Family Cord Blood Banking Act

Bill Number

H.R. 2810

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-04-10: Referred to the House Committee on Ways and Means.

Last Updated

2025-12-19T09:07:33Z

AI-Generated Summary

Summary of H.R. 2810: Family Cord Blood Banking Act

Purpose

This bill aims to allow taxpayers to deduct costs for private umbilical cord blood or umbilical cord tissue banking services as qualified medical expenses under the U.S. tax code. Umbilical cord blood and tissue banking involves storing a newborn's stem cells from the umbilical cord after birth for potential future medical use, such as treating diseases. By treating these services as medical expenses, the legislation seeks to make them more affordable through tax benefits.

Key Provisions

• Amendment to Tax Code: The bill modifies Section 213(d)(1) of the Internal Revenue Code of 1986, which defines "medical care" for tax deduction purposes. It adds a new subparagraph (E) to include amounts paid for private umbilical cord blood or tissue banking services.
• Eligibility Requirements: These services must be provided by an accredited bank that complies with regulations under Section 361 of the Public Health Service Act (which governs the safety and handling of biological products to prevent the spread of communicable diseases).
• Effective Date: The changes apply to taxable years beginning after December 31, 2024, meaning deductions would first be available on 2025 tax returns filed in 2026.

Significant Changes to Existing Law

• Expansion of Medical Expenses: Prior to this bill, medical care expenses eligible for deduction (up to 7.5% of adjusted gross income for itemized deductions) did not explicitly include private cord blood or tissue banking. This amendment broadens the definition to cover these specific services, provided they meet the accreditation and compliance standards.
• No Other Alterations: The bill does not change deduction limits, income thresholds, or other aspects of medical expense deductions; it solely adds this new category.

Potential Impacts

• On Citizens: Families planning to use private cord blood banking (as opposed to public donation) could save money through tax deductions, potentially increasing access to this service for preserving stem cells for personal or family medical needs. This might encourage more families to opt for private banking over public options.
• On Government Agencies: The Internal Revenue Service (IRS) would process these new deductions, which could slightly increase administrative workload but also lead to a minor reduction in federal tax revenue (estimated impacts would depend on usage rates, though not specified in the bill).
• On International Relations: No direct impacts, as the bill focuses on domestic tax policy and U.S.-regulated health services.

Main Stakeholders Affected

• Families and Individuals: Parents or expectant parents who pay for private cord blood or tissue banking services, gaining potential tax relief.
• Private Banking Providers: Accredited cord blood banks that comply with federal health regulations, which may see increased demand due to tax incentives.
• Taxpayers and Government: The IRS and U.S. Treasury, as they manage deductions and any resulting revenue effects; broader taxpayers indirectly through potential shifts in federal revenue.
• Public Health Entities: Organizations overseeing compliance with the Public Health Service Act, ensuring banking services meet safety standards.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The amendment aligns with existing tax code flexibility for medical expenses, promoting preventive health measures like stem cell preservation without creating new regulatory burdens. It requires banks to adhere to established public health rules, avoiding conflicts with federal oversight of biological materials.
• Constitutional Implications: None apparent; the bill involves standard congressional authority over taxation and does not infringe on individual rights or state powers.
• Political Implications: As a bipartisan bill (introduced by representatives from both parties), it could appeal to pro-family and health policy interests. It may spark debate on subsidizing private vs. public health options through tax policy, but the narrow scope limits broader controversy. If enacted, it sets a precedent for expanding tax deductions to emerging medical technologies.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Arrington, Jodey C. [R-TX-19]

Cosponsors (4)

Rep. Panetta, Jimmy [D-CA-19], Rep. Davis, Donald G. [D-NC-1], Rep. Tenney, Claudia [R-NY-24], Rep. Bilirakis, Gus M. [R-FL-12]

Recent Actions

• 2025-04-10: Referred to the House Committee on Ways and Means.
• 2025-04-10: Introduced in House
• 2025-04-10: Introduced in House

Bill Versions

• Family Cord Blood Banking Act — issued 2025-04-10 — PDF (2 pages)