdraw up to $100,000 from their retirement accounts without penalty, lets them put that mo

Community Breakdown

Pass

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The Natural Disaster Tax Relief Act of 2023 aims to provide financial assistance to individuals impacted by major disasters that occurred in 2023. It allows people to withdraw up to $100,000 from their retirement accounts without penalty, lets them put that money back if they had to cancel home purchases or construction, increases the limit on disaster-related loans from retirement plans, and enhances tax deductions for personal losses from the disaster.

Bill Number: 5873
Sponsor: Glenn Thompson (R-PA)
Introduced: 10/31/2025
Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: PROMPT Act
Bill Number: 5873
Sponsor: Glenn Thompson (R-PA)
Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce
Introduced: 10/31/2025
Summary: The Natural Disaster Tax Relief Act of 2023 aims to provide financial assistance to individuals impacted by major disasters that occurred in 2023. It allows people to withdraw up to $100,000 from their retirement accounts without penalty, lets them put that money back if they had to cancel home purc

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The Natural Disaster Tax Relief Act of 2023 aims to provide financial assistance to individuals impacted by major disasters that occurred in 2023. It allows people to withdraw up to $100,000 from their retirement accounts without penalty, lets them put that money back if they had to cancel home purchases or construction, increases the limit on disaster-related loans from retirement plans, and enhances tax deductions for personal losses from the disaster.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Natural Disaster Tax Relief Act of 2023 This bill sets forth tax relief provisions for individual taxpayers for losses resulting from a major disaster occurring in 2023. Specifically, the bill <ul> <li> allows penalty-free disaster-relief withdrawals from tax-exempt retirement plans up to $100,000, </li> <li>permits recontributions of such withdrawals for home purchases or construction cancelled due to the disaster,</li> <li> increases to $100,000 the limit on loans for disaster assistance from retirement plans, and </li> <li>enhances the tax deduction for disaster-related personal casualty losses.</li></ul>

Key Points

Main provisions of the bill

Allows penalty-free withdrawals of up to $100,000 from retirement accounts for disaster relief
Permits recontributions of those withdrawals if home purchases or construction were cancelled due to the disaster
Increases the limit on disaster-related loans from retirement plans to $100,000
Enhances the tax deduction for personal casualty losses from the disaster

How This Impacts Americans

Potential effects on citizens and communities

This bill would directly benefit individuals who experienced losses from major disasters in 2023, helping them access their retirement savings and deduct personal losses without facing penalties. It could provide crucial financial support to affected households and communities as they recover from natural disasters.