HR5390-119

What This Bill Does

The FAMILY Act creates a federal paid family and medical leave insurance structure administered by the Social Security Administration. It defines qualified caregiving to include FMLA-style bonding and family-care leave, caring for a qualified family member with a serious health condition, the worker's own serious health condition, and needs arising from dating violence, domestic violence, family violence, sexual assault, sex trafficking, stalking, gender-based violence, harassment, bodily-injury threats, firearm threats, or force threats. Family definitions include spouses, domestic partners, parents, children of any age, siblings, grandparents, grandchildren, in-laws, and people related by blood or affinity equivalent to family. SSA must create an Office of Paid Family and Medical Leave headed by a Deputy Commissioner to issue regulations, decide eligibility, calculate and pay benefits, maintain records, prevent fraud, provide notices, publish annual utilization reports, and conduct culturally and linguistically competent outreach. Benefit eligibility requires an application, recent qualified caregiving, recent wages or self-employment income, and at least $2,000 in covered income for 2026 indexed afterward. Monthly benefits replace earnings at 85 percent, 69 percent, and 50 percent across indexed earnings bands, with 2026 thresholds of $1,257, $3,500, and $6,200 and initial maximum and minimum monthly benefits of $4,000 and $580. Benefit periods generally cap caregiving hours at 12 times the worker's regular workweek. The bill creates monthly claim reports, review deadlines, coordination with disability and other benefits, anti-retaliation and wage-withholding remedies, private and Commissioner enforcement, and a three-year limitations period. Beginning in calendar year 2027, legacy states with paid-leave laws can receive grants covering the lesser of estimated federal-benefit equivalents or actual state paid-leave costs plus administration capped at 7 percent, if they meet data-sharing requirements. GAO must report after 2026 and every five years on applications, determinations, review timing, monthly claims, delays, demographics, sectors, qualifying reasons, and data needs.

Who Benefits and How

Workers needing paid caregiving leave benefit from federal monthly benefits for birth, adoption, family care, personal serious health conditions, and violence-related safety needs. Low-wage workers benefit from an 85 percent replacement rate on the lowest earnings band and indexed minimum monthly benefits. Legacy state paid-leave programs benefit from federal grants beginning in 2027 when they share required data. Survivors of domestic violence and sexual assault benefit because qualified caregiving includes legal, medical, relocation, school, care, and victim-services needs after qualifying violence.

Who Bears the Burden and How

Social Security Administration staff must build an Office of Paid Family and Medical Leave, issue regulations, decide claims, pay benefits, prevent fraud, and report utilization. Employers must avoid retaliation, interference, and withholding of compensation tied to workers using family and medical leave insurance benefits. Legacy state paid-leave administrators must satisfy data-sharing requirements to receive federal grants. Federal taxpayers finance benefit administration and grants to states with qualifying paid-leave systems.

Key Provisions

• Establishes an SSA Office of Paid Family and Medical Leave led by a Deputy Commissioner.
• Creates wage-replacement benefits using 85, 69, and 50 percent rates across indexed earnings bands.
• Defines qualified caregiving to cover FMLA-style leave, serious health conditions, broad family relationships, and qualifying violence-related needs.
• Creates employer anti-retaliation, wage-withholding, private-action, and Commissioner enforcement remedies.
• Provides legacy-state grants beginning in 2027 and requires recurring GAO reports on claims, determinations, delays, demographics, sectors, and data gaps.