Emergency Savings Enhancement Act of 2025
Bill journey · stage 2 of 5
Under committee review
What it doesSummary reported to senate (Aug 5, 2026)
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.
What just happenedAug 5, 2026
Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.
Who’s behind it
- Reported to SenateAug 5, 2026
- Introduced in SenateDec 3, 2025
- Aug 5, 2026Calendars
Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.
- Aug 5, 2026Committee
Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.
Health, Education, Labor, and Pensions Committee - Aug 5, 2026Committee14000
Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.
Health, Education, Labor, and Pensions Committee - Jul 30, 2026Committee
Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.
Health, Education, Labor, and Pensions Committee - Dec 3, 2025IntroReferral
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Health, Education, Labor, and Pensions Committee - Dec 3, 2025IntroReferral10000
Introduced in Senate