The Lejeune Untaxed Compensation and Settlements Act of 2025 proposes to amend the Internal Revenue Code of 1986, specifically Section 104(a). Its primary objective is to exclude certain damages from an individual's gross income for federal tax purposes. This legislation clarifies that any financial compensation or damages received through legal actions initiated under the Camp Lejeune Justice Act of 2022 will not be considered taxable income. The bill aims to provide tax relief to individuals awarded settlements or judgments related to the water contamination at Camp Lejeune. These new provisions will take effect for all applicable damages received after the bill's enactment date.