A provision that would’ve allowed fitness purchases to qualify as tax-free healthcare expenses wasn’t included in the Senate-passed version of President Trump’s tax bill
The PHIT Act won’t get passed in 2025 despite the best efforts of the American fitness industry.
The United States Senate, which passed President Trump’s sweeping tax bill on Tuesday by a narrow margin, cut a provision that would’ve allowed purchases like gym memberships and fitness classes to qualify as tax-free healthcare expenses under health savings accounts (HSAs).
The provision was rooted in the PHIT Act, a piece of legislation that fitness industry stakeholders in America have been working to get passed for around two decades. The provision was initially included in a version of the tax bill passed by the House of Representatives last month, offering renewed hope that the PHIT Act would finally make it over the line.
“We are deeply disappointed that the Senate-passed reconciliation bill excluded the physical activity HSA provision, despite its thoughtful inclusion in the House version,” the Health & Fitness Association (HFA), wrote in a note to members on Tuesday. “This bipartisan measure, rooted in the PHIT Act, would have allowed Americans to use up to $500 annually ($1,000 per household) from their health savings accounts (HSA) to cover fitness and physical activity expenses.”
HFA, the leading non-profit trade organization for the American fitness industry, has championed the PHIT Act as a way to make exercise more affordable and accessible for millions of Americans.
Fitness industry leaders and political analysts expressed optimism that the bill had a serious chance of making it over the line this year, citing the Trump Administration’s stated commitment to healthcare reform under the Make America Healthy Again (MAHA) movement.
“This provision wasn’t just smart health policy. It was a targeted, bipartisan tax break for middle-class Americans,” HFA wrote. “At a time when chronic disease is on the rise and families are feeling financial pressure, it would have made staying active and healthy more affordable for millions. …. Physical activity is one of the most effective, low-cost tools to prevent disease, reduce healthcare spending and improve quality of life,” HFA wrote.
The fitness industry organization urged its members not to give up on the fight to get PHIT passed in future years.
“We urge lawmakers to revisit and restore this provision in future legislation,” HFA wrote. “Giving Americans the tools – and the tax flexibility – to invest in their own health is essential to building a stronger, more resilient nation.”
