S3333Reported by Committee

Emergency Savings Enhancement Act of 2025

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2025-12-03
Introduced
3
Cosponsors
S
ⓘ
Type

Sponsor

Todd Young
Todd Young
Republican · IN · Senator
Votes with party: 75.6% (888 recorded votes)

Full profile: /officials/Y000064

Source: Congress.gov · FEC

Cosponsors (3)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.

2026-08-05

Source: Congress.gov

Committee Activity

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Plain-English Summary

The proposal would allow workers to set aside money in special savings accounts for emergency expenses while receiving tax breaks on those contributions. This would help individuals and families build financial cushions for unexpected costs like medical bills or car repairs without paying taxes on the money they save. The benefit would primarily affect working people looking to protect themselves from financial hardship.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Subjects

Taxation

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 3333 Introduced in Senate (IS)] <DOC> 119th CONGRESS 1st Session S. 3333 To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES December 3, 2025 Mr. Young (for himself and Mr. Booker) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions _______________________________________________________________________ A BILL To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Emergency Savings Enhancement Act of 2025''. SEC. 2. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended-- (1) by striking subsection (b) and inserting the following: ``(b) Eligible Participant.--For purposes of this part, the term `eligible participant', with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.''; and (2) in subsection (d)-- (A) in paragraph (1)(A)(i), by striking ``$2,500'' and inserting ``$5,000''; and (B) in paragraph (3)(A)-- (i) in clause (vii), by adding ``and'' at the end; (ii) in clause (viii), by striking ``; and'' and inserting a period; and (iii) by striking clause (ix). SEC. 3. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986. (a) Eligible Participant.--Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows: ``(2) Eligible participant.--For purposes of this subsection, the term `eligible participant', with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.''. (b) Contribution Limitation.--Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking ``$2,500'' and inserting ``$5,000''. (c) Conforming Amendment.--Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding ``and'' at the end of clause (vii), by striking ``; and'' at the end of clause (viii) and inserting a period, and by striking clause (ix). SEC. 4. EFFECTIVE DATE. The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026. <all>
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