December 3, 2025
Mr. Young (for himself, Mr. Booker, Mr. Cassidy, and Mr. Kaine) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
August 5, 2026
Reported by Mr. Cassidy, with an amendment
Strike out all after the enacting clause and insert the part printed in italic
To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes.
Section 1. Short title
This Act may be cited as the Emergency Savings Enhancement Act of 2025
.
Sec. 2. Amendments to the Employee Retirement Income Security Act of 1974
Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended—
(1)
by striking subsection (b) and inserting the following:
(b) Eligible participant
For purposes of this part, the term eligible participant, with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.; and
(2)
in subsection (d)—
(A)
in paragraph (1)(A)(i), by striking $2,500
and inserting $5,000
; and
(B)
in paragraph (3)(A)—
(i)
in clause (vii), by adding and
at the end;
(ii)
in clause (viii), by striking ; and
and inserting a period; and
(iii)
by striking clause (ix).
Sec. 3. Amendments to the Internal Revenue Code of 1986
(a) Eligible participant
Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows:
(2) Eligible participant
For purposes of this subsection, the term
eligible participant, with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.
(b) Contribution limitation
Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $2,500
and inserting $5,000
.
(c) Conforming amendment
Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding and
at the end of clause (vii), by striking ; and
at the end of clause (viii) and inserting a period, and by striking clause (ix).
Sec. 4. Effective date
The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026.
Section 1. Short title
This Act may be cited as the Emergency Savings Enhancement Act of 2025
.
Sec. 2. Amendments to the Employee Retirement Income Security Act of 1974
Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended—
(1)
by striking subsection (b) and inserting the following:
(b) Eligible participant
For purposes of this part, the term eligible participant, with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.; and
(2)
in subsection (d)—
(A)
in paragraph (1)(A)(i), by striking $2,500
and inserting $5,000
; and
(B)
in paragraph (3)(A)—
(i)
in clause (vii), by adding and
at the end;
(ii)
in clause (viii), by striking ; and
and inserting a period; and
(iii)
by striking clause (ix).
Sec. 3. Amendments to the Internal Revenue Code of 1986
(a) Eligible participant
Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows:
(2) Eligible participant
For purposes of this subsection, the term
eligible participant, with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.
(b) Contribution limitation
Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $2,500
and inserting $5,000
.
(c) Conforming amendment
Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding and
at the end of clause (vii), by striking ; and
at the end of clause (viii) and inserting a period, and by striking clause (ix).
Sec. 4. Effective date
The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026.
Sec. 5. Appropriations for the Employee Ownership Initiative grant program
Section 346 of the SECURE 2.0 Act of 2022 (29 U.S.C. 3228) is amended—
(1)
in subsection (d)(6), by adding at the end the following:
(F)
For fiscal years 2030 through 2035, the amount described in this paragraph for the previous fiscal year adjusted by the percent increase in the consumer price index for all urban consumers for the most recent 12-month period for which applicable data is available.; and
(2)
by striking subsection (g) and inserting the following:
(g) Funding
(1) In general
Except as provided in paragraph (4), the Secretary may make grants under subsection (d) in a fiscal year using amounts appropriated under paragraphs (2) and (3) for that fiscal year.
(2) Discretionary funds
In addition to amounts appropriated under paragraph (3), there is authorized to be appropriated, for use as described in paragraph (1), not more than the following:
(A)
For fiscal year 2025, $4,000,000.
(B)
For fiscal year 2026, $7,000,000.
(C)
For fiscal year 2027, $10,000,000.
(D)
For fiscal year 2028, $13,000,000.
(E)
For fiscal year 2029, $16,000,000
(F)
For fiscal year 2033, $20,000,000.
(G)
For fiscal year 2034, $21,000,000.
(H)
For fiscal year 2035, $22,000,000.
(3) Mandatory funds
There is appropriated, out of any money in the Treasury not otherwise appropriated, for use as described in paragraph (1) the following:
(A)
For fiscal year 2027, $8,000,000.
(B)
For fiscal year 2028, $10,000,000.
(C)
For fiscal year 2029, $12,000,000.
(D)
For fiscal year 2030, $14,000,000.
(E)
For fiscal year 2031, $16,000,000.
(F)
For fiscal year 2032, $18,000,000.
(4) Program administration
(A) In general
Of the amounts appropriated under paragraphs (2) and (3) for a fiscal year, the Secretary may reserve not more than 5 percent of such amounts for the administrative expenses related to the Initiative, including administration of the grant program under subsection (d).
(B) Use of funds
Amounts reserve under subparagraph (A) may be used for—
(i)
planning, oversight, and management of such grant program;
(ii)
monitoring of activities carried out under this section;
(iii)
personnel, training, and other administrative costs directly related to carrying out this section; and
(iv)
such other administrative activities as the Secretary determines appropriate to carry out the purposes of this section.