Sponsors (3)
The bill reduces diaper-related financial and health burdens for low-income families and people with incontinence by funding free distribution and expanding tax-advantaged purchases, but it increases federal costs and creates new administrative, reporting, and coordination burdens for states, providers, and employers.
Low-income parents and caregivers will receive free diapers and diapering supplies through a federally funded distribution program, lowering out-of-pocket childcare costs.
People with incontinence or medical conditions (age 3+) — including children, adults with disabilities, and many seniors — can use HSAs/MSAs/FSAs/HRAs to buy diapers and wipes, reducing their direct medical and caregiving expenses.
Medically complex children and adults who gain access to diapers and supplies are likely to experience improved hygiene and fewer skin infections and related healthcare needs.
The $200 million per year appropriation increases federal outlays and could widen the deficit or crowd out other priorities if not offset.
Allowing tax-advantaged accounts to cover diapers reduces tax revenue (increases tax expenditures), modestly raising long-term federal revenue needs or deficit pressure.
States will face new administrative burdens, compliance tasks, and potential costs to run the distribution program and fulfill reporting requirements.
Based on analysis of 3 sections of legislative text.
Directs new SSBG funding and annual appropriations to diaper and adult incontinence assistance and makes medically necessary diapers and supplies eligible for HSAs/FSAs/HRAs/MSAs after Dec 31, 2025.
Provides new federal funding and program rules to help pay for diapers and adult incontinence supplies and adds medically necessary diapers and related supplies as eligible expenses for tax-advantaged health accounts. It raises the federal baseline for the Social Services Block Grant for FY2026–FY2029 and directs the incremental funds to state diaper-assistance activities, authorizes annual appropriations to support distribution, technical assistance, and an evaluation, and changes Internal Revenue Code rules so HSAs, MSAs, FSAs, and HRAs can cover medically necessary diapers and diapering supplies for expenses after December 31, 2025.
Introduced May 20, 2025 by Tammy Duckworth · Last progress May 20, 2025