Official title: To provide targeted funding for States and other eligible entities through the Social Services Block Grant program to address the increased burden that maintaining the health and hygiene of infants and toddlers, medically complex children, and low-income adults or adults with disabilities who rely on adult incontinence materials and supplies place on families in need, the resultant adverse health effects on children and families, and the limited child care options available for infants and toddlers who lack sufficient diapers and diapering supplies, and for other purposes.
Introduced May 20, 2025 by Rosa L. Delauro · Last progress May 20, 2025
The bill reduces out‑of‑pocket costs and improves access to medically necessary diapers for low‑income families and people with disabilities, but it increases federal spending, imposes reporting/compliance burdens on states, nonprofits, and manufacturers, and may raise product costs or leave some coverage gaps.
Low-income families and parents will receive free diapers and diapering supplies through the federal program, reducing out‑of‑pocket child care costs.
People with disabilities and medically complex children/adults will gain access to medically necessary diapers and incontinence supplies, improving hygiene and health outcomes.
Individuals (age 3+) who need diapers can use pre-tax HSA/Archer MSAs and employer FSAs/HRAs to pay for medically necessary diapers and wipes, lowering their out‑of‑pocket costs.
Taxpayers will indirectly fund the program (roughly $200M/year FY2026–2029) and the tax-advantaged treatment reduces federal revenue slightly, increasing federal costs.
States must absorb new reporting, monitoring, and administrative duties (capped at 5%) and face SSBG supplement/not‑supplant constraints, which may strain state staff/resources and reduce local flexibility to meet needs.
Manufacturers and suppliers may incur costs to meet latex/allergen‑free and retail‑quality specifications, which could raise production costs and lead to higher prices or limited product availability for consumers.
Based on analysis of 3 sections of legislative text.
Directs increased SSBG funds and new appropriations to diaper and incontinence assistance and makes medically necessary diapers and supplies payable from HSAs/FSAs/HRAs/MSAs.
Provides dedicated federal funding and rules to expand diaper and incontinence product assistance for low-income families, children with medical needs, and adults with disabilities, and allows medically necessary diapers and related supplies to be paid for with HSAs, FSAs, HRAs, and Archer MSAs. Sets annual SSBG formula amounts and appropriates funds for fiscal years 2026–2029 while creating a pathway for states to distribute funds to qualified multi‑State nonprofit partners. Requires states to use any increase in their Social Services Block Grant allotments (resulting from a higher formula amount) for diaper and incontinence assistance, limits administrative use, permits payments to national nonprofits that distribute supplies, and adds medically necessary diapers and diapering supplies to the list of qualified medical expenses for tax-advantaged health accounts effective after December 31, 2025.