Bills · HR 3186
IN COMMITTEE· 119TH CONGRESS
House BillHR 3186Taxation
Universal Savings Account Act of 2025
INTRO MAY 5· LAST ACTION MAY 5
READING
9MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it proposes a significant shift in how Americans can save and invest. If enacted, it would introduce a highly flexible savings tool that allows money to grow and be withdrawn tax-free, for any purpose, at any time. This stands in contrast to most current tax-advantaged accounts which typically restrict withdrawals (e.g., retirement accounts) or spending (e.g., health savings accounts).
For voters, this means a potentially simpler and more powerful way to save for life's varied expenses—whether it's an emergency fund, a child's education, a down payment, or retirement—without needing to navigate complex rules or sacrifice liquidity. If this bill does not become law, the existing system of specialized savings accounts with their specific rules and limitations will remain, and a universal, flexible, and tax-free savings option won't be available to the public, potentially limiting savings growth and accessibility for many.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes Universal Savings Accounts (USAs) as a new type of personal savings account.
This creates a brand new, all-purpose savings vehicle that offers unique benefits compared to existing accounts.
PROVISION 02
All investment earnings within a USA and all withdrawals from a USA are exempt from federal income tax.
This provides a significant tax advantage for savers, as their money grows and can be accessed without incurring tax liabilities.
PROVISION 03
Sets annual contribution limits for USAs, starting at $10,000 and adjusted for inflation, with an overall cap of $25,000.
This determines how much money individuals can save with these tax benefits each year, balancing tax incentives with revenue considerations.
PROVISION 04
Allows account holders to withdraw funds from a USA at any time, for any purpose, without penalties or additional taxes.
This provides exceptional liquidity and flexibility, making USAs suitable for both short-term and long-term savings goals.
PROVISION 05
Specifies that the account holder's interest in the USA balance is nonforfeitable, meaning the money is always theirs.
This ensures individuals have full and secure ownership of their savings within the account.
SPONSORSHIP
1 + 1
R· Tennessee
YRS IN OFFICE
5
BILLS LED
37
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 1 IND 0
ACTION TIMELINE
2 EVENTSMAY 5
Introduced in House
MAY 5
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 3186
Congress119th
StatusIn Committee
IntroducedMay 5, 2025
Last actionMay 5, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAY 5, 2025
House BillHR 3186Taxation
Universal Savings Account Act of 2025
INTRODUCED MAY 5, 2025· LAST ACTION MAY 5, 2025
PASSAGE CHANCES
—%
READING
9 min
COSPONSORS
1
COMPLEXITY
Moderate
