I
119THCONGRESS
1
STSESSION H. R. 413
To amend the Internal Revenue Code of 1986 to index dependent care
assistance programs to inflation.
IN THE HOUSE OF REPRESENTATIVES
JANUARY15, 2025
Mrs. B
ICE(for herself, Ms. SA´NCHEZ, Mr. FEENSTRA, Ms. HOULAHAN, Mr.
M
OOLENAAR, Mr. NUNNof Iowa, Mr. TORRESof New York, and Mr.
M
AGAZINER) introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to index
dependent care assistance programs to inflation.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Combating High Infla-4
tion Limiting Daycare Act of 2025’’ or the ‘‘CHILD Act 5
of 2025’’. 6
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•HR 413 IH
SEC. 2. INCREASED MAXIMUM CONTRIBUTION TO DEPEND-1
ENT CARE ASSISTANCE PROGRAMS. 2
(a) I
NGENERAL.—Section 129(a)(2)(A) of the Inter-3
nal Revenue Code of 1986 is amended by striking ‘‘$5,000 4
($2,500’’ and inserting ‘‘$10,000 ($5,000’’. 5
(b) C
OST-OF-LIVINGADJUSTMENT.—Section 129 of 6
such Code is amended by adding at the end the following 7
new subsection: 8
‘‘(f) I
NFLATIONADJUSTMENT.— 9
‘‘(1) I
N GENERAL.—Each dollar amount in this 10
section shall be increased by an amount equal to— 11
‘‘(A) such dollar amount, multiplied by 12
‘‘(B) the cost-of-living adjustment deter-13
mined under section 1(f)(3) for the calendar 14
year in which such taxable year begins, deter-15
mined by substituting ‘calendar year 2023’ for 16
‘calendar year 2016’ in subparagraph (A)(ii) 17
thereof. 18
‘‘(2) R
OUNDING.—If any increase under para-19
graph (1) is not a multiple of $50, such increase 20
shall be rounded to the nearest multiple of $50.’’. 21
(c) R
EMOVINGDEADWOOD.—Section 129(a)(2) of 22
such Code is amended by striking subparagraph (D). 23
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•HR 413 IH
(d) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to calendar years beginning after 2
December 31, 2024. 3
Æ
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