More Americans could get paid family leave under Trump’s latest move

More Americans could get paid family leave under Trump’s latest move The Treasury Department will announce new guidance on Wednesday expanding incentives for employers to offer paid family leave - Bookmark - CommentsGo to comments The Trump administration is expanding a federal tax credit designed to encourage more employers to offer paid family leave, making it easier for businesses to qualify for the incentive by covering the cost of insurance policies. The Treasury Department is expected to announce new guidance Wednesday allowing employers to claim the paid family leave tax credit even if they provide the benefit through insurance, rather than paying employees' wages directly while they are on leave. Treasury Secretary Scott Bessent is set to unveil the policy alongside House Speaker Mike Johnson and Republican Rep. Juan Ciscomani of Arizona, one of the GOP's most competitive House incumbents ahead of November's midterm elections. The tax credit was first created under President Donald Trump's 2017 tax overhaul. Under the original rules, employers generally qualified only if they paid workers at least 50% of their wages during a minimum of two weeks of family or medical leave. The updated guidance is expected to remove that hurdle by allowing employers to qualify if they instead pay premiums for insurance that provides the benefit, according to people familiar with the plan. The White House said the change is intended to encourage more businesses to offer paid family leave without creating a federal paid leave mandate. "Hardworking Americans should not have to choose between caring for a loved one and earning a paycheck," Bessent said. White House spokesman Kush Desai described the move as "another historic win for working parents." The policy stems from Trump's recently enacted One Big Beautiful Bill Act, which expanded the paid leave tax credit as part of the broader tax and immigration package. Republicans are expected to highlight the measure during the midterm campaign as they seek to improve their standing on economic issues. Unlike many other developed nations, the United States does not require employers to provide paid family or medical leave. Instead, the Trump administration's approach relies on tax incentives to encourage businesses to voluntarily offer the benefit rather than creating a federally funded program. The expansion reflects a long-standing proposal championed by Republican Sen. Deb Fischer of Nebraska, who has argued that tax credits are a more flexible way to increase access to paid family leave while limiting costs to the federal government. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments