Freedom for Families Act

House Bill

H.R. 74

119th Congress

Freedom for Families Act

In Committee

Introduced:Jan 3, 2025

Primary Sponsor

Andy Biggs

R - AZ

Cosponsors

1

Quick Stats

Policy Area

Taxation

Summary

This bill expands health savings accounts by removing the requirement to have a high-deductible health plan. HSA contribution limits increase to 9,000 dollars for individuals and 18,000 dollars for joint filers, up from current limits of around 4,300 and 8,550 dollars. The bill eliminates the extra contribution for those 55 and older. Importantly, HSA distributions become tax-free during qualified caregiving periods including parental leave, caring for sick family members, or handling military family emergencies.

Latest Action

Referred to the House Committee on Ways and Means.

Introduced1/3/2025

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

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Vote Prediction

Freedom for Families Act

This bill expands health savings accounts by removing the requirement to have a high-deductible health plan. HSA contribution limits increase to 9,000 dollars for individuals and 18,000 dollars for joint filers, up from current limits of around 4,300 and 8,550

Community Breakdown

Pass

0%

Fail

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0 predictions

This bill expands health savings accounts by removing the requirement to have a high-deductible health plan. HSA contribution limits increase to 9,000 dollars for individuals and 18,000 dollars for joint filers, up from current limits of around 4,300 and 8,550 dollars. The bill eliminates the extra contribution for those 55 and older. Importantly, HSA distributions become tax-free during qualified caregiving periods including parental leave, caring for sick family members, or handling military family emergencies.

Bill Number: 74
Introduced: 1/3/2025
Status: Referred to the House Committee on Ways and Means.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Freedom for Families Act
Bill Number: 74
Sponsor: No sponsor
Status: Referred to the House Committee on Ways and Means.
Introduced: 1/3/2025
Summary: This bill expands health savings accounts by removing the requirement to have a high-deductible health plan. HSA contribution limits increase to 9,000 dollars for individuals and 18,000 dollars for joint filers, up from current limits of around 4,300 and 8,550 dollars. The bill eliminates the extra

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill expands health savings accounts by removing the requirement to have a high-deductible health plan. HSA contribution limits increase to 9,000 dollars for individuals and 18,000 dollars for joint filers, up from current limits of around 4,300 and 8,550 dollars. The bill eliminates the extra contribution for those 55 and older. Importantly, HSA distributions become tax-free during qualified caregiving periods including parental leave, caring for sick family members, or handling military family emergencies.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Freedom for Families ActThis bill allows individuals to establish and contribute to a health savings account (HSA) without being enrolled in a high-deductible health plan (HDHP), increases HSA contribution limits, and allows tax-free distributions from an HSA during a period of qualified caregiving.Under current law, individuals may establish and contribute to an HSA if they are covered under an HSA-eligible HDHP. For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals who are at least 55 years old may make an additional HSA contribution of up to $1,000 per year. Further, under current law, HSA distributions are tax-free if used to pay for qualified medical expenses. The bill eliminates the HDHP coverage requirement for purposes of an HSA.The bill also increases the HSA annual contribution limit to $9,000 for individuals or $18,000 for joint filers (adjusted annually) and eliminates the additional contribution for individuals who are at least 55 years old.Finally, the bill excludes HSA distributions during a period of qualified caregiving from gross income. The bill defines period of qualified caregiving as any period during which an individual is on leave or not employed due to<ul><li>the birth or adoption of a child;</li><li>placement of a foster child;</li><li>caring for a family member with a serious health condition;</li><li>an inability to work due to a serious health condition; or</li><li>certain emergencies related to a spouse, child, or parent on covered active duty with the Armed Forces. </li></ul>

Key Points

Main provisions of the bill

Removes high-deductible plan requirement for HSAs
Increases HSA limits to 9,000 dollars individual, 18,000 dollars joint
Eliminates age 55+ catch-up contribution
Tax-free HSA distributions during caregiving periods
Covers parental leave, family care, and military emergencies

How This Impacts Americans

Potential effects on citizens and communities

For families: Expanded HSA access and caregiving flexibility. For individuals without HDHPs: New eligibility for HSAs. For new parents: Tax-free HSA use during parental leave. For caregivers: Financial support during family health crises. For military families: HSA access during deployment emergencies.

Policy Areas

Primary Policy Area

Taxation

Related Subjects

Bank accounts, deposits, capital

Health care costs and insurance

Income tax deductions

Income tax exclusion

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

74, 119th Congress (2025). "Freedom for Families Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-74

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