100th member of Congress signs on to bipartisan bill incentivizing active lifestyles
SILVER SPRING, MD (Dec. 12, 2019) – On Dec. 5, Congressman Cedric Richmond (D-LA) became the 100th cosponsor of the Personal Health Investment Today (PHIT) Act. The bill, which allows Americans to use HSAs and FSAs to pay for activity-related expenses, has garnered strong bipartisan support in the House (44D-43R) and Senate (5D-8R) since it was introduced in March 2019. Congressmen Ron Kind (D-WI) and Mike Kelly (R-PA) serve as the lead sponsors of the PHIT Act in the House and Senators John Thune (R-SD) and Chris Murphy (D-CT) are leading the effort in the Senate.
Rep. Cedric Richmond is an advocate for healthy, active lifestyles, always leading by example. As a father and star pitcher of the Congressional Baseball team, the MVP is intent on making activity more affordable for individuals and families across the nation.
“It is very fitting to have Rep. Cedric Richmond as the 100th congressional cosponsor of the PHIT act,” said Bill Sells, Senior Vice President of Government Relations and Public Affairs at the SFIA. “His leadership both on the field and in congress speak to the positive impact sports have had on his life. His support of the PHIT act will create increased opportunities for future generations to enjoy the benefits of active lifestyles.”
Promoting active lifestyles is increasingly important as the Centers for Disease Control and Prevention (CDC) released a new study last week, “Prevalence of Prediabetes Among Adolescents and Young Adults in the United States, 2005-2016,” warning Americans that prediabetes is on the rise. The report stated that 18 percent of teenagers and 24 percent of young adults had prediabetes, putting them at risk for developing Type II diabetes and other chronic conditions.
“The prevalence of prediabetes in adolescents and young adults reinforces the critical need for effective public health strategies that promote healthy eating habits, physical activity, and stress management,” said CDC Director, Robert Redfield. With over a quarter of the population reportedly inactive, it is increasingly important that the government passes legislation that assists our nation in taking a big step forward in improving physical health and overall healthcare spending.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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President Trump announces verbal agreement to suspend additional tariffs
SILVER SPRING, MD (October 14, 2019) – On Friday, October 11, President Trump announced that he had reached a trade pact with China. While there is no official agreement, the president has retreated from his plan to increase List 3 tariffs from 25 to 30 percent on October 15. List 3 tariffs will remain at 25 percent until further notice.
In his announcement, President Trump reported that China has agreed to purchase $40 billion to $50 billion more in agricultural products from the U.S. The Chinese asked the U.S. to pull back on List 4B tariffs of 15 percent, scheduled to go into effect on December 15, but the U.S. has not made any comment on that.
“SFIA looks forward to seeing the final agreement in writing to glean a greater understanding of the current trade situation,” stated Tom Cove, SFIA President and CEO. “In the interim, we are hopeful that both sides will continue to communicate and work in good faith toward a resolution to this tariff war.”
SFIA filed List 3 exclusion petitions on September 30 seeking relief on specific products and will be doing the same for List 4 products once the process is announced.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
Tariffs will be imposed on an additional $300 billion in products
SILVER SPRING, MD (Aug. 1, 2019) – After a brief tariff truce with China, President Trump announced a new 10 percent tariff on $300 billion of Chinese imports, taking effect on Sept. 1, 2019. These tariffs will target “List 4” products – products that have not previously been subject to tariff increases. However, the U.S. Trade Representative has not yet released the final list by product category. There is a possibility that certain products will be removed from this list, following the public comments and hearing process in June, in which SFIA advocated for its members’ petitions.
“We are disappointed with the President’s action to escalate this trade war,” stated SFIA President and CEO, Tom Cove. “The announcement of the tariff truce between President Trump and President Xi gave us hope that the two nations would continue negotiations in a positive way that would not harm American consumers and corporations. While we see protecting intellectual property as critically important to global commerce, tariffs are not the solution to the problem, and the American economy will suffer.”
