I 
119TH CONGRESS 
2D SESSION 
H. R. 6979 
To amend the Internal Revenue Code of 1986 to provide for youth sports, 
to establish a grant program for recreational youth sports, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 8, 2026 
Mr. GOTTHEIMER (for himself and Mr. LAWLER) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on Education and Workforce, and Energy and 
Commerce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for youth sports, to establish a grant program for rec-
reational youth sports, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Promoting Lifelong 
Activity for Youth Act of 2026’’ or the ‘‘PLAY Act of 
2026’’. 
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SEC. 2. MODIFICATION OF CHILD AND DEPENDENT CARE 
TAX CREDIT. 
(a) ALLOWANCE OF EXPENSES FOR YOUTH PHYS-
ICAL ACTIVITIES.—Section 21(b)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of clause (i), by striking the period at the end 
of clause (ii) and inserting ‘‘, and’’, and by inserting after 
clause (ii) the following: 
‘‘(iii) expenses for youth physical ac-
tivities (within the meaning of section 
213(d)(12)).’’. 
(b) 
EXCEPTION
TO
CAMP
RULE.—Section 
21(b)(2)(A) of such Code (as amended by subsection (a)) 
is amended by striking ‘‘Such term’’ and inserting ‘‘Ex-
cept in the case of expenses described in clause (iii), such 
term’’. 
(c) DOLLAR LIMITATIONS.—Section 21(c) of such 
Code is amended to read as follows: 
‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.— 
‘‘(1) IN GENERAL.—The amount of the employ-
ment-related expenses incurred during any taxable 
year which may be taken into account under sub-
section (a) shall not exceed— 
‘‘(A) if there is 1 qualifying individual with 
respect to the taxpayer for such taxable year, 
$4,000, or 
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‘‘(B) if there are 2 or more qualifying indi-
viduals with respect to the taxpayer for such 
taxable year, $7,000. 
‘‘(2) REDUCTION.—The amount determined 
under paragraph (1) shall be reduced by the aggre-
gate amount excludable from gross income under 
section 129 for the taxable year.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 3. INCREASE IN DOLLAR AMOUNT OF ELECTION FOR 
DEPENDENT CARE FLEXIBLE SPENDING AR-
RANGEMENTS. 
(a) IN GENERAL.—Section 125 of the Internal Rev-
enue Code of 1986 is amended by redesignating sub-
sections (k) and (l) as subsections (l) and (m) and insert-
ing after subsection (j) the following: 
‘‘(k) LIMITATION ON DEPENDENT CARE FLEXIBLE 
SPENDING ARRANGEMENTS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, if a benefit is provided under a cafeteria plan 
through employer contributions to a dependent care 
flexible spending arrangement, such benefit shall not 
be treated as a qualified benefit unless the cafeteria 
plan provides that an employee may not elect for 
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any taxable year to have salary reduction contribu-
tions in excess of $10,000 made to such arrange-
ment for each dependent under such arrangement. 
‘‘(2) SINGLE PARENT.—In the case that the 
employee is an individual who is not married as of 
the beginning of the taxable year for which the em-
ployee elects to participate in the arrangement, 
paragraph (1) shall be applied by substituting 
‘$12,000’ for ‘$10,000’.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 4. YOUTH PHYSICAL ACTIVITIES. 
(a) IN GENERAL.—Paragraph (1) of section 213(d) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or’’ at the end of subparagraph (C), by striking the 
period at the end of subparagraph (D) and inserting ‘‘, 
or’’, and by inserting after subparagraph (D) the following 
new subparagraph: 
‘‘(E) for youth physical activities.’’. 
(b) YOUTH PHYSICAL ACTIVITIES.—Subsection (d) 
of section 213 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(12) YOUTH PHYSICAL ACTIVITIES.— 
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‘‘(A) IN GENERAL.—The term ‘youth phys-
ical activities’ means registration costs, fees, 
and expenses associated with the participation 
by dependents of the taxpayer (as defined in 
section 152) who have attained age 4 but not 
age 18 in the following: 
‘‘(i) Membership at a fitness facility. 
‘‘(ii) Participation or instruction in 
physical exercise or physical activity. 
‘‘(iii) Equipment used in a program 
(including a self-directed program) of 
physical exercise or physical activity. 
‘‘(B) OVERALL DOLLAR LIMITATION.—The 
aggregate amount treated as youth physical ac-
tivities with respect to any taxpayer for any 
taxable year shall not exceed $1,000 ($2,000 in 
the case of a joint return or a head of house-
hold (as defined in section 2(b))). 
‘‘(C) FITNESS FACILITY.—For purposes of 
subparagraph (A)(i), the term ‘fitness facility’ 
means a facility— 
‘‘(i) which provides instruction in a 
program of physical exercise, offers facili-
ties for the preservation, maintenance, en-
couragement, or development of physical 
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fitness, or serves as the site of such a pro-
gram of a State or local government, 
‘‘(ii) which is not a private club owned 
and operated by its members, 
‘‘(iii) which does not offer golf, hunt-
ing, sailing, or riding facilities, 
‘‘(iv) the health or fitness component 
of which is not incidental to its overall 
function and purpose, and 
‘‘(v) which is fully compliant with the 
State of jurisdiction and Federal anti-dis-
crimination laws. 
