This proposal would change federal tax rules so that diapers count as eligible medical expenses. It would let people use or be reimbursed from health savings accounts (HSAs), Archer MSAs, health flexible spending arrangements (FSAs), health reimbursement arrangements (HRAs), and dependent care FSAs to pay for diapers. The change also adjusts rules for limited-purpose accounts so they can cover diapers. Most tax changes apply to amounts paid or months beginning after December 31, 2024. The measure would also bar a State or local unit from imposing a sales and use tax on the retail purchase of diapers.
The text of the proposal includes findings that diapers are essential for baby health and hygiene; that diaper need can cause health and economic harm; that 46 percent of families with children age 4 or under reported struggling to get enough diapers; that 2 out of 3 families with diaper need are low income; that families spend about $945 to $1,500 per year on diapers for a child under 4; and that 25 percent of parents with diaper need reported missing work or school because they lacked diapers.
No publicly available information on the proposal's federal cost estimates or the fiscal impact on States or localities is included in the text.
The sponsors say diapers are an essential health and hygiene need for babies and toddlers. They cite health risks from diaper shortages, high diaper costs for families (about $945–$1,500 per year per child under 4), the high share of low-income families among those with diaper need, and impacts on parents' ability to work. The sponsors present the measure as a way to reduce diaper-related financial strain by allowing tax-advantaged accounts to cover diapers and by removing sales taxes on diaper purchases.
No publicly available information on formal opposition or objections appears in the proposal text.