The U.S. House of Representatives passed its reconciliation tax package, which includes key language from the PHIT Act. This provision would allow Americans to use pre-tax dollars on qualified physical activity expenses — such as gym memberships, fitness classes and youth sports fees.
Its inclusion follows more than two years of steadfast advocacy by HFA, working in close partnership with lawmakers, stakeholders and industry leaders to ensure that preventive health and physical activity are part of the national policy conversation.
“Including PHIT in this package is a meaningful step toward empowering Americans to take control of their health,” said Liz Clark the president and CEO of HFA. “This provision would make it easier for families to stay active and healthy, reduce the risk of chronic disease, and improve quality of life. Physical inactivity is one of our nation’s most pressing public health challenges, and PHIT is a practical, cost-effective tool to help address it.”
The PHIT Act has long been championed as a bipartisan solution to incentivize healthier behaviors through the tax code. Its inclusion in the House-passed bill represents the furthest the legislation has ever advanced since its original introduction more than a decade ago.
“We applaud the House for recognizing the critical role of physical activity in reducing long-term healthcare costs and improving lives,” added Mike Goscinski, the VP of government affairs for HFA. “Now we urge the Senate to finish the job and keep PHIT in the final package. The time to act on preventive health is now.”
Next Steps in the Legislative Process
With House passage secured, the reconciliation bill now moves to the U.S. Senate, where it will undergo review, potential amendment, and negotiation before a final vote. HFA is actively engaging with Senate offices, committee staff and allied organizations to ensure that PHIT remains part of the final legislative package.
If enacted, PHIT would allow individuals to use up to $500 annually — $1,000 for families — in pre-tax funds to cover qualified physical activity expenses, providing a powerful incentive to adopt and maintain an active lifestyle.
HFA will continue to keep members, partners and the public informed as the bill progresses and will provide opportunities for stakeholders to lend their voice to support this important policy.
