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What does the latest bill means for HR?

    July 9, 2025

    One Big Beautiful Bill for employers

     

    On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as the “One Big Beautiful Bill Act” (OBBB Act), into law.

    The OBBB Act includes changes for employee benefit plans, including provisions that:

    • Expand the availability of health savings accounts (HSAs);
    • Permanently extend the telehealth exception for high deductible health plans (HDHPs);
    • Increase the maximum annual limit for dependent care flexible spending accounts (FSAs);
    • Allow employers to help pay employees’ student loans beyond 2025 and make cost‑of‑living adjustments to the tax exclusion for educational assistance programs; and
    • Allow employers to contribute up to $2,500 per year to a new type of tax-advantaged account for children, called a “Trump Account.”

    Highlights

    Key employee benefit changes made by the OBBB Act include the following:

    • Making the telehealth exception for HDHPs permanent;
    • Increasing the maximum annual limit for dependent care FSAs;
    • Allowing employers to continue paying employees’ student loans beyond 2025;
    • Adjusting the tax exclusion for educational assistance programs for inflation; and
    • Allowing employers to make contributions to a new type of tax-advantaged savings account for children.

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    Here's When Each Part of Trump's 'Big, Beautiful Bill' Takes Effect - Newsweek

    Senate Passes No Tax on Tips and Overtime Provisions | The Employer Report

    The One Big Beautiful Bill’s Overtime and Tax Provisions – Employer Consequences – The Employer Defense Report

     

     

     

    Commentary by: Raylea Stelmach

    Edited by:

     

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