Pandemic relief: employees can finally access forfeited commuter benefits
H.R. 9428 — COVID–19 Commuter Benefits Distribution Act · Filed by Laura Gillen (D-NY) · 3 cosponsors · Introduced Jun 24, 2026 · Referred to committee
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What it does
This bill allows employees to withdraw unused money from employer-sponsored transportation benefit accounts (like pre-tax transit or parking accounts) accumulated between March 2020 and December 2023 — a one-time COVID relief measure. The withdrawn amount becomes taxable income, but employees keep the money instead of losing it under normal "use-it-or-lose-it" rules.
Why we flagged it
The bill is a narrowly scoped, time-limited tax relief measure allowing one-time access to forfeited commuter benefits accumulated during the pandemic. It operates through the Internal Revenue Code and affects only a specific class of deferred compensation.
What the text implies
- Employees who did not contribute to transportation accounts during 2020–2023 receive no benefit; relief is limited to those with existing balances, potentially widening equity gaps between transit-using and non-transit-using workers.
- The taxable-income treatment means the distribution will increase adjusted gross income, potentially affecting eligibility for income-based tax credits (EITC, child tax credit, education credits) and other means-tested benefits.
The full analysis lists 3 implications of this text.
Who stands to gain
employees with accumulated transportation fringe benefits; employers (reduced ongoing account administration and forfeiture liability)