Honoring Civil Servants Killed in the Line of Duty Act

This legislation, titled the "Honoring Civil Servants Killed in the Line of Duty Act," significantly enhances and expands death gratuities for federal employees. It establishes a new, permanent death gratuity of $100,000 , adjusted annually for inflation, for federal employees whose deaths result from injuries incurred in connection with their employment, criminal acts, terrorism, or natural disasters. This gratuity is paid by the employing agency, provided the death was not due to willful misconduct, intent to self-harm, or intoxication. The bill clarifies the definition of an eligible employee and establishes a clear order of precedence for beneficiaries, starting with a designated individual, then the surviving spouse, children, parents, and finally the estate. Importantly, all payments made under this new gratuity are explicitly deemed not includible in the recipient's gross income for tax purposes. The provisions extend this new gratuity to employees of the Federal Aviation Administration (FAA), certain Transportation Security Administration (TSA) personnel, and Veterans Health Administration (VHA) employees. Beyond the new gratuity, the bill substantially increases the maximum federal contribution for funeral expenses from $800 to $8,800 , also subject to annual inflation adjustments, and makes these payments tax-exempt. It further amends existing law to ensure that death gratuities for federal employees killed in connection with military service and for Foreign Service personnel who die abroad are also indexed for inflation and are not subject to federal income tax. These existing gratuities are also subject to offsets if other federal benefits are received. Finally, the legislation includes a mechanism for emergency supplemental appropriations, authorizing additional funds for agencies if a natural disaster, act of terrorism, or other incident leads to costs for these gratuities that exceed available agency budgets. All amendments and new provisions in this Act apply to any death occurring on or after the date of its enactment, ensuring immediate impact for affected families.