What This Bill Does · Plain English
Summary · Congress.gov
Combating High Inflation Limiting Daycare Act of 2025 or the CHILD Act of 2025 This bill increases the maximum annual amount that may be contributed to a dependent care assistance program (generally known as a dependent care flexible spending account [FSA]). Under the bill, the maximum annual amount that may be contributed to a dependent care FSA increases from $5,000 ($2,500 for married taxpayers who file separate federal tax returns) to $10,000 ($5,000 for married taxpayers who file separate federal tax returns) and is adjusted annually for inflation.
Action Timeline
2025-01-15
Referred to the House Committee on Ways and Means.
2025-01-15
Introduced in House
2025-01-15
Introduced in House
Frequently Asked Questions
Did HR.413 pass?
HR.413 is still alive. Current stage: COMMITTEE. Pass likelihood: 33%.
What does HR.413 do?
Combating High Inflation Limiting Daycare Act of 2025 or the CHILD Act of 2025 This bill increases the maximum annual amount that may be contributed to a dependent care assistance program (generally known as a dependent care flexible spending account [FSA]). Under the bill, the maximum annual amount that may be contributed to a dependent care FSA increases from $5,000 ($2,500 for married taxpayers who file separate federal tax returns) to $10,000 ($5,000 for married taxpayers who file separate federal tax returns) and is adjusted annually for inflation.
Who sponsored HR.413?
HR.413 was sponsored by Stephanie I. Bice (R-Oklahoma).
Full Bill Text
119 HR 413 IH: Combating High Inflation Limiting Daycare Act of 2025 U.S. House of Representatives 2025-01-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 413 IN THE HOUSE OF REPRESENTATIVES January 15, 2025 Mrs. Bice (for herself, Ms. Sánchez , Mr. Feenstra , Ms. Houlahan , Mr. Moolenaar , Mr. Nunn of Iowa , Mr. Torres of New York , and Mr. Magaziner ) 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. 1. Short title This Act may be cited as the Combating High Inflation Limiting Daycare Act of 2025 or the CHILD Act of 2025 . 2. Increased maximum contribution to dependent care assistance programs (a) In general Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $5,000 ($2,500 and inserting $10,000 ($5,000 . (b) Cost-of-Living adjustment Section 129 of such Code is amended by adding at the end the following new subsection: (f) Inflation adjustment (1) In general Each dollar amount in this section shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. . (c) Removing deadwood Section 129(a)(2) of such Code is amended by striking subparagraph (D). (d) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2024.
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