SFIA will continue to discourage the President from increasing import duties on Chinese products, as China serves a crucial manufacturing role for many American companies. As more information is provided regarding the final list to face the 10 percent tariff, SFIA will inform all interested and affected parties. Interested parties are encouraged to contact Bill Sells (bsells@sfia.org) or Chandler Hoffman (choffman@sfia.org) with any questions.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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The PHIT Act continues to build bipartisan support for a more active America
SILVER SPRING, MD (July 9, 2019) – Congressmen Ron Kind (D-WI) and Mike Kelly (R-PA), lead sponsors of the Personal Health Investment Today (PHIT) Act, sent a letter to all members of the House yesterday seeking additional support of their bill to make activity more affordable. The U.S. is facing an inactivity crisis, with more than a quarter of the population abstaining from any physical activity, and the PHIT Act (H.R. 1679) would allow individuals to pay for activity-related expenses using pre-tax dollars.
This bipartisan bill has garnered the support of 33 republicans and 36 democrats in the House, showing that the widespread need for a healthier nation extends across party lines. The “Dear Colleague” letter, sent by Kind and Kelly, outlines expenditures that would qualify as a form of disease prevention, allowing individuals and families to save money on gym memberships, youth camps, sports leagues, equipment and fitness classes, among other things.
“Earlier this year the CDC reported 90 percent of health expenditures are used to treat chronic disease and mental illness, the incidence of both conditions is lower in the active population,” stated Congressman Ron Kind. “Engaging in regular physical activity can improve people’s health and quality of life to reduce the incidence of preventable and costly chronic diseases. The PHIT Act lowers the financial barrier to activity to encourage healthier lifestyles, which in turn, will reduce overall health care spending.”
The income disparity among active Americans continues to grow. Lower-income households are becoming more inactive each year, and the opportunity to participate in activity and lead healthy lifestyles is becoming a privilege only available to the wealthy. More than 66 percent of the population in households making less than $75,000 are inactive. In contrast, only 16 percent of individuals in households with an income of more than $100,000 are inactive. Since the PHIT Act benefits would operate through individual’s Health Savings Accounts (HSAs), and the average household income of HSA holders is $57,000, PHIT would give lower-income consumers the ability to reduce their activity expenses via the use of pre-tax dollars. Physical activity leads to prevention of chronic disease, and that is worth the investment.
To read the full letter, click here.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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President Trump and Chinese President Xi agree to temporarily hold off on new tariffs
SILVER SPRING, MD (July 1, 2019) – President Trump announced this weekend that no additional tariffs will be imposed on imports from China at this time. This is positive news for the sports and fitness industry. American and Chinese officials will return to negotiations and suspend any immediate action on new tariffs, as a result of President Trump and Chinese President Xi’s meeting at the G-20 Summit in Japan.
“We are relieved with the President’s decision,” stated SFIA President and CEO, Tom Cove. “While the decision to avoid new tariffs is temporary, negotiations in this direction are a good step. We see this as a positive sign for the industry, but not conclusive. The industry is struggling to overcome China tariffs that are already in place, so we hope this tariff truce leads to tariff reductions, as well. SFIA supports President Trump’s efforts to bring China into compliance with international intellectual property laws, but we do not view excessive tariffs to be a successful solution.”
The 25 percent tariff on all products included on List 3, announced earlier this year, still stands, and the exclusion process for List 3 began on Sunday, June 30, 2019. SFIA will organize industry petitions requesting exclusions from the proposed tariffs to assist the industry in navigating these difficult challenges. If you’re interested in learning more about the petition process, please contact Chandler Hoffman, at choffman@sfia.org.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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SFIA to assist companies in applying for exemptions
SILVER SPRING, MD (May 14, 2019) – President Trump announced plan to impose up to 25 percent tariffs on an additional $300 billion of Chinese-made goods (“List 4”). This action will impact nearly all athletic footwear, apparel, and sports and fitness equipment imported into the U.S. from China.
