Emergency Relief for Federal Contractors Act of 2025
In Committee
Introduced:Oct 8, 2025
Primary Sponsor
Debbie Dingell
Representative
Democratic
MI-6
Cosponsors
1
Quick Stats
Policy Area
Taxation
Summary
This bill allows people to use money from their health savings accounts (HSAs) to pay for medical expenses that happened before they opened their HSA, as long as they opened the HSA within 60 days of starting their health insurance plan. This gives people more flexibility to use their HSA funds.
Latest Action
Referred to the Subcommittee on Health.
AI Summary
Plain-English explanation of this bill
This bill allows people to use money from their health savings accounts (HSAs) to pay for medical expenses that happened before they opened their HSA, as long as they opened the HSA within 60 days of starting their health insurance plan. This gives people more flexibility to use their HSA funds.
Last updated: 12/29/2025
Official Summary
Congressional Research Service summary
<p><strong>Advancing Health Savings Act of 2023</strong></p><p>This bill excludes from taxable income any distributions from a health savings account (HSA) used to pay qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under a high-deductible health plan (HDHP).</p><p>Under current law, distributions from an HSA established in connection with a HDHP are excluded from taxable income if used to pay qualified medical expenses incurred on or after the date that the HSA is established. However, under current law, HSA distributions are taxable if used to pay otherwise qualified medical expenses incurred after enrolling in an HDHP but before establishing an HSA.</p><p>Under the bill, an HSA that is established within 60 days of the first day of coverage under an HDHP is treated as being established on the first date that coverage begins under the HDHP. </p>
Key Points
Main provisions of the bill
Lets people use HSA funds to pay for medical expenses incurred before the HSA was opened, as long as the HSA was opened within 60 days of starting their health plan
Current law does not allow this, and HSA distributions are taxable if used for expenses before the HSA was opened
The bill treats the HSA as being opened on the first day of the health plan coverage, as long as it was opened within 60 days
How This Impacts Americans
Potential effects on citizens and communities
This bill would benefit people with high-deductible health plans who need to access their HSA funds to pay for medical expenses right away, even if they haven't opened the HSA account yet. It gives them more flexibility and control over their healthcare spending.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
5690, 119th Congress (2025). "Emergency Relief for Federal Contractors Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-5690
