Overview
Title
To amend the Internal Revenue Code of 1986 to increase the standard charitable mileage rate for delivery of meals to elderly, disabled, frail, and at-risk individuals.
ELI5 AI
The DELIVER Act of 2025 wants to make it cheaper for people to use their cars when delivering meals to older or disabled people by giving them more money for the miles they drive, just like businesses get.
Summary AI
S. 895, known as the “Delivering Elderly Lunches and Increasing Volunteer Engagement and Reimbursements Act of 2025” or the “DELIVER Act of 2025,” aims to amend the Internal Revenue Code of 1986. The bill's primary goal is to increase the standard mileage rate for charitable activities involving the delivery of meals to homebound individuals who are elderly, disabled, frail, or at risk, to align it with the standard business mileage rate set by the IRS. This change encourages more volunteerism by making it more financially reasonable for people to use their personal vehicles for charitable meal deliveries. The new mileage rate will apply to any miles driven starting from the date the Act becomes law.
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AnalysisAI
General Summary of the Bill
The proposed legislation titled the “Delivering Elderly Lunches and Increasing Volunteer Engagement and Reimbursements Act of 2025” or the “DELIVER Act of 2025” seeks to amend the Internal Revenue Code of 1986. Its primary aim is to increase the mileage reimbursement rate for individuals using their vehicles to deliver meals to homebound persons who are elderly, disabled, frail, or at risk. This increase is intended to align the charitable mileage rate with the standard business mileage rate as set by the IRS, effective from the enactment date of the bill.
Summary of Significant Issues
Several issues arise from the proposed amendments. Firstly, the bill does not clarify who is responsible for determining the eligibility of the recipients described as elderly, disabled, frail, or at-risk. This lack of definition could lead to inconsistent application and potential misuse. Secondly, the legislation does not specify whether the increased mileage rate is available to nonprofit organizations, individual volunteers, or both. This ambiguity might confuse potential beneficiaries about their eligibility. Additionally, there is a concern regarding the financial implications of increased reimbursements, especially if the demand for such services rises significantly. Lastly, the use of technical terms like "standard business mileage rate" assumes a general familiarity with IRS standards, which might not be the case for all readers.
Impact on the Public
The proposed bill aims to address a pressing social need by facilitating meal delivery services to some of society's most vulnerable individuals. By increasing reimbursement rates, it potentially encourages more volunteers and organizations to participate in such activities. This could lead to broader coverage and service expansion, ultimately benefiting the elderly, disabled, frail, and at-risk individuals who rely on such programs for their daily nutritional needs.
However, the increased reimbursement could also result in unanticipated budgetary pressures if the number of claims rises sharply. This raises questions about how the government plans to fund these reimbursements, especially in terms of ensuring it fits within existing budget constraints.
Impact on Specific Stakeholders
For volunteers and nonprofits engaged in meal delivery services, the bill offers an immediate financial incentive to cover transportation costs more effectively. This could not only increase engagement from current participants but also attract new ones, expanding the volunteer pool and potentially enhancing the capacity of community service programs.
On the other hand, governmental bodies responsible for compliance and budget oversight might experience challenges. They need to establish clear guidelines on recipient eligibility and manage potential increases in claims without surpassing allocated budgets.
In summary, while the DELIVER Act of 2025 endeavors to support a worthy cause, the lack of clarity on several fronts could pose operational and financial challenges. Clear guidelines and robust planning are essential to prevent potential misuse, ensure proper implementation, and achieve the desired social benefits efficiently.
Issues
The amendment in Section 2 specifies a mileage rate for the delivery of meals to certain groups, but does not specify who determines or verifies the eligibility of these 'homebound individuals' as elderly, disabled, frail, or at risk, which could lead to potential misuse or confusion.
The text in Section 2 lacks clarity on who can claim the increased mileage rate, i.e., whether it applies only to nonprofit organizations or individual volunteers, which could result in misinterpretation of eligibility.
The potential for increased mileage reimbursement in Section 2 might not be budgeted properly, leading to unforeseen expenses if the delivery service usage greatly increases.
The language in Section 2 uses specific terms like 'standard business mileage rate' without defining it within the text, assuming that all readers are familiar with IRS standards, which could be seen as complex or difficult for a layperson to understand.
Section 1's short title does not provide any substantive content or context on how funds will be allocated or if the funds might favor any particular organization or individual, making it difficult to evaluate for potential wasteful spending.
There is no definition or explanation of the acronym 'DELIVER Act of 2025' in Section 1, which might cause confusion about its full meaning and scope without further context.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section specifies the short title of the act, stating it can be referred to as the "Delivering Elderly Lunches and Increasing Volunteer Engagement and Reimbursements Act of 2025" or simply the "DELIVER Act of 2025."
2. Increase in standard mileage rate for delivery of meals to elderly, disabled, frail, and at-risk individuals Read Opens in new tab
Summary AI
The bill increases the standard mileage rate for people who use their vehicles to deliver meals to homebound individuals who are elderly, disabled, frail, or at risk. This change will apply to miles driven from the date the bill is enacted.