From: The Honorable Patrick T. McHenry
Bill: H.R. 782
Please join Rep. McHenry in co-sponsoring H.R. 782, the Family Care Savings Act. This legislation raises the cap on dependent care flexible spending accounts from $5,000 to $10,000 and indexes the cap amount to inflation.
We have all seen the drastic rise in prices for American families for the last thirty years, and the cost of childcare is no different. This much-needed change is a common sense reform to better address the budget realities faced by so many American families.
Flexible spending accounts (FSA) are a savings vehicle established as part of employer-sponsored health insurance plans. They allow employees to save a share of their earnings for qualifying expenses which typically include medical or dependent care. The
money is pre-taxed and deducted directly from employees paychecks.
The dependent care FSA was originally created as part of the Tax Reform Act of 1986 and is designed to help American families plan and budget by using pretax dollars to pay for expenses related to the care of children, disabled spouses, or elderly parents.
The current cap of $5,000 was originally set in 1986 and applies to children under the age of 13, anyone who is physically or mentally unable to care for themselves, and any adult whose care is predominantly paid for by another person. Minimum and maximum
contribution amounts to dependent care FSAs are set by employers.
If you would like to co-sponsor or have questions about the Family Care Savings Act, please contact Chris Worrell (28074) at