CHILD Act of 2025

This proposal, called the Combating High Inflation Limiting Daycare (CHILD) Act of 2025, raises how much families can put into a dependent care flexible spending account (FSA) to help pay for child care or care for other dependents. It doubles the yearly limit from $5,000 to $10,000 and then adjusts that limit each year for inflation so it keeps up with rising costs .

Key points

• Who is affected: People who use dependent care FSAs through their employer to pay for child care or care for other dependents.
• What changes: The maximum you can contribute goes from $5,000 to $10,000 per year (from $2,500 to $5,000 if married filing separately), with automatic yearly increases for inflation .
• When: The new limits would apply to calendar years starting after December 31, 2024.