CHILD Act of 2025

House Bill

H.R. 413

119th Congress

CHILD Act of 2025

In Committee

Introduced:Jan 15, 2025

Primary Sponsor

Charles (Chuck) Marion Edwards

Representative

Republican

NC-11

Cosponsors

9

Quick Stats

Policy Area

Taxation

Summary

The Combating High Inflation Limiting Daycare Act doubles the maximum annual contribution to dependent care flexible spending accounts from 5,000 dollars to 10,000 dollars (2,500 to 5,000 for married filing separately). The limit will be adjusted annually for inflation. This helps families set aside more pre-tax dollars to pay for child care and dependent care expenses.

Latest Action

Referred to the House Committee on Ways and Means.

AI Summary

Plain-English explanation of this bill

The Combating High Inflation Limiting Daycare Act doubles the maximum annual contribution to dependent care flexible spending accounts from 5,000 dollars to 10,000 dollars (2,500 to 5,000 for married filing separately). The limit will be adjusted annually for inflation. This helps families set aside more pre-tax dollars to pay for child care and dependent care expenses.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Combating High Inflation Limiting Daycare Act of 2025 or the CHILD Act of 2025This bill increases the maximum annual amount that may be contributed to a dependent care assistance program (generally known as a dependent care flexible spending account [FSA]).Under the bill, the maximum annual amount that may be contributed to a dependent care FSA increases from $5,000 ($2,500 for married taxpayers who file separate federal tax returns) to $10,000 ($5,000 for married taxpayers who file separate federal tax returns) and is adjusted annually for inflation.

Key Points

Main provisions of the bill

Doubles dependent care FSA limit to 10,000 dollars
Applies to married filing separately at 5,000 dollars
Annual inflation adjustment
Increases pre-tax savings for child care
Addresses rising child care costs

How This Impacts Americans

Potential effects on citizens and communities

Child care costs have risen significantly, making the current 5,000 dollar FSA limit inadequate for many families. Doubling the limit allows families to shelter more income from taxes when paying for care. The inflation adjustment prevents the limit from eroding over time. This provides meaningful tax relief for working parents facing high child care expenses.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

413, 119th Congress (2025). "CHILD Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-413