Emergency Savings Enhancement Act of 2025

Summary

Emergency Savings Enhancement Act of 2025 This bill expands eligibility and increases the maximum contribution limit for pension-linked emergency savings accounts (PLESAs). As background, PLESAs are savings accounts that are established and maintained in connection with a defined contribution retirement plan, such as a 401(k). Contributions to such accounts are subject to federal income tax, and withdrawals are allowed for any reason. The bill expands eligibility for PLESAs by eliminating the exclusion of highly compensated employees. Thus, under the bill, individuals who meet the age, service, and other eligibility requirements of the plan, regardless of compensation, are eligible to participate in such a plan. The bill also increases the maximum limit on the portion of a PLESA balance attributable to participant contributions to $5,000 (from $2,600 in 2026). This limit continues to be adjusted for inflation. The bill also extends and provides additional funding for a Department of Labor program that awards grants to states to promote employee ownership and participation in businesses.

Summary from the Congressional Research Service. How we handle summaries

Where it stands

Out of committee and scheduled for a vote by the full chamber.

Senate Committee on Health, Education, Labor, and Pensions · U.S. Senate

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Cosponsors

Related bills

• H.R. 6417Emergency Savings Enhancement Act of 2025Related bill

As identified by Congress.gov.

Full history

1. Aug 5, 2026

   Reported out of committee

   Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.

2. Aug 5, 2026

   Reported out of committee

   Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.

3. Aug 5, 2026

   Placed on Senate Legislative Calendar Under General Orders. Calendar No. 544.

   Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.

   U.S. Senate

4. Jul 30, 2026

   Reported out of committee

   Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.

5. Jul 30, 2026

   In committee

   Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.

   U.S. Senate

Read the record

• Read on Congress.gov (opens in a new tab) The official record on Congress.gov.