H.R. 1985 – Family Savings for Kids and Seniors Act

AI-Generated Summary

Updated April 14, 2026 at 3:30 AM UTC

The Family Savings for Kids and Seniors Act would raise the amount of dependent‑care assistance that employees can receive from their employers tax‑free. It updates the $5,000 limit in the tax code to grow with inflation and ties the $2,500 employee contribution limit to the same inflation‑adjusted figure. The changes would apply to anyone who gets employer‑provided dependent‑care benefits, starting with tax years after 2019.

Key Provisions

Adds a new rule that the $5,000 tax‑free limit for employer‑provided dependent‑care assistance will be increased each year by the cost‑of‑living adjustment, using 1986 as the base year.
Changes the $2,500 employee contribution limit to be “half such dollar amount,” meaning it will also rise with inflation alongside the $5,000 limit.
Sets the new limits to take effect for taxable years beginning after December 31, 2019.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 28, 2019

View full timeline

HouseIntro Referral

Introduced in House

March 28, 2019

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 28, 2019

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued March 28, 2019

I

116th CONGRESS

1st Session

H. R. 1985

IN THE HOUSE OF REPRESENTATIVES

March 28, 2019

Ms. Porter (for herself and Ms. Herrera Beutler) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the exclusion for employer-provided dependent care assistance including the limitation on dependent care flexible spending arrangements.

1.

Short title

This Act may be cited as the Family Savings for Kids and Seniors Act.

2.

Increase in exclusion for employer-provided dependent care assistance including dependent care flexible spending arrangements

(a)

Increase To take into account inflation since 1986

Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(D)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2019, the $5,000 amount in subparagraph (A) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 1986 for calendar year 2016 in subparagraph (A)(ii) thereof.

If any increase determined under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

.

(b)

Conforming amendment

Section 129(a)(2)(A) of such Code is amended by striking $2,500 and inserting half such dollar amount.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2019.