What does Preamble of Improving Diaper Affordability Act of 2025 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to treat diapers as qualified medical expenses; and to prohibit States and local governments to impose a tax on the retail sale of diapers,' aims to modify the Internal Revenue Code. The bill proposes treating diapers as qualified medical expenses. It also seeks to prevent states and local governments from imposing taxes on the retail sale of diapers.

What does SHORT TITLE. of Improving Diaper Affordability Act of 2025 do?

This bill is formally titled the Improving Diaper Affordability Act of 2025.

What does FINDINGS. of Improving Diaper Affordability Act of 2025 do?

This section outlines findings related to diaper need among families with young children. It states that diapers are an essential need for the health and hygiene of babies and toddlers. The text indicates that families lacking adequate access to diapers face increased health risks for their children and potential maternal mental health concerns. Approximately 46 percent of families with children age 4 or below struggle to provide necessary diapers, a rise from 1 in 3 before the COVID-19 pandemic. Low-income families, disproportionately Black or Latino, constitute the majority of those experiencing diaper need. Families spend a significant amount annually on diapers, with low-income families spending a larger proportion of their income on these costs. Diaper need can negatively impact a family's economic security, potentially leading to cuts in food purchases and savings. Parents and caregivers experiencing diaper need sometimes miss work or school due to lack of diapers, resulting in lost income. Currently, no permanent state or federal child safety-net program specifically allocates funds for diaper purchases.

What does INCLUSION OF DIAPERS AS QUALIFIED MEDICAL EXPENSES. of Improving Diaper Affordability Act of 2025 do?

This section amends the Internal Revenue Code to include diapers as qualified medical expenses for various tax-advantaged accounts. Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs) will treat diaper expenses as medical care, effective for amounts paid after December 31, 2024. Health Flexible Spending Arrangements and Health Reimbursement Arrangements will also treat diaper expenses as medical care, effective for expenses incurred after December 31, 2024. Dependent Care Assistance and Dependent Care Flexible Spending Arrangements will include diaper expenses within the definition of qualifying expenses. Limited Purpose HSAs and HRAs are amended to allow coverage for expenses, including diapers, without disqualifying the arrangement. The changes apply to amounts paid or expenses incurred after December 31, 2024, with specific effective dates for different account types.

What does PROHIBITION OF RETAIL SALES TAXES. of Improving Diaper Affordability Act of 2025 do?

This section prohibits states and local governments within states from imposing sales and use taxes on the retail purchase of diapers.

Back to bills

Improving Diaper Affordability Act of 2025

Last updated: 4/30/2025 · Introduced: 4/30/2025

Author: Bonnie Watson Coleman (D-NJ)

TL;DR (AI)

The bill modifies the Internal Revenue Code to allow taxpayers to use Health Savings Accounts, Archer Medical Savings Accounts, Health Flexible Spending Arrangements, and Health Reimbursement Arrangements to pay for diapers.
It expands the definition of qualifying expenses within Dependent Care Assistance and Dependent Care Flexible Spending Arrangements to include diaper purchases.
The bill prevents states and local governments from imposing sales or use taxes on the retail sale of diapers.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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