Easing the Cost of Care: Big Changes Ahead for Dependent Care FSAs

The One Big Beautiful Bill Act of 2025 brings a long-overdue change to Dependent Care Flexible Spending Accounts (DCFSAs). Starting in 2026, the annual contribution limit will increase for the first time in nearly four decades—giving working families some much-needed breathing room when it comes to dependent care costs.

Beginning with plan years that start after December 31, 2025, the annual DCFSA contribution limit will rise from $5,000 to $7,500 per household. For individuals who are married and filing separately, the cap increases from $2,500 to $3,750.

This is a fixed increase—there is no annual inflation adjustment. While employer contributions are permitted, they remain uncommon and must be included within the same total cap.

This change offers a significant opportunity for employers to revisit plan setup, update employee communication, and make sure their teams are prepared to take advantage of the increased benefit as the 2026 plan year approaches.

To learn more about this change, reach out to your Bene-Care representative for personalized guidance.