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119-hr-6417119th CongressWALLET

Emergency Savings Enhancement Act of 2025

Sponsored By: Representative Vindman, Eugene Simon [D-VA-7]

Introduced

Summary

Raises the cap for pension-linked emergency savings to $5,000 and makes eligibility based on each plan's rules. This bill would change ERISA and the tax code so defined contribution plans can offer larger emergency savings accounts that follow plan-specific age, service, and other eligibility requirements.

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  • Workers and households: Workers could save up to $5,000 in a pension-linked emergency account instead of $2,500 if their plan permits it, giving people more room to build short-term cash inside their retirement plan.
  • Plan sponsors: Employers and plan managers would set who qualifies by using their plan's age, service, and other rules rather than a separate statutory eligibility test.
  • Tax rules and timing: The Internal Revenue Code limit would also rise to $5,000 so tax and ERISA definitions match, and the changes apply for taxable years beginning after December 31, 2026, covering plan years that start in 2027.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Higher emergency savings cap for workers

If enacted, the bill would raise the emergency savings cap inside some workplace retirement plans from $2,500 to $5,000. If enacted, whether you are eligible would be set by your plan's age, service, and other rules. This would affect workers in defined contribution plans and the employers who run those plans. The changes would apply for taxable and plan years beginning after December 31, 2026 (in practice, 2027 and later).

Sponsors & CoSponsors

Sponsor

Vindman, Eugene Simon [D-VA-7]

VA • D

Cosponsors

  • Rep. Thompson, Glenn [R-PA-15]

    PA • R

    Sponsored 12/3/2025

Roll Call Votes

No roll call votes available for this bill.

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