Federal bill would fund free diapers for low-income families and ease HSA rules

What does this do?

HR 3508 directs $200 million per year in federal funds from 2026 through 2029 through the Social Services Block Grant to provide free diapers and related supplies to qualifying families and low-income or disabled adults. States would receive the money and distribute it to local organizations, nonprofits, and diaper banks. The bill also changes tax rules so that Health Savings Accounts, Medical Savings Accounts, Health Flexible Spending Accounts, and Health Reimbursement Arrangements can be used to purchase medically necessary diapers and diapering supplies.

Who does it affect?

Low-income families earning no more than twice the federal poverty level, adults with disabilities who need incontinence products, and people of any age with a diagnosed medical condition requiring diapers are the primary people affected. People with employer-sponsored tax-advantaged health accounts who face medical diapering needs would also be affected by the tax change.

Why does it matter?

States would be required to report yearly data on how funds were spent and who received assistance, creating an accountability mechanism. An independent study would measure the program's health outcomes, which could inform future policy decisions.

What does it cost, and who pays?

• $200M per year, 2026–2029
• Routed through Social Services Block Grant
• States pass funds to local orgs