income on diaper costs compared to a family of 4 
making median income. 
(7) Diaper need affects not only the health and 
well-being of the child but it can affect the economic 
security of the entire family, forcing families with di-
aper need to cut back on food purchases and per-
sonal savings. 
(8) 25 percent of parents and caregivers with 
diaper need reported having to miss work or school 
because they did not have enough diapers to drop 
their child off at childcare, and reported missing, on 
average, 5.1 workdays in the past 30 days; this rep-
resents a loss of $296 per month for a parent earn-
ing the Federal minimum wage of $7.25 per hour. 
(9) No permanent State or Federal child safety- 
net program allocates dollars specifically for the pur-
chase of diapers. 
SEC. 3. INCLUSION OF DIAPERS AS QUALIFIED MEDICAL 
EXPENSES. 
(a) 
HEALTH
SAVINGS
ACCOUNTS.—Section 
223(d)(2) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end of subparagraph (A) the following: 
‘‘Notwithstanding the first sentence, amounts paid for dia-
pers shall be treated as paid for medical care.’’. 
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(b) ARCHER MSAS.—Section 220(d)(2)(A) of such 
Code is amended by adding at the end the following: ‘‘Not-
withstanding the first sentence, amounts paid for diapers 
shall be treated as paid for medical care.’’. 
(c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec-
tion 106 of such Code is amended by adding at the end 
the following new subsection: 
‘‘(h) REIMBURSEMENTS
FOR DIAPERS.—For pur-
poses of this section and section 105, expenses incurred 
for diapers shall be treated as incurred for medical care.’’. 
(d) DEPENDENT CARE ASSISTANCE AND DEPEND-
ENT CARE FLEXIBLE SPENDING ARRANGEMENTS.—Sec-
tion 129(e)(1) of such Code is amended by adding at the 
end the following: ‘‘Such term shall include expenses in-
curred for diapers.’’. 
(e) LIMITED PURPOSE FLEXIBLE SPENDING AR-
RANGEMENTS AND HEALTH REIMBURSEMENT ARRANGE-
MENTS.—Section 223(c)(1)(B) of such Code is amended 
by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(iv) coverage under a flexible spend-
ing arrangement, or health reimbursement 
arrangement, that pays or reimburses for 
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coverage described in clause (ii) (other 
than long-term care services and, in the 
case of a flexible spending arrangement, 
other than through insurance). Coverage 
shall not fail to be treated as coverage de-
scribed in the preceding sentence solely by 
reason of paying or reimbursing expenses 
incurred for diapers.’’. 
(f) EFFECTIVE DATES.— 
(1) DISTRIBUTIONS FROM HEALTH SAVINGS AC-
COUNTS.—The amendments made by subsections (a) 
and (b) shall apply to amounts paid after December 
31, 2024. 
(2) REIMBURSEMENTS.—The amendment made 
by subsections (c) and (d) shall apply to expenses in-
curred after December 31, 2024. 
(3) LIMITED
PURPOSE
HSA
AND
HRA.—The 
amendments made by subsection (e) shall apply to 
months beginning after December 31, 2024. 
SEC. 4. PROHIBITION OF RETAIL SALES TAXES. 
A State, or unit of local government of a State, may 
not impose a sales and use tax on the retail purchase of 
diapers. 
Æ 
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