Federal
Federal Programs
Federal Programs
The United States does not have a national paid family and medical leave program: however, both Republican and Democratic leaders have agreed that paid leave benefits are important to the American people. In 2025, the federal government enacted legislation and provided guidance regarding Paid Family and Medical Leave (“PFML”), as described below.
In March 2025, Congress published the following report that reflects the research and opposing proposals on how to provide paid leaves to workers nationwide: Paid Family and Medical Leave in the United States | Congress.gov | Library of Congress
The US Department of Labor has:
- Created this website to educate employers and lawmakers to coordinate any new paid leave benefit programs: Paid Leave | U.S. Department of Labor
- Issued an Opinion letter FMLA2025-01-A that provides employers with guidance when FMLA and PFML mandates overlap, and changes employers are required to make when an employer’s own paid time off plans could also overlap with state mandated paid benefits and FMLA.
Tax Credits: As an alternative to a paid claim-type administrative program, the Federal solution currently active is an IRS PFML Tax Credit, which became permanent in 2025.
- Click here to learn more.
- Enhancements to the PFML IRS Tax Credit will impact employee benefits as of January 1, 2026.
Enhancements to the IRS PRML Tax Credit was one of the provisions in the “One Big Beautiful Bill Act” (OBBBA) signed by President Trump on July 4, 2025. This act permanently extends and improves the existing paid family and medical leave tax credit (that was scheduled to expire after the 2025 tax year), allowing employers to claim the PFML Tax Credit for a portion of PFML insurance premiums.
Points you may want to discuss with your tax advisors and attorneys:
- Under Section 45S of the IRS tax code, this Paid Family and Medical Leave tax credit is already available today. Tax credits are on a sliding scale between 12.5% - 25% based on the percentage of wage replacement benefits. For more information, you can review these FAQs.
- To qualify for the tax credit, employer PFML plans must have specific designs, duration, wage replacement percentages, and qualifying events. In addition, employers must have:
- A written policy in force with at least one qualifying event mirroring FMLA
- Wage replacement benefits of at least 50% for at least 2 weeks (max 12 weeks mirroring FMLA)
- PFML Tax Credits are not available for state mandated PFML/Statutory disability benefits. They are specific to voluntary paid family and medical leaves for the portion of premiums funded by the employer.
Enhancements for 2026 tax years and beyond
- Expands the definition of “qualifying employee” to include one who has worked at least 6 months and earned less than 60% of the highly compensated employee threshold under IRC 414(q), which is $96,000 in 2025.
- Simplifies the calculation to determine the PFML Tax credit using insurance premiums (rather than a percentage of wage replacement benefits).
- Includes a tax credit for employers that have more generous Paid Family and Medical Leave benefits in connection with their PFML/Statutory mandated state programs.
As of February 10, 2026
Federal Programs in Force
Provides paid family leave benefits for:
- Up to 12 weeks for child bonding and
- Up to 2 weeks for child bereavement.
FEPLA provides paid parental leave in connection with the birth, adoption, or foster care placement of a child for employees covered by the Family and Medical Leave Act (FMLA) provisions applicable to certain federal civilian employees. Benefits started October 1, 2020, and applies to leave taken in connection with a birth or placement of a new child. For more information regarding the Federal employees Paid Parental Leave for Federal Employees see Paid Parental Leave (opm.gov).
Parental Bereavement leave, effective January 1, 2022. Employees become eligible for two weeks of paid bereavement leave if a child—including adopted, foster and stepchildren, as well as an adult child with “a mental or physical disability”—dies. The death essentially starts a one-year entitlement, during which employees may elect to take a period of up to two weeks of paid leave. For more information regarding the click on this (Parental Bereavement Leave (chcoc.gov/)) link.
The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year and allows for the extension of their group health benefits to be maintained during the leave.
FMLA applies to all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees. These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for any of the following reasons:
- For the birth and care of the newborn child of an employee;
- For placement with the employee of a child for adoption or foster care;
- To care for an immediate family member (spouse, child, or parent) with a serious health condition; or
- To take medical leave when the employee is unable to work because of a serious health condition.
Employees are eligible for leave if they have worked for their employer for at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Whether an employee has worked the minimum 1,250 hours of service is determined according to Fair Labor Standards Act (FLSA) principles for determining compensable hours or work.