Wednesday Expanding a Federal Tax Credit to Encourage More Employers to Offer Paid Family Leave, Allowing Businesses to Qualify by Covering

Treasury Secretary Scott Bessent will unveil the policy alongside House Speaker Mike Johnson and Republican Rep. Juan Ciscomani of Arizona, a competitive incumbent ahead of November's midterm elections. The credit, created under President Donald Trump's 2017 tax overhaul, previously required employers to pay workers at least 50% of wages during two weeks of leave; the updated guidance removes that hurdle for insurance premiums.

The White House said the change aims to boost voluntary benefits without a federal 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 called it "another historic win for working parents.

The policy stems from the One Big Beautiful Bill Act, and Republicans plan to highlight it during the midterm campaign. The U.S. does not require paid family leave, and the expansion follows a proposal by Republican Sen. Deb Fischer of Nebraska.