Signed on July 4, 2025, President Trump’s “One Big Beautiful Bill Act” (OBBB Act) brings sweeping changes that reshape employee benefits as we know them. For employers and HR teams, now’s the time to understand what’s changing so you can prepare for open enrollment, plan documents, and employee communications.
Here’s a closer look at the five biggest impacts:
1. Expanded HSA Eligibility & More Plan Options
Starting January 1, 2026, employees enrolled in direct primary care (DPC) arrangements may still contribute to a health savings account (HSA) — provided their DPC monthly fees stay under $150 for an individual or $300 for a family. The OBBB Act clarifies that these DPC fees count as qualified medical expenses too.
Additionally, the law broadens what qualifies as a high-deductible health plan (HDHP): all bronze and catastrophic plans available through ACA Exchanges now count. This means more employees in the individual market can contribute to HSAs than before — potentially a significant boost for recruitment and retention, especially for small businesses offering individual coverage HRAs (ICHRAs) .
2. Telehealth Exception Made Permanent
Pandemic-era relief made it possible for HDHPs to cover telehealth services before the deductible was met — but that relief was due to expire. Now, the OBBB Act makes this exception permanent. Plans can pay for telehealth visits upfront without threatening an employee’s HSA eligibility .
This is a big win for employers competing for talent in remote and hybrid workforces. Expect telehealth benefits to remain a popular part of your health plan offering.
3. Bigger Dependent Care FSA Limits
Starting in 2026, the maximum annual contribution to a dependent care FSA jumps from $5,000 to $7,500 for single filers and married couples filing jointly. For employees who file separately, the limit rises from $2,500 to $3,750 .
While this new limit isn’t indexed for inflation, it’s still welcome news for families facing rising childcare costs.
4. Permanent Student Loan Repayment Option
The pandemic-era CARES Act allowed employers to make tax-free payments on employees’ student loans, but that benefit was set to end in 2025. The OBBB Act makes this permanent — and adds an inflation adjustment for the annual $5,250 limit on educational assistance programs starting in 2027 .
Employers serious about attracting and retaining younger workers will want to keep this benefit on the table.
5. A New “Trump Account” for Kids
Perhaps the most headline-grabbing change: a brand-new tax-advantaged savings account for children under 18, dubbed the “Trump Account.” Employers may contribute up to $2,500 a year per child (adjusted for inflation) — think of it like a dependent care FSA meets a junior IRA. Plus, children born between 2025–2028 may even get a $1,000 federal kickstart .
Employers that choose to offer this benefit will need to draft a formal plan document and comply with nondiscrimination testing, much like other cafeteria plan benefits.
The Bottom Line
The OBBB Act packs plenty of “small wins” for employees — and more administrative tasks for employers. If you’re reviewing your benefits strategy, now’s the time to ensure your plan documents, payroll systems, and employee education keep pace.
Need help navigating these new rules? At Focus HR, we’re here to help you stay compliant and competitive — so your team can focus on what they do best.
