Sponsors (7)
The bill expands access to diapers and incontinence supplies and lowers out-of-pocket costs for many through direct funding and tax-advantaged reimbursements, but it increases federal spending and imposes administrative constraints and eligibility limits that may reduce program flexibility and leave some low-income people without benefit.
Low-income families, children, parents, low-income adults, and people with disabilities will face lower out-of-pocket costs for diapers and incontinence supplies through a combination of direct free distribution (FY2026–FY2029) and tax-free reimbursement for medically necessary diapers.
State governments and nonprofits will receive approximately $200 million per year (FY2026–FY2029) to expand diaper and incontinence assistance programs, increasing resources available to serve families and individuals in need.
Caregivers (including parents and those caring for people with disabilities) can use tax-advantaged accounts (HSAs/FSAs/HRAs/Archer MSAs) to pay for medically necessary diapers and related supplies (wipes, creams), reducing routine caregiving expenses for eligible users.
State governments and nonprofit providers will face added administrative strain and reduced flexibility because administrative funds are capped at 5%, detailed reporting (including ZIP-level counts) is required, some funds are reserved for national technical assistance/evaluation, and unspent funds must generally be used within the fiscal year or the next—potentially limiting program effectiveness
Taxpayers will bear an additional federal cost of about $200 million per year for FY2026–FY2029 to fund the program.
Low-income families who do not have access to employer-based HSAs/FSAs/HRAs (or who cannot use HSA-linked accounts) may not benefit from the new tax-advantaged reimbursement, leaving some vulnerable households without relief.
Based on analysis of 3 sections of legislative text.
Increases SSBG funding and appropriations for FY2026–29 for diaper/incontinence assistance and lets HSAs/FSAs/HRAs cover medically necessary diapers and related supplies.
Increases federal support for diaper and incontinence supplies by raising Social Services Block Grant (SSBG) funding for FY2026–FY2029, directing states to use the added funds for diaper assistance and community distribution, and appropriating $200 million annually for those years. It also changes tax rules so medically necessary diapers and related supplies are eligible expenses under HSAs, Archer MSAs, FSAs, and HRAs beginning for amounts/expenses after December 31, 2025. The bill sets aside a small portion of the appropriation for national technical assistance and an evaluation, defines eligible national nonprofit partners, requires states to consult stakeholders before distributing funds to community providers, and defines “medically necessary” diapers and diapering supplies for tax-advantaged account reimbursement purposes.
Introduced May 20, 2025 by Rosa L. Delauro · Last progress May 20, 2025