CHILD Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 413 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 413

  To amend the Internal Revenue Code of 1986 to index dependent care 
                   assistance programs to inflation.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2025

 Mrs. Bice (for herself, Ms. Sanchez, Mr. Feenstra, Ms. Houlahan, Mr. 
Moolenaar, Mr. Nunn of Iowa, Mr. Torres of New York, and Mr. Magaziner) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to index dependent care 
                   assistance programs to inflation.

    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 ``Combating High Inflation Limiting 
Daycare Act of 2025'' or the ``CHILD Act of 2025''.

SEC. 2. INCREASED MAXIMUM CONTRIBUTION TO DEPENDENT CARE ASSISTANCE 
              PROGRAMS.

    (a) In General.--Section 129(a)(2)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``$5,000 ($2,500'' and inserting 
``$10,000 ($5,000''.
    (b) Cost-of-Living Adjustment.--Section 129 of such Code is amended 
by adding at the end the following new subsection:
    ``(f) Inflation Adjustment.--
            ``(1) In general.--Each dollar amount in this section shall 
        be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                such taxable year begins, determined by substituting 
                `calendar year 2023' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any increase under paragraph (1) is not 
        a multiple of $50, such increase shall be rounded to the 
        nearest multiple of $50.''.
    (c) Removing Deadwood.--Section 129(a)(2) of such Code is amended 
by striking subparagraph (D).
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2024.
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