“This is something we have feared,” said SFIA President & CEO, Tom Cove. “While there have been threats around these tariffs for many years, this action is the farthest-reaching and most damaging trade policy our industry and our customers have ever faced. We still hope the Chinese and American governments can come to an agreement before the tariffs go into effect, as these new tariffs will be potentially-destructive to many industry companies who cannot move manufacturing processes out of China in such a short period of time.”
SFIA will work with companies to navigate the process to exempt products from these new tariffs. Comments will be accepted up until June 10 and public hearings on the tariffs will be held on June 17, with tariffs potentially going into effect as early as June 24. SFIA will be sharing additional information on the exemption process as it becomes available. For information on SFIA’s exemption effort, please contact Chandler Hoffman, at choffman@sfia.org.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visitwww.sfia.org.
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President announces Friday deadline to impose tariffs
SILVER SPRING, MD (May 8, 2019) – In response to the slow pace of trade negotiations with China, President Trump announced that tariffs on $200 billion of Chinese-made products will increase to 25 percent at 12:01 a.m. on Friday, May 10. This action follows the Administration’s previous tariff hikes in 2018, which resulted in a 10 percent tariff on select Chinese goods.
The increase will impact all previously targeted products including hats, gloves, bags and football helmet components, among other things. At this time, no tariffs on new categories have been announced, though President Trump has publicly threatened to impose tariffs on all Chinese imports. Should the President expand the tariffs to the remaining $325 billion in Chinese imports, virtually all athletic footwear, apparel and equipment markets are expected to be impacted.
“We want to be clear: Negotiating with China to ensure a fair trading regime is very important, especially in regard to China’s policies related to intellectual property protection and forced technology transfer,” said SFIA President and CEO, Tom Cove. “However, increasing tariffs like this is the wrong approach. These taxes will fundamentally harm the American sports and fitness products industry; there’s no way around it. But as difficult as it will be for our companies, it will be doubly worse for American consumers who will face serious price increases and reduced selection.”
SFIA has communicated with the Trump Administration, along with other member companies, for months and has been clear that if these tariffs are imposed, companies will be forced to raise prices, reduce production, divert resources from planned research and development, and potentially lay off employees. China currently represents one of the most important production source countries for the industry, with companies from every sector producing goods to be sold in the American market. Companies have been attempting to develop and implement contingency plans, but only so much can be done to mitigate such massive impact in such a short time.
“Our industry has aggressively taken steps to diversify its sourcing outside of China, but it is simply not possible for the majority of companies to quickly re-locate the bulk of its production. As a result, there is no way to avoid the onerous impact of these tariffs if they remain in place,” said Cove. “We fear a particular threat to small and medium-size companies who have less capacity and market power to make dramatic shifts in real time.”
SFIA has urged the Administration to explore alternative negotiating strategies and tools to achieve its trade objectives with China.
SFIA will organize industry petitions requesting exclusions from the proposed tariffs to assist the industry in navigating these difficult challenges. If you’re interested in learning more about the petition process, please contact Chandler Hoffman, at choffman@sfia.org.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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SILVER SPRING, MD (March 28, 2019) – Momentum behind the Personal Health Investment Today (PHIT) Act continues, as 24 members of the House and Senate have signed on as cosponsors in the two weeks since it was introduced. PHIT remains very bipartisan, with 13 Republicans and 11 Democrats joining the lead sponsors, Senators John Thune (R-SD) and Chris Murphy (D-CT) and Congressmen Ron Kind (D-WI) and Mike Kelly (R-PA), in supporting this pro-activity, pro-health bill. The PHIT Act passed the House in July 2018, but failed to receive a vote in the Senate before they adjourned for the year.
SFIA launched the cosponsor drive the day after PHIT was introduced in House, during National Health Through Fitness Day. On March 13, the Sports & Fitness Industry Association (SFIA) hosted celebrity athletes, sports and fitness executives, medical professionals and active lifestyle advocates on Capitol Hill to address the need to help families with youth activity expenses. Attendees spent the day in meetings with members of Congress, promoting the PHIT Act and providing information on the far-reaching benefits of an active lifestyle, and how it serves as a disease prevention health measure.
