Current status is Referred to the Committee on Education and Workforce, and in addition to the Committees on Ways and Means, Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

119th CONGRESS

1st Session

H. R. 3089

1. Short title
101. Establishment of the State Paid Family Leave Public-Private Partnership Grant Program
102. Oversight
103. Definitions
104. Rescission and appropriation of funds
201. Definitions
202. Interstate Paid Leave Action Network
203. National intermediary to support the Interstate Paid Leave Action Network
204. Grants to eligible States
205. Authorization of appropriations

1. Short title

This Act may be cited as the "More Paid Leave for More Americans Act".

101. Establishment of the State Paid Family Leave Public-Private Partnership Grant Program

(a) In general - The Secretary of Labor shall establish and administer a competitive grant program to provide grants to States that have enacted a law establishing a paid family leave program as described in subsection (d).

(b) Eligibility - To be eligible to receive a grant under this section, a State shall—

(1) - have enacted a State law establishing a paid family leave program as described in subsection (d); and

(2) - participate in the Interstate Paid Leave Action Network established under section 202(a).

(1) In general - To be eligible to receive a grant under this section, a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including how the funds will be used, the working population of the State, the percentage of the State’s working population that is able to access a paid family leave benefit, and the source of such benefit.

(2) Priority -

(A) In general - The Secretary shall prioritize States—

(i) - that indicate in the application submitted under paragraph (1) that the covered partnership will use software that is a commercially available off-the-shelf item (as defined in part 2.101 of the Federal Acquisition Regulation) to administer benefits;

(ii) - that have, relative to other States that have submitted an application in a given year, a lower percentage of the working population of the State that have access to a paid family leave benefit at the time of the submission of the application;

(iii) - that demonstrate in the application that the State has a plan to implement a financing mechanism that does not have long-term reliance on Federal funding; and

(iv) - that demonstrate in the application how the State paid family leave program serves low-income populations.

(B) Consideration prohibition - The Secretary may not consider whether a State provides benefits in excess of those required under subsection (d) when deciding which States shall receive a grant under this title.

(d) Paid family leave program requirements -

(1) Program requirements - A paid family leave program described in this subsection shall, at a minimum—

(A) - provide, through the covered partnership, a paid family leave benefit to eligible employees because of—

(i) - the birth of a son or daughter of an eligible employee and in order to care for such son or daughter; and

(ii) - the placement of a son or daughter with the eligible employee for adoption;

(B) - provide 6 weeks of paid family leave benefits;

(C) - annually establish a weekly maximum benefit amount that is equal to 150 percent of the State’s average weekly wage (based on the most recent calendar year for which data is available from the Quarterly Census of Employment and Wages program of the BLS);

(D) - only permit an eligible employee to be entitled to a leave benefit under clauses (i) and (ii) of subparagraph (A) for a birth or placement of a son or daughter during the 12-month period beginning on the date of such birth or placement;

(E) - require the establishment and use of a covered partnership; and

(F) - establish premium rates or a financing method to fund the paid family leave program for employees, employers, or both to pay.

(2) Paid family leave benefit - For the purposes of this title, a paid family leave benefit provided to an eligible employee shall, at a minimum, include weekly compensation in an amount (not to exceed the amount described in paragraph (1)(C)) equal to the product of the average weekly earnings of the eligible employee and—

(A) - in the case of an eligible employee whose earnings for the 4 most recently completed calendar quarters that immediately precede the paid family leave benefit request are less than or equal to the poverty line (as defined in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902)) applicable to a 4-person household, 67 percent;

(B) - in the case of an eligible employee whose earnings for such calendar quarters are more than such poverty line, but less than the amount that is double such poverty line, a percentage equal to—

(i) - 67 percent, minus

(ii) - the product of—

(I) - 17 percent; and

(II) - the percentage by which the employee’s earnings exceed such poverty line; or

(3) Recalculation of benefit amount - The weekly compensation calculated under paragraph (2) for an eligible employee shall be recalculated each time such employee applies for a paid family leave benefit.

(4) Employees with multiple employers - In the case that an employee is employed by multiple employers, such an employee is entitled to receive a benefit from each employer, but the employee may not receive a total combined weekly benefit in excess of the maximum benefit amount established by a State pursuant to paragraph (1)(C).

