Emergency Savings Enhancement Act of 2025
The source supplies the latest action, but no lifecycle stage.
Latest action (5 Aug 2026): Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.
What this bill does
S. 3333, the Emergency Savings Enhancement Act of 2025, would amend both the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to change rules for pension-linked emergency savings accounts. It would broaden who counts as an "eligible participant" in these accounts, raise the maximum allowable account balance from $2,500 to $5,000, and remove an existing provision (clause (ix)) related to eligibility criteria. These changes would apply to taxable years beginning after December 31, 2026. The bill also amends the SECURE 2.0 Act's Employee Ownership Initiative Grant Program, adding an inflation adjustment for certain future-year funding amounts and revising the program's funding structure, including specified discretionary appropriation levels through fiscal year 2035 and mandatory appropriations for fiscal years 2027 through 2032, with up to 5% of funds reservable for administrative costs.
The bill primarily affects employees covered by workplace retirement plans that offer emergency savings accounts, as well as administrators of such plans and the Employee Ownership Initiative Grant Program, which supports employee ownership efforts.
S. 3333 was introduced by Senator Todd Young on December 3, 2025, and referred to the Senate Committee on Health, Education, Labor, and Pensions. On August 5, 2026, the committee ordered the bill reported with an amendment in the nature of a substitute, replacing the original text with the version described above. The bill would next need to be considered by the full Senate before any further action in the House.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Emergency Savings Enhancement Act of 2025
This bill expands eligibility and increases the maximum contribution limit for pension-linked emergency savings accounts (PLESAs).
As background, PLESAs are savings accounts that are established and maintained in connection with a defined contribution retirement plan, such as a 401(k). Contributions to such accounts are subject to federal income tax, and withdrawals are allowed for any reason.
The bill expands eligibility for PLESAs by eliminating the exclusion of highly compensated employees. Thus, under the bill, individuals who meet the age, service, and other eligibility requirements of the plan, regardless of compensation, are eligible to participate in such a plan.
The bill also increases the maximum limit on the portion of a PLESA balance attributable to participant contributions to $5,000 (from $2,600 in 2026). This limit continues to be adjusted for inflation.
The bill also extends and provides additional funding for a Department of Labor program that awards grants to states to promote employee ownership and participation in businesses.
Timeline
5 Aug 2026
Placed on Senate Legislative Calendar under General Orders. Calendar No. 544.
Common questions
- What does S. 3333 do?
- S. 3333, the Emergency Savings Enhancement Act of 2025, would amend both the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to change rules for pension-linked emergency savings accounts. It would broaden who counts as an "eligible participant" in these accounts, raise the maximum allowable account balance from $2,500 to $5,000, and remove an existing provision (clause (ix)) related to eligibility criteria. These changes would apply to taxable years beginning after December 31, 2026. The bill also amends the SECURE 2.0 Act's Employee Ownership Initiative Grant Program, adding an inflation adjustment for certain future-year funding amounts and revising the program's funding structure, including specified discretionary appropriation levels through fiscal year 2035 and mandatory appropriations for fiscal years 2027 through 2032, with up to 5% of funds reservable for administrative costs. The bill primarily affects employees covered by workplace retirement plans that offer emergency savings accounts, as well as administrators of such plans and the Employee Ownership Initiative Grant Program, which supports employee ownership efforts. S. 3333 was introduced by Senator Todd Young on December 3, 2025, and referred to the Senate Committee on Health, Education, Labor, and Pensions. On August 5, 2026, the committee ordered the bill reported with an amendment in the nature of a substitute, replacing the original text with the version described above. The bill would next need to be considered by the full Senate before any further action in the House.
- Has S. 3333 become law?
- The source does not supply a confirmed lifecycle stage for S. 3333. Check the latest action and official source below.
- Who sponsored S. 3333?
- S. 3333 was sponsored by Sen. Young, Todd [R-IN] (R-IN), with 3 cosponsors.
- What's the latest action on S. 3333?
- Placed on Senate Legislative Calendar under General Orders. Calendar No. 544. (5 Aug 2026).
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