Tax break for private cord banking—but only wealthy families benefit
H.R. 2810 — Family Cord Blood Banking Act · Filed by Jodey Arrington (R-TX) · 4 cosponsors · Introduced Apr 10, 2025 · Referred to committee
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What it does
This bill allows families to deduct the cost of storing their baby's umbilical cord blood or tissue at private banks as a medical expense on their federal income taxes, starting in 2025. Currently, these banking fees are not tax-deductible; the bill treats them the same as other out-of-pocket medical costs, reducing the after-tax cost of private cord banking for families who use it.
Why we flagged it
The bill's sole operative mechanism is a tax deduction—it adds private cord blood and tissue banking to the list of deductible medical expenses under IRC §213(d)(1). This is a direct tax expenditure benefiting families who purchase private banking services.
What the text implies
- The deduction applies only to 'accredited bank[s] in compliance with regulations under section 361 of the Public Health Service Act'—the bill does not define 'accredited' or cite the specific regulations, creating potential ambiguity about which private banks qualify and leaving room for regulatory interpretation.
- The deduction incentivizes private cord banking over public/altruistic cord banking (which is not subsidized), potentially shifting donation patterns away from public banks that serve research and transplant needs.
The full analysis lists 4 implications of this text.
Who stands to gain
private umbilical cord blood and tissue banking companies; accredited cord banking service providers; higher-income households with sufficient medical expenses to itemize deductions