‘‘(D) TREATMENT OF EXERCISE VIDEOS, 
ETC.—Videos, books, and similar materials 
shall be treated as described in subparagraph 
(A)(ii) if the content of such materials con-
stitutes instruction in a program of physical ex-
ercise or physical activity. 
‘‘(E) LIMITATIONS.— 
‘‘(i) USE OF FUNDS.—Amounts paid 
for costs, fees, or expenses described in 
subparagraph (A)(ii) shall be treated as 
paid for youth physical activities only if 
such amounts are not paid for— 
‘‘(I) tournament entries, or 
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‘‘(II) private lessons, training, or 
camps. 
‘‘(ii) SPORTS
AND
FITNESS
EQUIP-
MENT.—Amounts paid for equipment de-
scribed in subparagraph (A)(iii) shall be 
treated as paid for youth physical activities 
only— 
‘‘(I) if such equipment is used 
exclusively for participation in fitness, 
exercise, sport, or other physical activ-
ity, 
‘‘(II) in the case of amounts paid 
for apparel or footwear, if such ap-
parel or footwear is of a type that is 
necessary for, and is not used for any 
purpose other than, a specific physical 
activity, and 
‘‘(III) in the case of amounts 
paid for any single item of sports 
equipment (other than exercise equip-
ment), to the extent such amounts do 
not exceed $250. 
‘‘(F) PROGRAMS WHICH INCLUDE COMPO-
NENTS OTHER THAN PHYSICAL EXERCISE AND 
PHYSICAL ACTIVITY.—Rules similar to the rules 
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of paragraph (6) shall apply in the case of any 
program that includes physical exercise or phys-
ical activity and also other components. For 
purposes of the preceding sentence, travel and 
accommodations shall be treated as a separate 
component.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 5. RECREATIONAL YOUTH SPORTS HHS GRANT PRO-
GRAM. 
(a) ESTABLISHMENT.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of Health 
and Human Services (in this section referred to as the 
‘‘Secretary’’) shall establish a program to award grants, 
on a competitive basis, to eligible entities for the purposes 
of expanding access to, and increasing the participation 
capacity of, recreational youth sports— 
(1) to decrease the costs of such participation 
for families; and 
(2) to promote healthy habits, physical activity, 
and socialization. 
(b) APPLICATIONS.—To be eligible for a grant under 
this section, an entity shall submit to the Secretary an 
application at such time, in such manner, and containing 
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such information as the Secretary determines is appro-
priate, which shall include an attestation that the entity 
will use the grant only for the purposes described in sub-
section (a). 
(c) USE OF FUNDS.— 
(1) IN GENERAL.—A grant awarded under this 
section may not be used— 
(A) to construct or upgrade a facility; or 
(B) to fund a component of a sports pro-
gram that is competitive, elite, or selective (in-
cluding such a component that involves travel). 
(2) RULE
OF
CONSTRUCTION.—For the pur-
poses of paragraph (1), a component of a sports pro-
gram shall not be construed as competitive, elite, or 
selective solely because such component includes 
games or matches in which a score is kept. 
(3) SUPPLEMENT, NOT SUPPLANT.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), a grant awarded under this section 
shall be used to supplement, not supplant, 
funds from other sources. 
(B) EXCEPTION.—A grant awarded under 
this section may be used to supplant funds from 
other sources to remove fees for families for the 
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purpose of expanding access to recreational 
youth sports. 
(d) GRANT PERIOD.—A grant awarded under this 
section shall be for a period of 2 years. 
(e) AMOUNT.—A grant awarded under this section 
shall be for an amount— 
(1) not less than $5,000; and 
(2) not more than $50,000. 
(f) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report containing an assessment of how grants 
awarded under this section fulfilled the purposes described 
in subsection (a). 
(g) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’— 
(A) means— 
(i) a local government; 
(ii) a nonprofit organization; 
(iii) a Tribal organization; and 
(iv) a veterans organization; and 
(B) does not include any entity or organi-
zation of— 
(i) an elementary school, a secondary 
school, or a local educational agency (as 
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such terms are defined in section 8101 of 
the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801)); or 
(ii) an institution of higher education 
(as defined in section 101 of the Higher 
Education Act of 1965 (20 U.S.C. 1001)). 
(2) NONPROFIT
ORGANIZATION.—The term 
‘‘nonprofit organization’’ means an organization that 
is described in section 501(c)(3) of the Internal Rev-
enue Code of 1986 and that is exempt from taxation 
under section 501(a) of such Code. 
(3) TRIBAL ORGANIZATION.—The term ‘‘Tribal 
organization’’ has the meaning given the term in 
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 5304). 
(4) VETERANS ORGANIZATION.—The term ‘‘vet-
erans organization’’ means an organization that is 
described in section 501(c)(19) of the Internal Rev-
enue Code of 1986 and that is exempt from taxation 
under section 501(a) of such Code. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$200,000,000 for the period of fiscal years 2026 through 
2030. 
Æ 
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