End Diaper Need Act of 2021

To provide targeted funding for States and other eligible entities through the Social Services Block Grant program to address the increased burden that maintaining the health and hygiene of infants and toddlers, medically complex children, and low-income adults or adults with disabilities who rely on adult incontinence materials and supplies place on families in need, the resultant adverse health effects on children and families, and the limited child care options available for infants and toddlers who lack sufficient diapers and diapering supplies, and for other purposes. 1. Short title This Act may be cited as the End Diaper Need Act of 2021 2. Targeted funding for diaper assistance (including diapering supplies and adult incontinence materials and supplies) through the Social Services Block Grant Program (a) Increase in funding for Social Services Block Grant Program (1) In general The amount specified in subsection (c) of section 2003 of the Social Security Act ( 42 U.S.C. 1397b (2) Appropriation (A) In general Out of any money in the Treasury of the United States not otherwise appropriated, there is appropriated $200,000,000 for each of fiscal years 2022 through 2025, to carry out this section. (B) Reservations (i) Purposes The Secretary shall reserve, from the amount appropriated under subparagraph (A) to carry out this section— (I) for each of fiscal years 2022 through 2025, not more than 2 percent of the amount appropriated for the fiscal year for purposes of entering into an agreement with a national entity described in subparagraph (C) to assist in providing technical assistance and training, to support effective policy, practice, research, and cross-system collaboration among grantees and subgrantees, and to assist in the administration of the program described in this section; and (II) for fiscal year 2022, an amount, not to exceed $2,000,000, for purposes of conducting an evaluation under subsection (d). (ii) No State entitlement to reserved funds The State entitlement under section 2002(a) of the Social Security Act ( 42 U.S.C. 1397a(a) (C) National entity described A national entity described in this subparagraph is a nonprofit organization described in section 501(c)(3) (i) has experience in more than 1 State in the area of— (I) community distributions of basic need services, including experience collecting, warehousing, and distributing basic necessities such as diapers, food, or menstrual products; (II) child care; (III) child development activities in low-income communities; or (IV) motherhood, fatherhood, or parent education efforts serving low-income parents of young children; (ii) demonstrates competency to implement a project, provide fiscal accountability, collect data, and prepare reports and other necessary documentation; and (iii) demonstrates a willingness to share information with researchers, practitioners, and other interested parties. (b) Rules governing use of additional funds (1) In general Funds are used in accordance with this subsection if— (A) the State, in consultation with relevant stakeholders, including agencies, professional associations, and nonprofit organizations, distributes the funds to eligible entities to— (i) decrease the need for diapers and diapering supplies and adult incontinence materials and supplies in low-income families and meet such unmet needs of infants and toddlers, medically complex children, and low-income adults and adults with disabilities in such families through— (I) the distribution of free diapers and diapering supplies, medically necessary diapers, and adult incontinence materials and supplies; (II) community outreach to assist in participation in existing diaper distribution programs or programs that distribute medically necessary diapers or adult incontinence materials and supplies; or (III) improving access to diapers and diapering supplies, medically necessary diapers, and adult incontinence materials and supplies; and (ii) increase the ability of communities and low-income families in such communities to provide for the need for diapers and diapering supplies, medically necessary diapers, and adult continence materials and supplies, of infants and toddlers, medically complex children, and low-income adults and adults with disabilities; (B) the funds are used subject to the limitations in section 2005 of the Social Security Act ( 42 U.S.C. 1397d (C) the funds are used to supplement, not supplant, State general revenue funds provided for the purposes described in subparagraph (A); and (D) the funds are not used for costs that are reimbursable by the Federal Emergency Management Agency, under a contract for insurance, or by self-insurance. (2) Allowable uses by eligible entities An eligible entity receiving funds made available under subsection (a) shall use the funds for any of the following: (A) To pay for the purchase and distribution of diapers and diapering supplies, medically necessary diapers, and funding diaper (including medically necessary diapers) distribution that serves low-income families with— (i) 1 or more children 3 years of age or younger; or (ii) 1 or more medically complex children. (B) To pay for the purchase and distribution of adult incontinence materials and supplies and funding distribution of such materials and supplies that serves low-income families with 1 or more low-income adults or adults with disabilities who rely on adult incontinence materials and supplies. (C) To integrate activities carried out under subparagraph (A) with other basic needs assistance programs serving eligible children and their families, including the following: (i) Programs funded by the temporary assistance for needy families program under part A of title IV of the Social Security Act ( 42 U.S.C. 601 (ii) Programs designed to support the health of eligible children, such as the Children’s Health Insurance Program under title XXI of the Social Security Act, the Medicaid program under title XIX of such Act, or State funded health care programs. (iii) Programs funded through the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966. (iv) Programs that offer early home