S-1565-119
Read twice and referred to the Committee on Finance.
Sponsored by Jacky Rosen (D-NV)
What it does
The Lowering Costs for Caregivers Act of 2025 would make changes to federal tax law intended to reduce out-of-pocket costs for individuals who provide care for family members. The specific tax provisions — such as credits, deductions, or exclusions — are not detailed in the available bill text, as the bill has only been introduced and referred to the Senate Finance Committee. Based on the bill's title and category, it would likely modify existing tax treatment of caregiving expenses or create new tax benefits for caregivers.
Who benefits
Family caregivers — estimated at over 53 million Americans — who bear out-of-pocket costs for caring for elderly parents, disabled spouses, or children with special needs. Lower- and middle-income caregivers who currently cannot afford professional care services. Indirectly, care recipients who may receive better or more consistent care if their caregivers face lower financial strain. Tax preparers and financial advisors who assist clients in claiming new benefits.
Who is hurt
The federal government would collect less tax revenue, which could affect funding for other programs or increase the deficit. Higher-income taxpayers who do not qualify for means-tested provisions may bear a relatively larger share of the tax burden. Professional caregiving agencies or facilities could face indirect competitive pressure if tax incentives encourage more family-based care over paid services. Future taxpayers may bear costs if the revenue reduction is not offset.
Supporters argue
Supporters argue that family caregivers provide an estimated $470 billion in unpaid labor annually (AARP, 2023), absorbing costs that would otherwise fall on public programs like Medicaid. They contend that targeted tax changes would recognize this economic contribution, help caregivers stay in the workforce, and reduce financial hardship for millions of families who have no practical alternative to providing care themselves.
Opponents argue
Opponents argue that tax-based approaches primarily benefit higher-income households with larger tax liabilities, doing little for low-income caregivers who owe little or no federal income tax. They contend that the revenue cost of new tax benefits could reduce funding available for direct caregiving support programs — such as Medicaid home- and community-based services — that reach a broader and more economically vulnerable population.