“To direct the Secretary of Transportation to carry out a grant program to improve highway safety.”
No CRS summary available for this bill.
This section revises Health Savings Account (HSA) contribution eligibility under IRC §223(c)(1)(C) by striking the limitation that disqualifying coverage includes only VA medical benefits for a service-connected disability. (1) It defines an eligible individual, for purposes of §223, as any individual who served in active military, naval, air, or space service and was discharged or released under conditions other than dishonorable; (2) it clarifies that the changes do not reduce or limit VA benefits eligibility under title 38, U.S. Code, and permit HSA funds for cost-sharing or supplementary items not fully covered by VA benefits. The amendments apply to taxable years beginning after December 31, 2025.
This section revises the tax treatment of distributions from health savings accounts (HSAs)—tax-favored savings accounts for individuals enrolled in high-deductible health plans—to exclude from gross income amounts paid or distributed during a period of qualified caregiving, with conforming changes to basis rules and penalty headings. A period of qualified caregiving is defined as any period during which an individual is on leave or not employed due to circumstances specified in section 102(a)(1)(A) through (E) of the Family and Medical Leave Act of 1993 (i.e., the employee's own serious health condition; birth, adoption, or foster care placement; care for a family member with a serious health condition; military exigencies; or care for a covered servicemember). (Thus, such distributions avoid both income inclusion and the additional 20% tax generally applicable to nonqualified HSA withdrawals.) The amendments apply to taxable years beginning after the date of enactment.
This section eliminates the requirement for coverage under a high-deductible health plan (HDHP) to make contributions to a health savings account (HSA)—previously, contributions were allowed only for months an individual qualified as an "eligible individual" (i.e., covered by an HDHP with no disqualifying coverage). It further replaces the prior monthly contribution limitation (prorated based on HDHP coverage periods) with a flat annual limit of $9,000 ($18,000 in the case of a joint return), retains inflation adjustments for that amount (indexed from calendar year 1997), and makes conforming amendments to remove related definitions and limitations. The changes apply to months in taxable years beginning after the date of enactment.
This section directs the Secretary of the Treasury, in consultation with the Secretary of Veterans Affairs, to issue regulations and guidance as necessary to implement the Act's amendments, including rules to prevent abuse and duplication of benefits, ensure documentation of prescriptions or medical recommendations, and report to Congress on Health Savings Account (HSA) use by eligible veterans. It further requires the Secretary to include in the annual report to Congress for each taxable year a summary of (1) the number of eligible veterans making HSA contributions under section 1, (2) the aggregate amount of such contributions and distributions, (3) types of devices or treatments for distributions under section 2, and (4) issues encountered (e.g., fraud, duplication, program overlap) and recommendations for improvement.