Federal News Roundup for Dec. 19, 2025

IRS Document Unpacks HSA Changes Under H.R. 1 Law

On Tuesday, Dec. 9, the U.S. Internal Revenue Service (IRS) issued Notice 2026-5, providing administrative and procedural guidance on the expanded availability of health savings accounts (HSAs) under the July 2025 H.R. 1 law (also known as the One Big Beautiful Bill Act, or OBBBA).

The changes brought about by H.R. 1 expanded the availability of HSAs by:

Permanently extending the ability to receive telehealth and remote care services before meeting the high-deductible health plan (HDHP) deductible while remaining HSA-eligible;
Allowing individuals enrolled in certain direct primary care (DPC) arrangements to contribute to HSAs and use their HSA funds tax-free to pay periodic DPC fees; and,
Designating bronze and catastrophic plans available through an Affordable Care Act (ACA) Exchange as HSA-compatible, regardless of whether they satisfy the requirements for HDHPs.

The document includes a “questions and answers” section to help employers and plan participants increase their understanding of the changes. For instance, regarding telehealth and remote care services:

Question: May an otherwise eligible individual contribute to an HSA for 2025 if, before the OBBBA was enacted on July 4, 2025, the individual was enrolled in a health plan that provided coverage for telehealth or other remote care services before the minimum deductible was satisfied but the health plan otherwise satisfied the requirements to be treated as an HDHP?
Answer: Yes, an otherwise eligible individual may contribute to an HSA for 2025 if, before the OBBBA was enacted, the individual was enrolled in a health plan that provided coverage for telehealth or other remote care services before the minimum deductible was satisfied, if the health plan otherwise satisfied the requirements to be treated as an HDHP. This is true regardless of whether the contribution is made before or after July 4, 2025.

Guidance Document Shares More Details on Trump Accounts

The Department of the Treasury and the IRS recently issued an information notice regarding Trump Accounts, an individual retirement account (IRA) option for eligible children that was created under the H.R. 1 law.

Notice 2025-68 provides a general overview of how Trump Accounts work and addresses certain initial questions about:

Creating initial and rollover accounts;
The $1,000 pilot program contribution;
Other contributions (e.g., qualified general contributions, Section 128 employer contributions);
Eligible investments; and,
Reporting and coordination with rules applicable to other types of IRAs.

For instance, the notice states that, under an employer’s Trump Account contribution program, the employer may contribute up to $2,500 per year to the account of an employee or the employee’s dependent (which counts against the person’s aggregate $5,000 annual limit). The contribution will not count toward that employee’s taxable income.

Fifth Circuit Declines to Rehear NLRB Case Against ExxonMobil

The Fifth Circuit Court of Appeals on Wednesday, Dec. 17, voted 13-4 to decline rehearing a case that found ExxonMobil (ExxonMobil Research & Engineering Company, Inc. v. National Labor Relations Board) failed to bargain in good faith over supervisor paid time off (PTO) and unlawfully suggested employees would benefit from decertifying its union.

Following collective bargaining negotiations at a New Jersey ExxonMobil research facility in 2018, an administrative law judge (ALJ) found ExxonMobil violated the National Labor Relations Act (NLRA). In September 2020, under the first administration of President Donald Trump, a three-member NLRB panel unanimously held that no labor violations occurred. In January 2022, though, during the administration of President Joe Biden, the board notified ExxonMobil that it intended to vacate its previous decision and rehear the case. On Aug. 25, 2023, the board issued a new decision that affirmed the ALJ’s findings. ExxonMobil filed a petition for review of the board’s actions, and the board filed a cross-petition for enforcement of the 2023 decision.

Circuit Judge Andrew S. Oldham slammed the board in Wednesday’s 15-page ruling document, stating, “The NLRB made a naked power grab, and it prioritized political gamesmanship over finality and repose. In doing so, it revealed many of the constitutional problems associated with so-called independent agencies. And, it illustrated what happens when such agencies are allowed to operate unconstrained by presidential oversight and basic rule-of-law principles.”