visiting services, including the maternal, infant, and early childhood home visiting program (including the Tribal home visiting program) under section 511 of the Social Security Act ( 42 U.S.C. 711 (v) Programs to provide improved and affordable access to child care, including programs funded through the Child Care and Development Fund, the temporary assistance for needy families program under part A of title IV of the Social Security Act ( 42 U.S.C. 601 (3) Availability of funds (A) Funds distributed to eligible entities Funds made available under subsection (a) that are distributed to an eligible entity by a State for a fiscal year may be expended by the eligible entity only in such fiscal year or the succeeding fiscal year. (B) Evaluation Funds reserved under subsection (a)(2)(B)(i)(II) to carry out the evaluation under subsection (d) shall be available for expenditure during the 3-year period that begins on the date of enactment of this Act. (4) No effect on other programs Any assistance or benefits received by a family through funds made available under subsection (a) shall be disregarded for purposes of determining the family’s eligibility for, or amount of, benefits under any other Federal needs-based programs. (c) Annual reports A State shall include in the annual report required under section 2006 of the Social Security Act ( 42 U.S.C. 1397e (1) The number and age of infants, toddlers, medically complex children, and low-income adults and adults with disabilities who received assistance or benefits through such funds. (2) The number of families that have received assistance or benefits through such funds. (3) The number of diapers, medically necessary diapers, or adult incontinence materials and supplies (such as adult diapers, briefs, protective underwear, pull-ons, pull-ups, liners, shields, guards, pads, undergarments), and the number of each type of diapering or adult incontinence supply, distributed through the use of such funds. (4) The ZIP Code or ZIP Codes where the eligible entity (or subgrantee) distributed diapers and diapering supplies and adult incontinence materials and supplies. (5) The method or methods the eligible entity (or subgrantee) uses to distribute diapers and diapering supplies and, adult incontinence materials and supplies. (6) Such other information as the Secretary may specify. (d) Evaluation The Secretary, in consultation with States, the national entity described in subsection (a)(2)(C), and eligible entities receiving funds made available under this section, shall— (1) not later than 2 years after the date of enactment of this Act— (A) complete an evaluation of the effectiveness of the assistance program carried out pursuant to this section, such as the effect of activities carried out under this Act on mitigating the health and developmental risks of unmet diaper need among infants, toddlers, medically complex children, and other family members in low-income families, including the risks of diaper dermatitis, urinary tract infections, and parental and child depression and anxiety; (B) submit to the relevant congressional committees a report on the results of such evaluation; and (C) publish the results of the evaluation on the internet website of the Department of Health and Human Services; (2) not later than 3 years after the date of enactment of this Act, update the evaluation required by paragraph (1)(A); and (3) not later than 90 days after completion of the updated evaluation under paragraph (2)— (A) submit to the relevant congressional committees a report describing the results of such updated evaluation; and (B) publish the results of such evaluation on the internet website of the Department of Health and Human Services. (e) Guidance Not later than 180 days after enactment of this Act, the Secretary shall issue guidance regarding how the provisions of this section should be carried out, including information regarding eligible entities, allowable use of funds, and reporting requirements. (f) Definitions In this section: (1) Adult incontinence materials and supplies The term adult incontinence materials and supplies (2) Adults with disabilities The term adults with disabilities (A) have attained age 18; and (B) have a disability (as such term is defined, with respect to an individual, in section 3 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102 (3) Diaper The term diaper (A) is washable or disposable that may be worn by an infant or toddler who is not toilet-trained; and (B) if disposable— (i) does not use any latex or common allergens; and (ii) meets or exceeds the quality standards for diapers commercially available through retail sale in the following categories: (I) Absorbency (with acceptable rates for first and second wetting). (II) Waterproof outer cover. (III) Flexible leg openings. (IV) Refastening closures. (4) Diapering supplies The term diapering supplies (A) an eligible child using a diaper is properly cleaned and protected from diaper rash; or (B) a medically complex child who uses a medically necessary diaper is properly cleaned and protected from diaper rash. (5) Eligible child The term eligible child (A) has not attained 4 years of age; and (B) is a member of a low-income family. (6) Eligible entities The term eligible entity section 501(c)(3) (A) has experience in the area of— (i) community distributions of basic need services, including experience collecting, warehousing, and distributing basic necessities such as diapers, food, or menstrual products; (ii) child care; (iii) child development activities in low-income communities; or (iv) motherhood, fatherhood, or parent education efforts serving low-income parents of young children; (B) demonstrates competency to implement a project, provide fiscal accountability, collect data, and prepare reports and other necessary documentation; and (C) demonstrates a willingness to share information with researchers, practitioners, and other interested parties. (7) Federal poverty line The term Federal poverty line (8) Low-income The term low-income (9) Medically complex child The term medically complex child (10) Medically necessary diaper The term medically