After the end of the first quarter of 2023, we have a better picture about the legislative prospects for consumer-directed plans this year. Consumer-directed plans provide a tax-effective means of funding everyday expenses such as health care and childcare. In Congress, governing majorities have been set and committees have been established. In addition, the Biden/Harris Administration has released its budget that outlines its priorities for the year.

Congressional outlook

Republicans are in the majority in the House of Representative; but it is a slim and fractious majority as witnessed by the 15 votes that were needed to install Rep. Kevin McCarthy (R-Calf) as Speaker of the House. Rep. Hakeem Jefferies became House Minority Leader, with the former Democratic House leadership of Reps. Nancy Pelosi (D-Calf) and Steny Hoyer (D-MD) stepping down from the leadership posts they held for years. Once the Speaker was elected, committee assignments were made. The committees that have jurisdiction over consumer-directed account plans are the Ways and Means Committee (Jason Smith (R-MI) is the new Chairman), the Education and the Workforce Committee (Virginia Foxx (R-NC) returning as Chairwomen of the Committee), and the Energy and Commerce Committee (Rep. Cathy McMorris Rodgers (WA-R) is the new Chair).

With the number of new members in the House of Representatives, there are many members who do not have experience with the issues under their committee's jurisdiction. Consequently, policy advocates will educate these newer members on the issues of concern. In the health care and childcare arena, these members need to learn about consumer-directed plans and how they provide help to working Americans to afford these expenses.