DCAP Update: Dependent Care FSAs Get Long-Overdue Boost
On July 4, 2025, working families received a big win for out-of-pocket child and dependent care costs. The One Big Beautiful Bill Act of 2025 permanently increased the Dependent Care FSA annual limit from $5,000 to $7,500 for plan years starting after 12/31/2025 – a 50% boost that employee benefits professionals have been championing for years. This is the first significant enhancement to these accounts since their inception in 1986, marking a historic shift that