necessary diaper (A) washable or disposable; (B) worn by a medically complex child who has been diagnosed with bowel or bladder incontinence, a bowel or bladder condition that causes excess urine or stool (such as short gut syndrome or diabetes insipidus), or a severe skin condition that causes skin erosions (such as epidermolysis bullosa) and needs such garment to correct or ameliorate such condition; and (C) if disposable— (i) does not use any latex or common allergens; and (ii) meets or exceeds the quality standards for diapers commercially available through retail sale in the following categories: (I) Absorbency (with acceptable rates for first and second wetting). (II) Waterproof outer cover. (III) Flexible leg openings. (IV) Refastening closures. (g) Exemption of program from sequestration (1) In general Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 905(h) Supplemental Security Income Program (28–0406–0–1–609). Targeted funding for States for diaper assistance (including diapering supplies and adult incontinence materials and supplies) through the Social Services Block Grant Program. . (2) Applicability The amendment made by this subsection shall apply to any sequestration order issued under the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900 3. Improving access to diapers for medically complex children Section 1915(c) of the Social Security Act ( 42 U.S.C. 1396n(c) (11) (A) In the case of any waiver under this subsection that provides medical assistance to a medically complex child who has been diagnosed with bowel or bladder incontinence, a bowel or bladder condition that causes excess urine or stool (such as short gut syndrome or diabetes insipidus), or a severe skin condition that causes skin erosions (such as epidermolysis bullosa), such medical assistance shall include, for the duration of the waiver, the provision of 200 medically necessary diapers per month and diapering supplies. Such medical assistance may include the provision of medically necessary diapers in amounts greater than 200 if a licensed health care provider (such as a physician, nurse practitioner, or physician assistant) specifies that such greater amounts are necessary for such medically complex child. (B) For purposes of this paragraph: (i) The term medically complex child (ii) The term medically necessary diaper (I) washable or disposable; (II) worn by a medically complex child who has been diagnosed with a condition described in subparagraph (A) and needs such garment to correct or ameliorate such condition; and (III) if disposable— (aa) does not use any latex or common allergens; and (bb) meets or exceeds the quality standards for diapers commercially available through retail sale in the following categories: (AA) Absorbency (with acceptable rates for first and second wetting). (BB) Waterproof outer cover. (CC) Flexible leg openings. (DD) Refastening closures. (iii) The term diapering supplies . 4. Inclusion of diapers and diapering supplies as qualified medical expenses (a) Health savings accounts Section 223(d)(2) (1) by inserting , medically necessary diapers, and diapering supplies menstrual care products (2) by adding at the end the following new subparagraph: (E) Medically necessary diapers and diapering supplies For purposes of this paragraph— (i) Medically necessary diapers The term medically necessary diaper (I) does not use any latex or common allergens; and (II) meets or exceeds the quality standards for diapers commercially available through retail sale in the following categories: (aa) Absorbency (with acceptable rates for first and second wetting). (bb) Waterproof outer cover. (cc) Flexible leg openings. (dd) Refastening closures. (ii) Diapering supplies The term diapering supplies . (b) Archer MSAs The last sentence of section 220(d)(2)(A) of such Code is amended by inserting , medically necessary diapers (as defined in section 223(d)(2)(E)), and diapering supplies (as defined in section 223(d)(2)(E)) menstrual care products (as defined in section 223(d)(2)(D)) (c) Health flexible spending arrangements and health reimbursement arrangements Section 106(f) of such Code is amended— (1) by inserting , medically necessary diapers (as defined in section 223(d)(2)(E)), and diapering supplies (as defined in section 223(d)(2)(E)) menstrual care products (as defined in section 223(d)(2)(D)) (2) in the heading, by inserting , medically necessary diapers, and diapering supplies menstrual care products (d) Effective dates (1) Distributions from certain accounts The amendments made by subsections (a) and (b) shall apply to amounts paid after December 31, 2022. (2) Reimbursements The amendment made by subsection (c) shall apply to expenses incurred after December 31, 2022.

Summary: End Diaper Need Act of 2021 This bill establishes and expands programs to provide low-income families and other vulnerable groups with access to diapers and related supplies. Specifically, it provides additional funding for FY2022-FY2025 to meet the diapering needs of certain low-income families and adults through the Social Services Block Grant Program. This grant program provides a flexible funding stream to states and territories to support social services for vulnerable children, adults, and families. The bill exempts these funds from sequestration. Sequestration is a process of automatic, across-the-board reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals. In particular, these funds must be used to meet the diapering needs of low-income families with one or more infants, toddlers, or medically complex children (i.e., children who are age three or older and diagnosed with a serious condition such as bowel or bladder incontinence); and low-income adults and adults with disabilities who rely on diapers and other adult incontinence materials. Additionally, the bill permits states to use Medicaid funds to provide medically necessary diapers and supplies to low-income families with one or more medically complex children. It also allows individuals to buy medically necessary diapers and supplies with funds from health savings accounts and other tax-advantaged accounts for health care expenses.