End Diaper Need Act Pumps $800M into Diaper Assistance and Expands HSA Coverage for Medical Supplies

The “End Diaper Need Act of 2025” is a serious attempt to tackle the high cost of essential hygiene products for families and adults who need them. For the next four years (Fiscal Years 2026 through 2029), this bill is adding a significant chunk of change—$200 million annually, totaling $800 million—to the existing Social Services Block Grant (SSBG) program, specifically earmarking it for free diapers, diapering supplies, and adult incontinence materials.

The $200 Million Question: Who Gets the Goods?

This new funding stream is designed to reduce the financial squeeze on low-income families, especially those with infants and toddlers, children with complex medical needs, and low-income adults or adults with disabilities requiring incontinence supplies. Here’s the key rule for states: they must use this federal money to supplement—not replace—any existing state funds already going toward these needs. This means if your state is already spending money on this, they can’t just cut their budget and use the federal cash instead; they have to add to the existing effort. States will work with local nonprofits and agencies to hand out the free supplies and connect families to other critical services like WIC or Medicaid.

For a working parent living paycheck-to-paycheck, the cost of diapers can easily run over $100 a month per child. This program aims to take that burden off the table entirely for those who qualify (defined as having a family income at or below 200% of the Federal poverty line). Crucially, the bill specifies that receiving this diaper assistance will not count against a family when applying for or calculating benefits for any other federal needs-based program. It’s a clean benefit, which is a smart move that prevents families from being penalized for accepting help.

Using Your Health Savings Account for Medical Diapers

Beyond direct assistance, the bill also changes the rules for tax-advantaged savings accounts like Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs). Starting January 1, 2026, “medically necessary diapers and diapering supplies” will officially be considered qualified medical expenses. This means if you have an HSA, you can use those pre-tax dollars to purchase these specific items.

This isn't just for adults. The bill defines a “medically necessary diaper” as an absorbent garment worn by someone aged three or older due to a medical condition like incontinence or severe skin issues. For example, if you are an adult with a disability or have a child over age three with complex medical needs, you can now use your HSA funds for these required supplies, including specific wipes and creams needed to prevent rashes. This provision brings necessary financial flexibility, allowing people to use their own health savings for essential hygiene that is critical to health management.

Implementation and Accountability

While the bill is clear on its goals, implementation rests heavily on the states and the local groups they partner with. The Department of Health and Human Services (HHS) will reserve a small portion of the funds (up to 2%) to hire a national 501(c)(3) organization to provide technical assistance, helping local groups run the program efficiently. States are required to submit detailed annual reports to Congress, listing the number of people served (infants, medically complex children, adults), the total items distributed, and even the ZIP codes where distribution occurred. This level of required reporting suggests a strong push for accountability, making sure the $800 million actually reaches the people who need it most, rather than getting lost in administrative overhead.