In the wake of a recent $600 million settlement reached by Norfolk Southern in the class action lawsuit related to the train derailment in East Palestine, lawmakers in Pennsylvania have introduced a new bill to protect residents in the common wealth from losing it.

The bill would provide a state tax deduction for Pennsylvanians who receive payments from the settlement.

"Ohio has already established a deduction for their residents who received payments and I believe it's fair to do the same for Pennsylvanians," said state Sen. Doug Mastriano, who co-sponsored the bill. "Businesses have been shuttered, property values have plummeted and personal medical expenses continue to accrue. This tax deduction will help put more money back into the pockets of the victims."

The proposed bill would provide a state income tax deduction for disaster relief payments given to Pennsylvania residents by a government agency, Norfolk Southern or an insurer as the result of the derailment.

It would also be retroactive to any payments received by victims in 2023.

The bill has been referred to the Senate Finance Committee for consideration.