Us Congress 2025-2026 Regular Session

Us Congress House Bill HB74

Introduced
1/3/25  

Caption

Freedom for Families ActThis bill allows individuals to establish and contribute to a health savings account (HSA) without being enrolled in a high-deductible health plan (HDHP), increases HSA contribution limits, and allows tax-free distributions from an HSA during a period of qualified caregiving.Under current law, individuals may establish and contribute to an HSA if they are covered under an HSA-eligible HDHP. For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals who are at least 55 years old may make an additional HSA contribution of up to $1,000 per year. Further, under current law, HSA distributions are tax-free if used to pay for qualified medical expenses. The bill eliminates the HDHP coverage requirement for purposes of an HSA.The bill also increases the HSA annual contribution limit to $9,000 for individuals or $18,000 for joint filers (adjusted annually) and eliminates the additional contribution for individuals who are at least 55 years old.Finally, the bill excludes HSA distributions during a period of qualified caregiving from gross income. The bill defines period of qualified caregiving as any period during which an individual is on leave or not employed due tothe birth or adoption of a child;placement of a foster child;caring for a family member with a serious health condition;an inability to work due to a serious health condition; orcertain emergencies related to a spouse, child, or parent on covered active duty with the Armed Forces. 

Impact

The proposed changes would modify existing regulations by permitting individuals to withdraw funds from their HSAs without facing tax liabilities if those funds are used to cover medical expenses or caregiving-related costs during periods of qualified leave. Additionally, the bill eliminates the requirement for individuals to be enrolled in a high-deductible health plan to contribute to an HSA, potentially broadening access to these accounts for more families and caregivers. Overall, this legislation is designed to improve the financial security of families managing health-related crises.

Summary

House Bill 74, titled the 'Freedom for Families Act,' proposes amendments to the Internal Revenue Code of 1986, specifically aimed at enhancing flexibility in the use of health savings accounts (HSAs) during family or medical leave. The bill allows for tax-advantaged distributions from HSAs to cover costs during periods of caregiving, thereby providing financial support to individuals who may be temporarily out of work due to personal or family health issues. This adjustment seeks to alleviate some financial stress on families during crucial times of need.

Contention

While proponents argue that this bill will provide necessary support to caregivers and families, critics may express concerns about the fiscal implications of increased withdrawals without corresponding checks on spending. The essence of the debate revolves around balancing the need for aid during family health crises and ensuring the financial sustainability of HSAs as a useful tool for health care savings. As this bill moves through the legislative process, discussions around its budgetary impacts and potential reach will likely dominate the conversation.

Congress_id

119-HR-74

Policy_area

Taxation

Introduced_date

2025-01-03

Companion Bills

No companion bills found.

Previously Filed As

US HB107

Freedom for Families Act This bill modifies requirements for health savings accounts (HSAs) to (1) exclude from gross income HSA distributions paid or distributed during a period of qualified caregiving, (2) allow participation in an HSA without enrollment in a high deductible health plan, and (3) increase the contribution limit for HSAs.

US HB5709

To amend the Internal Revenue Code of 1986 to allow individuals entitled to Medicare Part A to make contributions to health savings accounts.

US HB127

Protection from Obamacare Mandates and Congressional Equity Act This bill alters provisions relating to the requirement to maintain minimum essential health care coverage (i.e., the individual mandate), as well as provisions relating to health care coverage for certain executive branch and congressional employees. Specifically, the bill exempts individuals from the requirement to maintain minimum essential health care coverage if they reside in a county where fewer than two health insurers offer insurance on the health insurance exchange. Under current law, there is no penalty for failing to maintain minimum essential health care coverage. The bill also requires certain executive branch and congressional employees to participate in health insurance exchanges. Under current law, Members of Congress and their designated staff are required to obtain coverage through health insurance exchanges, rather than the Federal Employee Health Benefits (FEHB) Program. Current regulations authorize government contributions toward such coverage and require Members of Congress to designate which members of their staff are required to obtain coverage through an exchange. The bill requires all congressional staff, including employees of congressional committees and leadership offices, to obtain coverage through an exchange. The bill also prohibits Members of Congress from having the discretion to determine which of their employees are eligible to enroll through an exchange. Further, the President, Vice President, and executive branch political appointees must also obtain coverage through exchanges, rather than FEHB. The government is prohibited from contributing to or subsidizing the health insurance coverage of the officials and employees subject to this requirement, including Members of Congress and their staff.

US HB312

Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.

US SB5641

A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for qualified conservation contributions which include National Scenic Trails.

US HB5317

To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.

US HB7693

To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.

US SB5511

A bill to amend the Older Americans Act of 1965 to provide additional opportunities for older individuals to volunteer at facilities that serve older individuals or individuals in younger generations, and for other purposes.

US HB109

This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.

US HB313

Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.

Similar Bills

No similar bills found.