Legislative Tracker - Grid

Paid Family and Medical Leave Tax Credit Extension and Enhancement Act

This bill makes the paid family and medical leave tax credit permanent, expands eligibility for the credit, requires outreach to increase awareness of the tax credit, and makes other changes to the credit.

Currently, an eligible employer may claim a tax credit (through 2025) for up to 25% of wages paid to a qualifying employee (who has worked for the employer for one year or more) while the employee is on family and medical leave.

The bill makes the tax credit for paid family and medical leave permanent and allows an eligible employer to claim the tax credit for 25% of either (1) wages paid to a qualifying employee while the employee is on family and medical leave, or (2) premiums paid for paid family or medical leave insurance.

The bill also

• allows an employer to provide family and medical leave to an employee who has worked for the employer for six months or more,
• provides that leave that is paid by a state or local government or required by state or local law must be taken into account in determining the amount of leave provided by the employer but may not be counted when determining the amount of the credit, and
• provides a limited exception to the requirements related to written family and medical leave policies.

Finally, the bill requires targeted outreach to employers and other relevant parties regarding the availability and requirements of the tax credit.

Retirement Fairness for Charities and Educational Institutions Act of 2025

This bill allows 403(b) retirement plans (i.e., retirement plans designed for certain employees of public schools, charities, and churches) to invest in collective investment trusts, which are a group of pooled investment assets held by a bank or trust company, and in insurance company separate accounts.

Freedom for Families Act

This bill allows individuals to establish and contribute to a health savings account (HSA) without being enrolled in a high-deductible health plan (HDHP), increases HSA contribution limits, and allows tax-free distributions from an HSA during a period of qualified caregiving.

Under current law, individuals may establish and contribute to an HSA if they are covered under an HSA-eligible HDHP. For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals who are at least 55 years old may make an additional HSA contribution of up to $1,000 per year. Further, under current law, HSA distributions are tax-free if used to pay for qualified medical expenses. 

The bill eliminates the HDHP coverage requirement for purposes of an HSA.

The bill also increases the HSA annual contribution limit to $9,000 for individuals or $18,000 for joint filers (adjusted annually) and eliminates the additional contribution for individuals who are at least 55 years old.

Finally, the bill excludes HSA distributions during a period of qualified caregiving from gross income. The bill defines period of qualified caregiving as any period during which an individual is on leave or not employed due to

• the birth or adoption of a child;
• placement of a foster child;
• caring for a family member with a serious health condition;
• an inability to work due to a serious health condition; or
• certain emergencies related to a spouse, child, or parent on covered active duty with the Armed Forces. 

Protecting Free Vaccines Act of 2025 

This bill requires Medicare, Medicaid, the Children's Health Insurance Program (CHIP), and private health insurers to cover, without cost-sharing, vaccines that were recommended by the Centers for Disease Control and Prevention's Advisory Committee on Immunization Practices as of October 25, 2024. The requirement ends on January 1, 2030.