Sen. Banks, Cortez Masto Introduce Bill to Expand Access to Clinical Trials

WASHINGTON, D.C. - Yesterday, Sen. Jim Banks (R-Ind.) and Sen. Catherine Cortez Masto (D-Nev.) introduced the Harley Jacobsen Clinical Trial Participant Income Exemption Act to exclude clinical trial participants' compensation from their taxable income.

Taxing the stipends and compensation that patients receive when they participate in clinical trials can discourage them from joining, because it erodes the value of the payments and may cause them to lose eligibility for safety-net programs. The bill removes those barriers, helping patients access potentially life-saving treatments while accelerating medical research.

Sen. Jim Banks (R-Ind.): "Americans who participate in clinical trials help develop lifesaving cures, and they shouldn't get hit with a tax bill. My legislation cuts taxes on clinical trial participants, reduces unnecessary bureaucracy, and makes it easier to bring new treatments to patients faster."

Sen. Catherine Cortez Masto (D-Nev.): "Patients deserve access to cutting-edge medical research, and we should be making it easier for them to access clinical trials," said Senator Cortez Masto. "This commonsense bill ensures that no one who is in the fight for their lives has to worry about being taxed on clinical trial reimbursements."

Key Provision of the Harley Jacobsen Clinical Trial Participant Income Exemption Act:

• Exclude compensation and reimbursements received for participating in approved clinical trials from taxable income.
• Ensure clinical trial payments are not counted as income or assets when determining eligibility for federal, state, or local assistance programs funded with federal dollars.
• Eliminate unnecessary reporting requirements for participants, caregivers, and organizations making clinical trial payments.
• Increase participation in clinical trials, particularly among low-income Americans, helping accelerate the development of new treatments and expanding access to experimental therapies.

Background:

Under current law, compensation received for participating in clinical trials is often treated as taxable income and can count against eligibility for means-tested federal assistance programs. As a result, many low-income Americans face a financial penalty for enrolling in clinical trials, limiting access to experimental, potentially lifesaving treatments and slowing the development of new medicines.

The Harley Jacobsen Clinical Trial Participant Income Exemption Act removes those barriers by excluding qualified clinical trial compensation from taxable income and ensuring those payments are not counted as income or assets when determining eligibility for federal, state, or local assistance programs funded with federal dollars. The legislation also eliminates unnecessary reporting requirements for participants and trial sponsors, making it easier for patients to enroll in clinical trials while helping researchers develop lifesaving treatments faster.

The legislation is supported by the Association of American Medical Colleges, the PAN Foundation, the Association of American Cancer Institutes, the STARR Coalition (Stakeholders in Treatment, Advocacy, Research and Recovery), and Mural Health.

Full bill text available here.

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