COVID–19 Commuter Benefits Distribution Act

Key Points

• This bill would let workers take a one-time cash payment from their workplace commuter benefit accounts. These accounts are usually used to pay for things like bus passes, train tickets, or parking with pre-tax money.
• Many people stopped commuting during the pandemic but still had money sitting in these accounts that they could not spend. Under current rules, that money often stays stuck in the account or is lost if the worker leaves their job.
• If this bill passes, workers could withdraw an amount up to the highest balance their account reached between March 2020 and the end of 2023. This gives people a way to get back money they set aside but never used.
• The money taken out would be treated as regular income. This means workers would have to pay taxes on the cash they receive, unlike when the money is used for actual transit costs.
• Workers would only have a six-month window to request this cash-out after the bill becomes law. It is designed as a temporary fix for those who ended up with large balances due to remote work.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.