FSA limit has been cut in half from $5000 to $2500. FSA money is something that parents of special needs kids utilize because it can be spent on special therapies. The FSA allows the parent to use pre-tax money for that purpose. Since the limit is now reduced by $2500, any monies spent in excess of that will now come out of post-tax income.
And I miscalculated earlier. In a 25% bracket, this comes to $833 going towards government, which means that I will have to earn $3333 in order to spend that extra $2500 on my kid.