Bill · H.R. 74· House(119-HR-74)
Freedom for Families Act
- Introduced
- 1/3/2025
- Last activity
- 1/3/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Andy Biggs
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Freedom for Families Act aims to amend the Internal Revenue Code of 1986 regarding health savings accounts. It seeks to allow tax-advantaged distributions from these accounts during periods of qualified caregiving. This includes times when individuals are on leave or unemployed due to specific situations under the Family and Medical Leave Act of 1993. Additionally, the bill proposes removing the requirement for a high deductible health plan to have a health savings account. Finally, it includes an increase in the contribution limit for these accounts to $9,000, or twice that amount for joint returns.
Yes· 3 of 12
Would middle-income households be better off under this?+5
Higher contribution limits and flexible distributions provide significant tax advantages for middle-income families.
Would high-income households be better off under this?+4
The increase in contribution limits allows high earners to shield more income from taxes through HSAs.
Does this make health care easier to get in general?+4
The bill makes it easier to use HSA funds for medical expenses during caregiving leave or unemployment.
The opposite
Does this reduce what the federal government spends?-2
Increasing HSA contribution limits and tax-advantaged distributions may reduce federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax-advantaged distributions during leave: Individuals can have amounts paid or distributed from a health savings account without including them in gross income if they are during a period of qualified caregiving. This applies to periods when an individual is on leave or not employed due to situations described in the Family and Medical Leave Act of 1993. (Section 2)
-
Increased contribution limits: The bill increases the contribution limit for health savings accounts to $9,000, or twice that amount in the case of a joint return. (Section 3)
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Removal of insurance requirements: The bill amends the code to strike the requirement that an individual must be an eligible individual for a high deductible health plan during the taxable year to utilize these accounts. (Section 3)
Potential Negative Impacts for People
- Taxation of non-qualified distributions: Any amount paid or distributed from a health savings account will be included in the gross income of the account beneficiary if it is not used for qualified medical expenses or distributed during a period of qualified caregiving. (Section 2)
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For High Income Households+4Good For Low Income Households+3Good For Women+3Good For Retirees+2Good For Young Adults+2
- Healthcare
- Improves Healthcare Access+4Increases Affordable Care Act Support+3
- Social Issues And Justice
- Improves Childcare Affordability+2Improves Poverty Reduction+2
- Economy And Finance
- Reduces Middle Class Taxes+4Reduces Small Business Taxes+1Reduces Government Spending-2
- 1/3/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Eric BurlisonRepublican · Missouri