GOP Lawmakers Propose Eliminating 'Victory Tax' on Team USA Medal Winnings

The TEAM USA Act aims to remove federal income taxes on Olympic and Paralympic medal prize money for all American athletes.

Published on Mar. 4, 2026

Got story updates? Submit your updates here. ›

A group of Republican lawmakers has introduced legislation that would eliminate federal income taxes on Olympic and Paralympic medal winnings for all American athletes, regardless of their income. The proposal targets what supporters call the 'victory tax,' which has long applied to some medalists' prize money.

Why it matters

For years, U.S. athletes who earned prize money for Olympic and Paralympic medals could face federal taxes depending on their income, a policy critics argue penalizes athletic success. The new bill seeks to remove that income threshold entirely, reviving a debate over how the tax code treats elite amateur athletes.

The details

The Tax Exemption for American Medalists Act, known as the TEAM USA Act, was introduced in the House by Republican Representative Mike Kelly of Pennsylvania and Republican Representative Michelle Fischbach of Minnesota. The legislation would amend the Internal Revenue Code of 1986 to remove the income limitation on excluding Olympic and Paralympic medal winnings from gross income. Under current law, medalists can exclude the value of their medals and associated prize money from federal income taxes only if their adjusted gross income is $1 million or less.

  • The TEAM USA Act was introduced in the House on March 2, 2026.
  • If enacted, the change would be retroactive to January 1, 2026.

The players

Mike Kelly

Republican Representative from Pennsylvania and co-lead sponsor of the TEAM USA Act.

Michelle Fischbach

Republican Representative from Minnesota and co-lead sponsor of the TEAM USA Act.

Got photos? Submit your photos here. ›

What they’re saying

“America's Olympians exemplify the spirit and greatness of our Nation. When our Olympians bring home the gold, they shouldn't be punished with a burdensome tax bill, as well. The TEAM USA Act rewards the hard work, success, and the American Dream.”

— Mike Kelly, Republican Representative from Pennsylvania (Press release)

“America is a nation built on the pursuit of greatness, and our Olympians and Paralympians are the ultimate proof of that spirit. When our athletes win, the whole country wins with them. We should be doing everything in our power to celebrate these victories. We are proud of these Americans, we are proud to be American, and we should never get tired of seeing our flag at the top of the mast.”

— Michelle Fischbach, Republican Representative from Minnesota (Press release)

What’s next

The bill will next be considered by the House Ways and Means Committee, where members may hold hearings or request further analysis before deciding whether to advance it. Any movement on the TEAM USA Act would occur against a broader backdrop of tax policy debates in Congress, as lawmakers weigh which provisions to extend, revise, or repeal in the current session.

The takeaway

This proposal to eliminate the 'victory tax' on Olympic and Paralympic medal winnings reflects an ongoing debate over how the tax code should treat elite amateur athletes and their success on the world stage. Supporters argue the current income threshold creates unequal treatment, while opponents may raise concerns about the potential revenue impact of such a change.