Improving Diaper Affordability Act of 2023

This bill would allow diapers to be counted as qualified medical expenses under federal tax law, enabling low-income families with infants and toddlers to use pre-tax funds from health savings accounts, dependent care benefits, and flexible spending arrangements to cover diaper costs. It also prohibits states and localities from imposing sales tax on diaper purchases. These changes directly benefit families who spend up to 14% of their income on diapers - over 5 million children in low-income households face this burden. The policy aims to reduce financial strain by expanding access to tax-advantaged spending for a basic need.