Congresswomen Deborah Ross (NC-02) and Claudia Tenney (NY-24) have introduced the People and Animals Well-being (PAW) Act, aimed at broadening eligibility for veterinary care expenses under tax-advantaged health care accounts, specifically Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs).
“Pets are more than just animals–they’re beloved members of families who bring joy, comfort, and even health benefits into our lives,” says Rep. Ross. “However, rising veterinary costs often make it challenging for families and veterans to provide care for their pets or service animals”
The Bureau of Labor Statistics reports that the cost of urban veterinary services has surged by nearly 60 percent over the past decade and increased by 7.9 percent between February 2023 and February 2024. The PAW Act seeks to ease the financial strain on families and veterans by allowing pet owners to use up to $1,000 from their HSA or FSA accounts for veterinary care or pet health insurance, making care more affordable.
“As a dog owner, I’m proud to introduce the bipartisan PAW Act, which will include veterinary care and pet insurance as eligible expenses under HSAs and FSAs to help ensure every animal lover can afford care for their pets,” adds Ross. “I’m grateful for the partnership of Congresswoman Tenney and will keep working to see this bill signed into law.”
The bill also provides additional support to veterans and individuals with disabilities by removing limits on veterinary care costs for service animals and ensuring the Internal Revenue Service (IRS) uses an updated federal definition of “service animal,” covering those trained to assist with both physical and mental disabilities, for HSA and FSA purposes.
“Our pets and service animals are cherished members of our families, and it’s essential that owners have the ability to pay for quality care,” says Rep. Tenney. “The PAW Act offers greater flexibility to pet owners by allowing them to use HSAs and FSAs for pet care expenses. This legislation will help veterans, and all pet owners afford veterinary care for their beloved pets and service animals.”
“The AVMA-endorsed People and Animals Well-being (PAW) Act helps maintain animal and human health, promotes and emphasizes the health benefits of pet ownership, and allows more people to become pet owners,” says Sandra Faeh, DVM, president of the American Veterinary Medical Association (AVMA). “Ensuring veterinary care and pet health insurance are eligible expenses under Health Savings and Flexible Spending Accounts means more affordable care for pets, greater access to care for service animals, and an enhanced ability to detect and prevent zoonotic diseases. We thank Reps. Tenney and Ross for their leadership on this issue and urge Congress to promptly pass the PAW Act.”
For more information, visit Rep. Tenney’s office website.