Several of my clients received settlements from the California PG&E Fire Victims Trust in 2022.

I know that these settlements are normally taxable, but the California Legislature passed AB1249 and SB1246 to exclude the settlement money from gross income for California income tax purposes. I did read that bipartisan legislation (Thompson/LaMalfa) was introduced to exclude these settlements also from federal taxation. I can't find if this has this been resolved? I appreciate any advise on this issue regarding reporting or not reporting as income. Clients attorney told them if you don't get a 1099, it's not taxable, which is questionable? If reporting as income I understand that attorney's fees also should be included as income. Try to explain that!