Diapers and Incontinence Supplies Get Major Federal Boost: $200 Million Annually Earmarked for Low-Income Families and Tax Benefits Expanded

The End Diaper Need Act of 2025 is trying to tackle a problem that hits hard, especially for young families and caregivers: the cost of diapers and adult incontinence supplies. Essentially, this bill is doing two big things: significantly boosting federal funding for direct supply distribution and making it easier to pay for certain supplies using tax-advantaged health accounts.

Starting in fiscal year 2026 and running through 2029, the bill pumps an extra $200 million annually into the Social Services Block Grant (SSBG) program, specifically earmarking the money for diaper assistance. This is on top of increasing the total SSBG pool to $1.9 billion annually. States receiving this money must use it to work with local groups—like diaper banks and nonprofits—to hand out free supplies to low-income families, medically complex children, and low-income adults with disabilities. The goal is simple: reduce the financial strain of buying these essential items.

The Cash Boost: What This Means on the Ground

If you’re a parent trying to make ends meet, or if you’re caring for an aging relative or a child with special needs, you know these costs add up fast. The bill defines "low-income" as having a family income up to 200% of the Federal Poverty Line (FPL). For these families, the state-funded programs must provide things like standard diapers, wipes, rash cream, and adult incontinence materials. Crucially, the bill requires states to use this new money to supplement, not replace, any existing state funding for these purposes, ensuring a net increase in support.

For example, if you qualify, the supplies you receive won't count against you when determining eligibility for other federal programs like SNAP or housing assistance. The bill explicitly states that these benefits are disregarded income, which is a huge win for families navigating the complex world of means-tested aid. States are required to report detailed data on exactly how many people they help, where they are, and what supplies they distribute between 2026 and 2029, which should provide a clear picture of the program's effectiveness.

Tax-Free Relief for Medically Necessary Supplies

The second major component of the bill focuses on tax policy, bringing some welcome relief for those with ongoing medical needs. Starting after December 31, 2025, the bill expands the definition of qualified medical expenses for Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs). This means you can now use your tax-free dollars from these accounts to purchase medically necessary diapers and diapering supplies.

This change is significant because it treats these essential items the same way menstrual care products are currently treated under tax law. The bill defines "medically necessary diaper" as an absorbent garment for anyone three years or older due to a medical condition causing incontinence or severe skin issues. This provision is a game-changer for families with older children or adults with disabilities who rely on these supplies daily, effectively lowering the out-of-pocket cost by making them eligible for tax-advantaged purchasing.