The HSAs For Heroes Act expands Health Savings Account (HSA) eligibility and benefits for military veterans and individuals providing caregiving. The bill allows any veteran who served honorably in the military to contribute to an HSA, regardless of whether they have a service-connected disability—broadening eligibility beyond current law. It also permits HSA distributions without penalty during periods when individuals are on leave to provide family care under the Family and Medical Leave Act, making these withdrawals tax-free. Additionally, the bill eliminates the requirement that HSA account holders must be enrolled in a high-deductible health plan and increases the annual contribution limit to $9,000 (or $18,000 for joint returns). The law takes effect for tax years beginning after December 31, 2025, and requires the Treasury Department to report to Congress annually on veteran participation, contribution amounts, and any issues with fraud or benefit duplication, while ensuring the changes do not reduce existing veterans' benefits or create double coverage.
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