Senator Cornyn Promotes Working Families Tax Cuts Act to Boost Texas Small Businesses and Families

$5,000 dependent care FSA limit had not been permanently increased since 1986 — the new law raises it 50% to $7,500

Average annual child care cost hit $13,128 in 2024 — the new $7,500 FSA limit covers about 57% of that

36% of private-sector workers had access to dependent care FSAs — dropping to 16% for the lowest-paid quartile

The extra $2,500 in pre-tax FSA savings translates to roughly $625–$875 per year for a participating family, depending on tax bracket

CBO estimated the full One Big Beautiful Bill Act — which includes the FSA provision — increases deficits by $3.4 trillion over 10 years