Calendar No. 544

119th CONGRESS
2d Session
S. 3333


To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes.

IN THE SENATE OF THE UNITED STATES

December 3, 2025

Mr. Young (for himself, Mr. Booker, Mr. Cassidy, and Mr. Kaine) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

August 5, 2026

Reported by Mr. Cassidy, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Emergency Savings Enhancement Act of 2025”.

SEC. 2. Amendments to the Employee Retirement Income Security Act of 1974.

Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended—

(1) by striking subsection (b) and inserting the following:

“(b) Eligible participant.—For purposes of this part, the term ‘eligible participant’, with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.”; and

(2) in subsection (d)—

(A) in paragraph (1)(A)(i), by striking “$2,500” and inserting “$5,000”; and

(B) in paragraph (3)(A)—

(i) in clause (vii), by adding “and” at the end;

(ii) in clause (viii), by striking “; and” and inserting a period; and

(iii) by striking clause (ix).

SEC. 3. Amendments to the Internal Revenue Code of 1986.

(a) Eligible participant.—Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows:

“(2) ELIGIBLE PARTICIPANT.—For purposes of this subsection, the term ‘eligible participant’, with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.”.

(b) Contribution limitation.—Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking “$2,500” and inserting “$5,000”.

(c) Conforming amendment.—Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding “and” at the end of clause (vii), by striking “; and” at the end of clause (viii) and inserting a period, and by striking clause (ix).

SEC. 4. Effective date.

The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026.

SECTION 1. Short title.

This Act may be cited as the “Emergency Savings Enhancement Act of 2025”.

SEC. 2. Amendments to the Employee Retirement Income Security Act of 1974.

Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended—

(1) by striking subsection (b) and inserting the following:

“(b) Eligible participant.—For purposes of this part, the term ‘eligible participant’, with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.”; and

(2) in subsection (d)—

(A) in paragraph (1)(A)(i), by striking “$2,500” and inserting “$5,000”; and

(B) in paragraph (3)(A)—

(i) in clause (vii), by adding “and” at the end;

(ii) in clause (viii), by striking “; and” and inserting a period; and

(iii) by striking clause (ix).

SEC. 3. Amendments to the Internal Revenue Code of 1986.

(a) Eligible participant.—Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows:

“(2) ELIGIBLE PARTICIPANT.—For purposes of this subsection, the term ‘eligible participant’, with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.”.

(b) Contribution limitation.—Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking “$2,500” and inserting “$5,000”.

(c) Conforming amendment.—Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding “and” at the end of clause (vii), by striking “; and” at the end of clause (viii) and inserting a period, and by striking clause (ix).

SEC. 4. Effective date.

The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026.

SEC. 5. Appropriations for the Employee Ownership Initiative grant program.

Section 346 of the SECURE 2.0 Act of 2022 (29 U.S.C. 3228) is amended—

(1) in subsection (d)(6), by adding at the end the following:

“(F) For fiscal years 2030 through 2035, the amount described in this paragraph for the previous fiscal year adjusted by the percent increase in the consumer price index for all urban consumers for the most recent 12-month period for which applicable data is available.”; and

(2) by striking subsection (g) and inserting the following:

“(g) Funding.—

“(1) IN GENERAL.—Except as provided in paragraph (4), the Secretary may make grants under subsection (d) in a fiscal year using amounts appropriated under paragraphs (2) and (3) for that fiscal year.

“(2) DISCRETIONARY FUNDS.—In addition to amounts appropriated under paragraph (3), there is authorized to be appropriated, for use as described in paragraph (1), not more than the following:

“(A) For fiscal year 2025, $4,000,000.

“(B) For fiscal year 2026, $7,000,000.

“(C) For fiscal year 2027, $10,000,000.

“(D) For fiscal year 2028, $13,000,000.

“(E) For fiscal year 2029, $16,000,000

“(F) For fiscal year 2033, $20,000,000.

“(G) For fiscal year 2034, $21,000,000.

“(H) For fiscal year 2035, $22,000,000.

“(3) MANDATORY FUNDS.—There is appropriated, out of any money in the Treasury not otherwise appropriated, for use as described in paragraph (1) the following:

“(A) For fiscal year 2027, $8,000,000.

“(B) For fiscal year 2028, $10,000,000.

“(C) For fiscal year 2029, $12,000,000.

“(D) For fiscal year 2030, $14,000,000.

“(E) For fiscal year 2031, $16,000,000.

“(F) For fiscal year 2032, $18,000,000.

“(4) PROGRAM ADMINISTRATION.—

“(A) IN GENERAL.—Of the amounts appropriated under paragraphs (2) and (3) for a fiscal year, the Secretary may reserve not more than 5 percent of such amounts for the administrative expenses related to the Initiative, including administration of the grant program under subsection (d).

“(B) USE OF FUNDS.—Amounts reserve under subparagraph (A) may be used for—

“(i) planning, oversight, and management of such grant program;

“(ii) monitoring of activities carried out under this section;

“(iii) personnel, training, and other administrative costs directly related to carrying out this section; and

“(iv) such other administrative activities as the Secretary determines appropriate to carry out the purposes of this section.”.

Calendar No. 544
119th CONGRESS
     2d Session
S. 3333
A BILL
To modify the eligibility requirements and account contribution maximum for pension-linked emergency savings accounts, and for other purposes.
August 5, 2026
Reported with an amendment