The Harley Jacobsen Clinical Trial Participation Income Exemption Act

Clinical research is a public necessity and those who contribute are performing a crucial public service.
So, why are we making it harder for people to contribute?

Clinical trial participants should never be taxed for their contributions to science. The Harley Jacobsen Act would make all clinical trial compensation tax-exempt, removing a key disincentive for participation and ensuring equitable access. Trial participants should be supported—not penalized—for helping bring new treatments to life.

Existing U.S. tax rules, unintentionally, prevent more than 100 million Americans from participating in clinical trials (~27% of the U.S. population). Payments made to clinical trial participants are considered income and must be reported to the IRS, which threatens to disqualify patients from receiving critical benefits from a social welfare program (Medicaid, SNAP, etc). This prevents low-income participants from enrolling in or completing a trial.

UPDATE: In June 2025, The Harley Jacobsen Clinical Trial Participation Income Exemption Act was reintroduced to Congress. Initiated by Mural Health and co-sponsored by State Representative Mike Kelly of Pennsylvania’s 16th District and State Representative Chrissy Houlahan of Pennsylvania’s 6th District, the bill seeks to eliminate taxes from all payments made to all participants in all clinical trials.

What began as a letter to Congress in October 2023 drafted by Mural Health’s co-founder and CEO, Sam Whitaker, has grown into a national legislative effort to make clinical trials more accessible and equitable. In February 2024, the Harley Jacobsen Act was officially introduced to Congress. In June 2025, the bill was reintroduced to the new Congress – this time with even stronger protections to ensure participants don’t lose state-administered welfare benefits when receiving clinical trial payments. Not every bill gets re-introduced to a New Congress, but this one did – a clear sign of both the widespread support behind it and the urgent need for change.

The Harley Jacobsen Clinical Trial Participant Income Exemption Act aims to:

    • Eliminate the reporting requirements for both the patient/caregiver and the 1099 reporting requirement of the payor. This will protect participants who rely on social welfare programs such as SNAP, WIC, and others from exceeding income requirements.

    • Increase diversity of the enrolled-patient populations across all trials, aligning with the strategic goals of the NIH and FDA.

    • Provide greater access to experimental therapies to the least-empowered Americans (those with disabilities, minority populations, chronic physical illness, low-income populations, low-education level, etc.).

Too often, clinical trials are a financial burden on people searching for lifesaving treatment. We can change that.

———————————————————————————

Why Are We Supporting the Harley Jacobsen Act over the Clinical Trial Modernization Act?

The Clinical Trial Modernization Act limits the amount excluded from gross income to $2,000.

Psychiatry trials are the highest paid trials with larger than average payments and larger completion bonuses due to the nature of these studies, including in-patient study requirements.

Not only would the Clinical Trial Modernization Act not help with psychiatry trial participation, but it could actually hurt these trials by potentially causing the payments to be reduced.

———————————————————————————

.

Further Information & Resources

 

 

What Can YOU Do To Support The Harley Jacobsen Act?

Take immediate action to support the Harley Jacobsen Act:

Contact Your Legislators:

Reach out directly to your representatives to express support.

Join Advocacy Efforts:

Sign the petition on Change.orgto show your support for the Harley Jacobsen Act. Share the petition with your network and colleagues.

Sign on the Mural Health website, supporting the Harley Jacobsen Act.

Participate in campaigns led by patient advocacy groups and industry coalitions.

Spread Awareness:

Utilize social media platforms, community meetings, and professional networks to highlight the HJ Act’s importance.

Progress in mental health research doesn’t just happen—it’s driven by people like you. If you believe in protecting access, accelerating innovation, and breaking down barriers for those living with serious mental illness, show your support and lend your voice.

This is a long process, but well worth the effort.

The more support we rally, the sooner we can enact change.