Reintroduction of PHIT Act Offers Opportunity for Passage in Budget Reconciliation

On March 26, lawmakers from both parties reintroduced the Personal Health Investment Today (PHIT) Act—a cost-saving solution designed to encourage more Americans to prioritize their health through physical activity.

The bill's reintroduction, which is required with each new Congress, offers a timely and fiscally responsible opportunity to address rising healthcare costs and improve nationwide access to preventive health solutions during Congress’s ongoing budget reconciliation process.

Reintroduced by US Senators John Thune (R-SD) and Chris Murphy (D-CT), and US Representatives Mike Kelly (R-PA) and Jimmy Panetta (D-CA), the bill has strong bipartisan support for expanding access to fitness through the tax code.

The bill allows Americans to use pre-tax dollars from Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to cover fitness expenses, including gym memberships, fitness classes, youth sports fees, and equipment. The PHIT Act addresses one of the biggest barriers to exercise: affordability.

“Nearly 60% of Americans say cost is a major reason they don’t use fitness facilities,” says Liz Clark, president and CEO of the Health & Fitness Association. “The PHIT Act is a smart investment in prevention. It helps families take charge of their health, supports local fitness businesses, and ultimately saves the healthcare system billions.”

HFA research shows:

• The PHIT Act could prevent up to 500,000 cases of chronic disease annually, saving an estimated $12.2 billion in healthcare costs.
• Even a modest 10% cost reduction could inspire up to 17 million more Americans to become physically active.
• The policy could generate up to $12.3 billion in additional consumer spending and create 230,000 new jobs.

PHIT enjoys overwhelming support from the public, with 85% of Americans—including majorities of Democrats (88%), Independents (86%), and Republicans (84%)—supporting the expansion of pre-tax fitness eligibility. With 61% of working Americans already accessing HSAs or FSAs, PHIT is a ready-to-implement solution with nationwide impact.

This legislation aligns with broader national goals, including the Trump Administration’s MAHA (Make America Healthy Again) agenda, which prioritizes preventive care and expanding access to fitness to improve health outcomes and reduce healthcare spending.

The HFA will push for the PHIT Act to be included in the reconciliation package during its annual Fly-In and Advocacy Summit May 5-7 in Washington, DC.

More details about the Fly-In can be found here.