The United States has joined every other developed nation in offering national paid family leave, with a new federal program providing up to 12 weeks of paid leave for new parents, family caregivers, and workers with serious health conditions. The program takes effect October 1, 2026.
Workers will receive 80% of their average weekly wages, capped at $1,200 per week. The program is funded through a 0.4% payroll tax split equally between employers and employees. Self-employed workers can opt in to coverage.
The legislation passed after years of bipartisan negotiation, with compromises including the wage cap, a one-year employment requirement, and exemptions for businesses with fewer than 15 employees. Even with exemptions, the program covers approximately 80% of the American workforce.
Business groups have expressed mixed reactions. Large employers generally support the program, as most already offer paid leave and welcome a level playing field. Small business owners worry about staffing challenges during employee absences.
Proponents cite economic benefits including improved worker retention, reduced turnover costs, and better maternal and infant health outcomes. Countries with paid family leave programs consistently show higher female labor force participation rates.
