Public Safety Retirees Healthcare Protection Act of 2025

This bill aims to enhance financial benefits for retired public safety officers by increasing the tax exclusion for certain healthcare-related distributions. Specifically, it amends the Internal Revenue Code of 1986 to allow a greater portion of governmental retirement plan distributions, when used for health and long-term care insurance premiums, to be excluded from gross income. The current exclusion limit of $3,000 would be raised to $6,000 , effectively doubling the tax-free amount for these specific expenses. This provision is designed to provide additional financial relief for public safety retirees covering their health and long-term care costs. The increased exclusion would take effect for distributions occurring in taxable years beginning after December 31, 2025.