“Earlier this year, the CDC reported that 90 percent of healthcare spending goes toward treating chronic disease and mental health issues,” stated SFIA’s Senior Vice President of Government & Public Affairs, Bill Sells. “The bottom line is: PHIT will increase activity! It’s time to pass this bill to reduce healthcare spending. We have great leadership in Congress and look forward to passing PHIT in 2019.”
As healthcare costs continue to rise and chronic disease continues to affect more Americans, SFIA is leading the effort to be proactive on the inactivity issue and promote a solution to reverse the sedentary lifestyle trend. Allowing Americans to pay for activity-related expenses through Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) will create more opportunities for children to participate in youth leagues and activities, building the foundation for a future of healthy, active individuals.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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Active lifestyle enthusiasts promote PHIT bill to address inactivity crisis in America
SILVER SPRING, MD (March 13, 2019) – Today, just days after the reintroduction of the Personal Health Investment Today (PHIT) Act in the House of Representatives and the Senate, the Sports & Fitness Industry Association (SFIA) celebrated the 20th annual National Health Through Fitness Day. SFIA hosted a star-studded lineup of athletes to push the PHIT Act, legislation that will ease the burden of active lifestyle costs. Collectively, the athletes in attendance boasted one World Series, one Stanley Cup, 11 Olympic medals, one Heisman Trophy, seven Pro Bowls, one NBA Most Improved Player Award and 10 MLB All-Star Game appearances. In addition to the athletes, SFIA was joined by the American College of Sports Medicine, sports executives, youth league organizations, health and fitness industry representatives, and other physical activity proponents eager to speak with Congress about the importance of PHIT.
Throughout the day, more than 100 meetings were held, more than half directly with Congressmen/women and Senators, to discuss the severe state of inactivity in our country. Every year, individuals in households with an annual income under $75,000 become less active, and inversely, activity rates among higher-income households continue to grow. In turn, economic status is strongly influencing youth participation in sports.
“Now, in schools, it’s all pay-to-play,” said former NFL Pro Bowl player, Santana Moss. “If my kid is going to play any varsity sport – I have to sign them up and pay first, then they have to make the team. Then, once they make the team, I have to buy the equipment, the shoes, the uniform, and whatever else there is. If households can’t afford to buy the equipment, then their kids can’t play. That’s one of the biggest issues we’re seeing, and that’s why we’re trying to pass this bill.”
“The polarization of income dictating activity levels is evolving,” stated former NHL player, Kevin Westgarth. “The ability to participate in sports, or any kind of physical activity, in schools or wherever – places where, traditionally, everyone comes together and where everyone is supposed to be on equal footing, no longer exist. Losing those opportunities has been devastating to the landscape of youth sports, and it is something that the PHIT Act will help address.”
The United States government is in a critical position to stop this trend and prevent income from having such a strong impact on Americans’ activity levels. The PHIT Act proposes a change in the IRS definition of “medical expense,” to include physical activity-related expenses as a form of prevention. It is one of the most bipartisan pieces of legislation going through Congress at this time, due to the fact that a more active U.S. population will lead to healthier lifestyles and lower healthcare spending, which is currently projected to reach 20 percent of the U.S. GDP by 2025.
“National Health Through Fitness Day is a special time because it gives us a chance to actually connect directly with Congress and talk about things that are important to us and the industries we support,” said SFIA Chairman, Chris Clawson. “Most importantly, the PHIT bill was introduced in the House yesterday, which means that we now have both House and Senate support. We are really excited about moving this forward. We think it’s a game-changer; not just for the industry, but more importantly, for the people of America, as it will provide them with the opportunity to use FSAs and HSAs to focus on prevention, as opposed to just treatment.”
SFIA applauds congressional efforts to encourage activity via the PHIT Act to reverse the inactivity trend, and presented Congressman Rodney Davis (R-IL) and Congressman Cedric Richmond (D-LA) with SFIA’s Champion of Health & Fitness Award for their leadership and concerted efforts to improve health through activity in America.
