Bill expands health savings accounts for workers.

What it does

The Fair Care Act of 2026 expands health savings accounts. Employers can put twice as much money into these accounts. Employers can use these accounts instead of regular health insurance. States can put federal money into these accounts instead of lowering costs. The bill stops tax breaks for flexible spending accounts, health reimbursement arrangements, and Archer MSAs. New companies started after 2026 can only give workers health savings account money.

Who it affects

Workers who get health insurance through jobs are affected. Lower-income workers and sicker workers lose help paying costs. Younger, healthier, richer workers may benefit more.

One thing to notice

New companies after 2026 must offer only health savings accounts. Existing companies can keep offering regular insurance.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• May 14, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 14, 2026 — Referred to House Committee on House Administration and House Committee on Armed Services · Congress.gov: “Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• health savings accounts — Savings accounts where workers put pre-tax money to pay for medical costs.
• flexible spending accounts — Work accounts where employees set aside pre-tax money for health and dependent care.
• health reimbursement arrangements — Employer-funded accounts that pay back workers for qualified medical expenses.