U.S. Senators Todd Young (R-Ind.) and Cory Booker (D-N.J.) have introduced the Emergency Savings Enhancement Act, aiming to help American workers and families save for unexpected expenses without needing to use their retirement funds.
“As a father of four, I understand the impact that unexpected expenses can have on a family budget. Our bill will provide workers and families with additional options to build savings for unexpected expenses, without tapping into retirement savings. If passed, our bill will support Indiana families and build financial security for working Hoosiers,” said Senator Young.
Senator Booker stated, “For millions of working families, an unexpected expense can quickly push them into financial turmoil—even more so as families face rising costs of rent, groceries, and other essentials. In 2022, Senator Young and I passed legislation to create emergency savings accounts to help families weather these storms while also saving for their retirement. Today, we are introducing a proposal building on that progress, enhancing emergency savings accounts to help strengthen workers’ financial stability and support their path to a secure retirement.”
The new bill proposes modifications to pension-linked emergency savings accounts (PLESAs), expanding on previous efforts made by both senators in 2022. That year’s Emergency Savings Act authorized PLESAs so workers could set aside funds for emergencies alongside their retirement accounts—a measure now law through its inclusion in the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022.
The Emergency Savings Enhancement Act is supported by several organizations including BPC Action, U.S. Chamber of Commerce, National Taxpayers Union, Alight, Aspen Institute, Commonwealth, Financial Finesse, Progressive Policy Institute, Prosperity Now, SaverLife, Sunny Day Fund, Third Way, T. Rowe Price, UnidosUS, Vestwell, Voya, and WISER.
Michele Stockwell, President of BPC Action said: “Too many working Americans are one emergency expense away from financial hardship. This commonsense bill led by Sens. Todd Young (R-IN) and Cory Booker (D-NJ) and Reps. Eugene Vindman (D-VA) and Glenn ‘GT’ Thompson (R-PA), tackles that problem by making it easier for employers to help their workers automatically save for an emergency alongside their retirement accounts. By passing the Emergency Savings Enhancement Act of 2025 Congress can build on the progress of the bipartisan SECURE 2.0 Act and strengthen middle class financial security.”
In the House of Representatives companion legislation is being led by Eugene Vindman (D-VA-07) and Glenn “GT” Thompson (R-PA-15).
The proposed changes aim to make it easier for employers to offer automatic enrollment in PLESAs as part of workplace benefits packages—an approach intended to encourage broader adoption among both employers and employees.