DOL and EBSA Withdraw Defense of Biden-Era Fiduciary Rule

The Department of Labor (DOL) and its Employee Benefits Security Administration (EBSA) recently withdrew its defense of the Biden administration’s 2024 fiduciary rule, which had sought to place retirement investment advice — including one-time guidance on rollovers from 401(k) and similar accounts — under a fiduciary obligation. This formal move formally concludes a prolonged legal battle that began after the rule was finalized in 2024 and quickly faced challenges from industry groups.

After three delays earlier this year, EBSA filed an unopposed motion to dismiss its appeal in the U.S. Fifth Circuit Court of Appeals, effectively abandoning its efforts to implement the rule. The appeal had originally challenged stays issued by the U.S. District Courts for the Northern and Eastern Districts of Texas, both of which had blocked enforcement of the rule in July 2024.

The 2024 fiduciary rule aimed to expand the definition of a fiduciary for retirement investors. However, opponents argued the DOL exceeded its authority under the Employee Retirement Income Security Act (ERISA) and that the rule suffered from similar flaws as the Obama-era version overturned by the 5th Circuit in 2018.

Republican Lawmakers Warn Against Rise in ERISA Lawsuits

The House of Representatives Subcommittee on Health, Employment, Labor and Pensions (HELP) recently held a hearing to examine the rise in class-action lawsuits against ERISA plans and their impact on American retirement plan participants. Republican members of the committee said aggressive “sue-and-settle” tactics are putting these plans — and, ultimately, workers — at risk.

Republican committee members, citing data from Goodwin Law Firm, stated 62 ERISA class-action lawsuits were filed in 2024, generating roughly $174 million in settlements. During the hearing, the American Retirement Association (ARA) and the Insured Retirement Institute (IRI) submitted formal statements warning formulaic ERISA lawsuits are discouraging plan innovation and diverting resources from participant benefits.

To address such concerns, Rep. Randy Fine (R-Fla.) introduced the ERISA Litigation Reform Act (H.R. 6084), which aims to raise pleading standards and limit early stage discovery until courts verify the legal sufficiency of claims.

“There are bad actors that need to be sued, but there are also plenty of bad lawyers who take advantage of the system,” Fine said. “What my bill intends to do is to strike that balance to give people the opportunity to sue when that bad [action] does take place but also to protect people from having their retirement savings sucked away from unscrupulous lawyers.”

Proponents argue the reforms would preserve plan integrity and reduce the chilling effect litigation is having on plan design and services. Democratic members of the committee denounced the need for such reforms.

“We are rushing ahead with legislation on an issue that is far from a crisis,” Rep. Joe Courtney (D-Connecticut) said during the hearing.

House Bill Seeks to Provide Pay Protection for App-Based Workers

Reps. Pramila Jayapal (D-Washington), Donald Norcross (D-New Jersey) and Ilhan Omar (D-Minnesota) on Thursday, Dec. 11, introduced legislation to promote compensation transparency and accountability for app-based workers. The Empowering App-Based Workers Act seeks to put guardrails on digital labor platforms (e.g., Uber, Lyft, DoorDash, Amazon) to ensure automated work-assignment and transaction decisions do not lead to discrimination and price-gouging.

According to the bill sponsors, in 2024, Uber and Lyft both regularly paid drivers less than minimum wage while increasing costs paid by consumers. These corporations’ “take rates,” or the percentage of a ride-fare that they keep, is often around 40% but can be as high as 70% on individual rides.

The legislation would:

Require detailed weekly pay statements and itemized receipts for workers;
Require disclosure of electronic monitoring systems and how those are used to make automated decisions regarding work assignments;
Ensure ride-hail drivers receive at least 75% of the total amount paid by a consumer for each transaction; and,
Prohibit app-based platforms from violating “equal pay for equal work” by offering or paying different amounts to workers performing substantially similar or comparable work.

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