PLAY Act of 2026

The PLAY Act of 2026 expands tax benefits for families by allowing child and dependent care tax credits to cover youth physical activity expenses (like sports fees, fitness memberships, and equipment) up to $1,000 per taxpayer annually. It also increases dependent care flexible spending account limits to $10,000 ($12,000 for single parents) and creates a new $200 million HHS grant program to fund recreational youth sports. These grants, awarded to nonprofits, tribes, or local governments, must reduce family costs for non-competitive activities and cannot fund facility construction or elite sports programs. The bill directly affects families with children aged 4-18 and eligible community organizations aiming to increase access to affordable physical activity.