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S3333119th CongressWALLET

Emergency Savings Enhancement Act of 2025

Sponsored By: Senator Young, Todd [R-IN]

In Committee

Summary

This bill would raise the emergency savings contribution limit to $5,000 for certain workplace savings accounts and clarify who counts as an eligible participant, while creating a funded employee ownership grant program.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Bigger emergency savings for workers

If enacted, this bill would let eligible participants contribute up to $5,000 a year into certain emergency savings accounts. That is $2,500 more than the prior $2,500 limit. The change would apply for taxable years beginning after December 31, 2026. The bill would also treat anyone who meets a plan's age, service, and other eligibility rules as an "eligible participant," which could let more workers use these accounts.

Grants to support employee ownership

If enacted, the government would fund an Employee Ownership Initiative with specified grants from fiscal years 2025 through 2035. The bill would authorize discretionary amounts such as $4 million in FY2025 and $22 million in FY2035. It would also provide mandatory Treasury appropriations for FY2027–FY2032, rising from $8 million in FY2027 to $18 million in FY2032. For each fiscal year, the Secretary would be allowed to reserve up to 5 percent for administrative expenses, and amounts for FY2030–FY2035 would be adjusted by CPI-U.

Sponsors & CoSponsors

Sponsor

Young, Todd [R-IN]

IN • R

Cosponsors

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 12/3/2025

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 7/21/2026

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 7/21/2026

Roll Call Votes

No roll call votes available for this bill.

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