“Having athletes help us deliver our pro-health message is very exciting, as they are living proof of the everlasting benefits of an active lifestyle,” said Bill Sells, Senior Vice President of Government & Public Affairs at SFIA. “American society has changed over the years and casual daily activity is no longer free. Unfortunately, middle and lower-income families are suffering the most. The PHIT Act will lower the cost of active, healthy lifestyles by allowing consumers to use medical pre-tax dollars to prevent chronic disease. This is something our country needs.”
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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House and Senate introduce legislation to make activity more affordable, encouraging more Americans to participate
WASHINGTON, DC (March 12, 2019) – The Sports & Fitness Industry Association (SFIA) applauds congressional efforts to reintroduce the Personal Health Investment Today (PHIT) Act in both the House of Representatives and the Senate. On Wednesday, March 6, PHIT Act lead sponsors, Senator John Thune (R-SD) and Senator Chris Murphy (D-CT), reintroduced the bill in the Senate (S.680); and on Tuesday, March 12, PHIT lead sponsors, Congressman Ron Kind (D-WI) and Congressman Mike Kelly (R-PA) reintroduced the bill in the House (H.R. 1679).
The PHIT Act would allow Americans to use pre-tax medical accounts to cover all physical activity-related expenses, such as gym memberships, youth league registration fees, race entry fees, personal trainers and equipment expenses exclusively intended for the sole purpose of being physically active. With healthcare costs increasing, chronic disease affecting a majority of the country and inactivity among lower-income households growing, it is vital to decrease the financial barrier that stands between Americans and the ability to lead an active lifestyle.
“Investing in preventive health is one way Congress can help incentivize America to be a healthier nation,” said Thune. “For some Americans, certain gym or athletic league membership costs can be prohibitive, keeping them from pursuing healthy habits, like exercising or participating in other physical activities. By giving Americans greater flexibility with their HSAs and FSAs, we can help people make healthy choices, get active, and hopefully avoid the onset of costly chronic conditions.”
“I’m proud to reintroduce the PHIT Act with Senator Thune. Our bill is a great first step to encouraging Americans to lead healthier, more active lives,” said Murphy. “The PHIT Act would allow folks to use their own flexible spending accounts to cover physical activity expenses like gym memberships, little league and youth sports, and other fitness related equipment. This will help drive down healthcare costs and reverse the trend of obesity, diabetes and other chronic preventable diseases.”
“Physical fitness for America’s children is one of the best ways to build a healthy lifestyle and prevent future health expenses,” stated Kelly. “It makes sense to let Americans use pre-tax medical accounts for this purpose. Not only will this change make it more affordable for parents to put their kinds into youth sports programs, it’s also a crucial investment in our future collective health. We should encourage healthy choices, and the PHIT Act will do just that.”
“Senators Thune and Murphy and Representatives Kind and Kelly deserve a lot of credit,” stated SFIA President and CEO, Tom Cove. “They are true champions in the cause to promote activity and health for all Americans, and their leadership will be critical to getting the PHIT Act signed into law. We’re grateful to have their commitment, and the sports and fitness industry intends to advocate as hard as we can for passage in 2019.”
On July 24, 2018, the PHIT Act was part of a package that passed the House of Representatives by a two-to-one margin with strong bipartisan support. Unfortunately, PHIT did not receive a vote in the Senate before the year-end government shutdown. In the new Congress, SFIA is hopeful that the 287 current members who have supported PHIT previously will carry the positive momentum from 2018 into 2019, and pass the PHIT Act to help Americans lead healthier lives.
On March 13, during SFIA’s National Health Through Fitness Day, physical activity advocates will meet with Congress to promote the PHIT Act. SFIA will be joined by our partner, the American College of Sports Medicine (ACSM), celebrity athletes, sports and fitness industry executives, and physical activity enthusiasts to discuss the PHIT Act and the far-reaching benefits of a physically active lifestyle with members of Congress.
To learn more about the PHIT Act and SFIA’s National Health Through Fitness Day, click here.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.
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