H.R. 3508 — End Diaper Need Act of 2025

This section increases the amount deemed available under the Social Services Block Grant (SSBG) program—i.e., flexible formula grants to states for social services benefiting low-income children and adults—to $1.9 billion for FY2026 through FY2029 (from $1.7 billion) and appropriates $200 million annually for that period from general Treasury funds to cover the increase. Requires each state to use its share of the increased funding, in consultation with stakeholders, to provide diaper assistance—including free distribution of diapers, diapering supplies, medically necessary diapers, and adult incontinence materials and supplies—to low-income families with infants or toddlers (age 3 or younger), medically complex children, low-income adults, adults with disabilities, or disabled children ages 3-18; conduct related community outreach; and support community capacity-building, subject to SSBG maintenance-of-effort and nonsupplantation requirements and with states permitted to use up to 5% for administrative costs (including contracting, monitoring, and reporting). From the annual appropriation, the HHS Secretary reserves (1) up to 2% for technical assistance, training, policy support, research, collaboration, and administration via a qualified national nonprofit with expertise in basic needs distribution (e.g., diapers), child care, or parent education and (2) $3 million in FY2026 for program evaluation; reserved amounts are not subject to state entitlement shares. Eligible entities receiving funds may integrate diaper assistance with other programs such as TANF, Medicaid, CHIP, or WIC.

This section includes medically necessary diapers and diapering supplies as qualified medical expenses for health savings accounts (HSAs), Archer medical savings accounts, health flexible spending arrangements, and health reimbursement arrangements, effective for amounts paid or expenses incurred after December 31, 2025. Medically necessary diapers are absorbent garments worn by individuals age 3 or older due to conditions such as bowel or bladder incontinence, short gut syndrome, diabetes insipidus, or severe skin conditions like epidermolysis bullosa, meeting specified quality standards (e.g., absorbency, waterproof cover) if disposable; diapering supplies include items such as wipes and creams to prevent diaper rash. (Thus, taxpayers may use pretax funds from these accounts for such items.)