PHIT Act of 2025

# PHIT Act of 2025 Summary **What the Bill Would Do:** The PHIT Act of 2025 (S 1144) would allow individuals to use pre-tax dollars from Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to pay for certain fitness and wellness activities. Currently, these tax-advantaged accounts can only be used for medical expenses like doctor visits and prescription medications. If passed, this bill would expand what qualifies as an eligible expense to include gym memberships, fitness classes, sports equipment, and similar physical activity programs. **Who It Affects and Key Provisions:** The bill would primarily benefit people who have HSAs or FSAs through their employer health insurance plans.

By allowing tax-free spending on fitness activities, supporters argue it would encourage healthier lifestyles while giving workers a tax break. Employees could redirect pre-tax income toward wellness without paying federal income taxes on those funds, potentially saving money on both fitness costs and taxes. **Current Status:** As of now, the bill is in committee (S 1144, 119th Congress), meaning it has been introduced but has not yet been debated or voted on by the full Senate. The bill was sponsored by Senator John Thune (R-SD).