# 119-s-1940: READY Accounts Act

119-s-1940, READY Accounts Act, is a 119th Congress bill sponsored by Sen. Scott, Rick [R-FL] (R-FL); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-1940
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1940
- Congress: 119
- Title: READY Accounts Act
- Status: introduced
- Introduced: 2025-06-04
- Sponsor: Sen. Scott, Rick [R-FL] (R-FL)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Creates tax-deductible READY accounts that help homeowners save and spend tax-free on certified home disaster mitigation and unreimbursed recovery for their principal residence.** The bill would let individuals deduct cash contributions up to $4,500 per year and withdraw those funds tax-free for qualified mitigation work or repairs that meet certification rules. - Families and homeowners: Can use account money for certified mitigation measures and for repairing fire, storm, or casualty damage that insurance did not cover. Examples include impact-resistant windows and doors, roof replacement, elevating a home, and strengthening roof-to-wall connections. - Savers and taxpayers: Contributions are deductible up to $4,500 annually and the limit is inflation-adjusted beginning after 2026. Nonqualified withdrawals are included in income and generally face a 20% penalty, and excess contributions incur a 6% tax. - Banks, trustees, and administrators: READY accounts must be U.S. trusts with a qualified trustee, cannot hold life insurance contracts, allow 60-day rollovers, and include rules for divorce and death transfers.

## Cosponsors (1)

- Sen. Schiff, Adam B. [D-CA] (D-CA), 2025-09-15T00:00:00.000Z

## Provisions PRIA read

- Tax break for home disaster savings: benefit, high. If enacted, you would be able to deduct up to $4,500 a year for cash you put into a READY account. After 2026, the $4,500 limit would rise with inflation and be rounded down to the nearest $50. A READY account would be a trust set up in the United States. It must be run by an approved trustee. Cont…
- Rules and penalties for READY accounts: mixed, medium. If enacted, you could avoid tax on a READY distribution by rolling it into another READY account for the same person within 60 days, but only one tax-free rollover is allowed each year. If you overcontribute, you could take back the excess plus any earnings before your tax filing deadline; the earn…

## Related bills

- 119-s-4949: Water Resources Development Act of 2026
- 119-s-1541: SHIPS for America Act of 2025
- 119-s-2120: Older Americans Act Reauthorization Act of 2025
- 119-s-1748: Kids Online Safety Act
- 119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026
- 119-s-1241: Sanctioning Russia Act of 2025

## Sources
- [119-s-1940 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1940)

## Related
- [119-s-4949: Water Resources Development Act of 2026](https://policyrisk.com/legislation/119-s-4949)
- [119-s-1541: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-s-1541)
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026](https://policyrisk.com/legislation/119-s-5025)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1940 (as of 2025-12-21).