WASHINGTON – U.S. Sen. Charles Schumer announced on Friday the passage of bipartisan legislation that will prevent the Internal Revenue Service from taxing Olympic and Paralympic athletes on medals or other prizes awarded to them in Rio de Janeiro and in future Olympic and Paralympic games.

The legislation has been passed by the Senate and the House of Representatives, and now it heads to President Barack Obama for final approval.

In August, Schumer held a press conference at the Lake Placid Olympic Training Center to say the U.S. shouldn’t tax the winnings of Olympic medalists. A group of Lake Placid-based Olympians and Olympic-hopefuls stood behind him, including several medalists.

The Senate bill Schumer presented is dubbed the USA Olympians and Paralympians Act, and companion legislation was presented earlier this year as well in the House. It would make Team USA athletes with an adjusted gross income of $1 million or less exempt from taxes on medals or prize money received from the United States Olympic Committee on account of prizes awarded to them during the Olympic or Paralympic Games.

Citing a 2014 report by NBC News, Schumer said the USOC awards cash prizes to medal winners when they place in Olympic events: $25,000 for gold, $15,000 for silver and $10,000 for bronze. However, because the money is considered “earned income abroad,” the monetary value of the Olympic medal is therefore subject to federal taxation.

Schumer said the bill will not affect taxes on potential endorsement or sponsorship income earned by Olympic athletes.

“Now that Congress has passed this legislation, our Olympic and Paralympic athletes can continue to break world records without worrying about breaking the bank,” Schumer said in a press release Friday.