HB3128, the Improving Diaper Affordability Act of 2025, would make diapers easier to purchase using several tax-advantaged health and dependent-care accounts. The bill amends the Internal Revenue Code to treat diaper expenses as qualified medical expenses for health savings accounts (HSAs), Archer MSAs, health flexible spending arrangements (FSAs), health reimbursement arrangements (HRAs), and certain dependent care accounts. It also specifies that limited-purpose HSA/HRA coverage is not disqualified solely because it reimburses diaper expenses.
In addition to the federal tax changes, the bill would prohibit states and local governments from imposing sales and use taxes on retail diaper purchases. The bill’s findings describe diapers as an essential health and hygiene need for babies and toddlers and cite diaper need as a burden that can affect child health, family finances, work attendance, and maternal mental health. The bill applies its tax-code changes retroactively to expenses and months beginning after December 31, 2024.
Impact
If enacted, the bill would directly amend several provisions of the Internal Revenue Code to expand the list of reimbursable or eligible expenses to include diapers, affecting taxpayers who use HSAs, FSAs, HRAs, Archer MSAs, and dependent care assistance programs. It would also preempt state and local authority by barring sales and use taxes on diaper retail sales, limiting a common form of consumption tax at the state and municipal level. The practical effect would be to reduce out-of-pocket diaper costs for families and to constrain state and local tax policy in this product category.
Sentiment
The bill’s framing and findings indicate strong support for making diapers more affordable, especially for low-income families and caregivers facing diaper need. The introduction by a large group of Democratic sponsors suggests favorable sentiment among its supporters, and the bill’s language emphasizes health, economic security, and child welfare. No committee debate or recorded votes were provided, so there is no evidence in the available record of formal opposition or amendment activity.
Contention
The main likely point of contention is the federal preemption of state and local sales tax authority, since Section 4 would prohibit states and local governments from taxing diaper sales. Another possible issue is the expansion of tax-favored medical and dependent-care categories to include diapers, which may raise questions about the scope of qualified medical expenses and the revenue impact on federal and state tax systems. Supporters appear focused on affordability and public health, while potential critics would likely focus on tax policy, federalism, and the breadth of the tax benefit.
Recognizing the importance of diapers to infant health and family well-being, and expressing support for the designation of the week of September 15 to September 21, 2025, as "National Diaper Need Awareness Week".