# 119-hr-3186: Universal Savings Account Act of 2025

119-hr-3186, Universal Savings Account Act of 2025, is a 119th Congress bill sponsored by Rep. Harshbarger, Diana [R-TN-1] (R-TN); status introduced; PRIA reads it as touching household money (as of 2026-09-02).

- Canonical: https://policyrisk.com/legislation/119-hr-3186
- As of: 2026-09-02
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3186
- Congress: 119
- Title: Universal Savings Account Act of 2025
- Status: introduced
- Introduced: 2025-05-05
- Sponsor: Rep. Harshbarger, Diana [R-TN-1] (R-TN)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-02

## Summary

**Universal Savings Accounts (USAs)** would create a new tax-preferred trust account in the Internal Revenue Code so individuals can save in a specially designed, tax-advantaged vehicle with set rules on contributions, trustees, rollovers, death, reporting, and penalties. It would apply to taxable years beginning after December 31, 2024. - Families and individual savers: Holders generally get tax-free distributions, but net income tied to excess contributions is taxable in the year the contribution was made. If a surviving spouse acquires the account it remains a USA, otherwise the balance is treated as distributed at death. - Contribution limits and rollovers: Annual caps start at $10,000 plus $500 for each calendar year after 2024 and are indexed for inflation. Qualified rollovers from one USA to another are allowed if completed within 60 days. - Trustees, reporting, and enforcement: Trustees must be banks or approved administrators and must report contributions and distributions to the IRS and beneficiaries. The bill adds USAs to existing excess-contribution and prohibited-transaction rules so excess contributions and certain transactions trigger established tax penalties and compliance provisions.

## Cosponsors (1)

- Rep. Cloud, Michael [R-TX-27] (R-TX), 2026-05-26T00:00:00.000Z

## Provisions PRIA read

- Higher yearly limit for Universal Savings contributions: benefit, high. This bill would set one yearly limit across all your Universal Savings Accounts. It would start at $10,000 and rise by $500 each year after 2024. Starting in 2026, the amount would also adjust for inflation, with increases rounded down to the nearest $100. The yearly limit could not be more than $2…
- New tax-free Universal Savings Account: benefit, medium. This bill would let you open a Universal Savings Account for one person. Most withdrawals would not be taxed. If you put in more than allowed, the net income tied to that extra would be taxed in the year you overcontributed. You could roll money to another Universal Savings Account for the same per…
- Rules and protections for Universal Savings Accounts: benefit, low. This bill would set guardrails for Universal Savings Accounts. Contributions (except qualified rollovers) must be in cash and within the yearly limit. Trustees must be banks or other approved providers, keep your interest nonforfeitable, avoid commingling, and cannot buy life insurance with account…
- Tax on Universal Savings overcontributions: cost, low. This bill would impose an excise tax if you contribute more than your yearly Universal Savings limit. The excess for a year would include new overages plus any prior excess not cleared by withdrawals or unused room. If you take out the extra amount and its earnings by your tax return due date, it w…

## Related bills

- 119-hr-4317: PBM Reform Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1181: Protecting Privacy in Purchases Act
- 119-hr-987: Fair Access to Banking Act
- 119-hr-7651: Chloe Cole Act of 2026
- 119-hr-4448: Restoring Equal Opportunity Act

## Sources
- [119-hr-3186 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3186)

## Related
- [119-hr-4317: PBM Reform Act of 2025](https://policyrisk.com/legislation/119-hr-4317)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1181: Protecting Privacy in Purchases Act](https://policyrisk.com/legislation/119-hr-1181)
- [119-hr-987: Fair Access to Banking Act](https://policyrisk.com/legislation/119-hr-987)
- [119-hr-7651: Chloe Cole Act of 2026](https://policyrisk.com/legislation/119-hr-7651)
- [119-hr-4448: Restoring Equal Opportunity Act](https://policyrisk.com/legislation/119-hr-4448)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3186 (as of 2026-09-02).