(5) Employer self-administration flexibility - In the case that a State’s paid family leave program includes a requirement for employer participation, States shall be deemed to be in compliance with this section only if they allow employers to self-administer paid family leave benefits to eligible employees, provided such benefits meet or exceed the paid family leave program established by the State that meets the requirements of this subsection.

(6) Rule of construction - Nothing in this subsection shall be construed to limit the ability of a State to provide additional paid family leave benefits (including benefits for reasons described in section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1))) in excess of the benefits required to be provided under this subsection.

(e) Use of Funds - Grants awarded under this section may be used by States for the following purposes:

(1) - Start up costs for the implementation of the paid family leave program.

(2) - To pay out benefits to eligible employees, but only for the reasons described in subsection (d)(1)(A).

(3) - To fund the covered partnership.

(4) - Paid family leave program design.

(5) - Purchasing and maintaining any necessary software.

(6) - Establishing a covered partnership.

(7) - Obtaining technical assistance for the State or the covered partnership to carry out a paid family leave program.

(8) - Outreach to employers, payroll providers, relevant professional or trade associations, and the general public to increase awareness of the State’s paid family leave program and to convey relevant information such as program eligibility, funding requirements, benefit information, the application process, and any other information the State deems relevant.

(9) - Other activities to disseminate information about, and otherwise support, the accessibility of the State’s paid family leave program, including the operation and maintenance of a program website, running a call center, and sending marketing materials on the State’s covered partnership to the groups described in paragraph (8).

(10) - Research to inform the establishment and operation of the State’s paid family leave program, including program evaluations, and the dissemination of such research to the public.

(11) - To evaluate existing programs and models.

(12) - To reduce administrative burdens on employers in the State.

(f) Grant amounts -

(1) In general - In determining the amount of a grant to be provided to a State, the Secretary shall consider—

(A) - the size of the working population of the State relative to the size of the working population of the other States that are receiving a grant;

(B) - the birth rate of the State relative to the other such States;

(D) - the demonstrated need of a State in the grant application.

(2) Limits - A grant provided under this section may not be less than $1,500,000 and not more than $7,000,000.

102. Oversight

(a) Report - Not later than 1 year after a State receives a grant under this section, and on an annual basis thereafter, the State shall submit to the Secretary, and make publicly available, a report on—

(1) - how the State has used the grant funds; and

(2) - the number of individuals in the State that have used paid family leave benefits as a result of the grant program described in section 101.

(b) Annual report - The Secretary shall, on an annual basis beginning on the date that is 1 year after the date the Secretary receives the first report under subsection (a), submit a report to the appropriate committees on the progress of States establishing paid family leave programs, the modification of existing paid family leave programs, and any changes in the levels of access workers have to paid family leave benefits in each State that receives a grant under section 101.

(c) Audit required - Not later than 1 year after a State receives a grant under section 101, and on an annual basis thereafter, the Inspector General of the Department of Labor shall conduct audits on States that received such a grant to determine whether such States—

(1) - are using the grant funds in compliance with the requirements described in section 101(e); and

(2) - engaging in any waste, fraud, or abuse.

(d) Appropriate committees defined - In this section, the term appropriate committees means—

(1) - the Committee on Education and Workforce, the Ways and Means Committee, and the Committee on Appropriations of the House of Representatives; and

(2) - the Committee on Health, Education, Labor, and Pensions, the Committee on Finance, and the Committee on Appropriations of the Senate.

103. Definitions

In this title:

(1) Average weekly earnings - The term weekly earnings, with respect to an individual, means the quotient obtained by dividing—

(A) - the earnings of the individual, by

(B) - 52.

(2) Covered partnership - The term covered partnership—

(A) - means a partnership between a State and at least one private entity (such as an insurance company or other private entity handling specific functions of the paid leave program, such as the benefit application process), that provides a paid family leave benefit to eligible employees pursuant to the paid family leave program established by the State that meets the requirements of section 101(d); and

(B) - includes a State that allows employers to self-administer paid family leave benefits, as described in section 101(d)(5).

(3) Earnings - The term earnings, with respect to an individual, means all compensation for employment that is considered under the applicable State unemployment compensation law for the purpose of calculating the amount of unemployment compensation for the individual.

(4) Eligible employee -

(A) In general - The term eligible employee means an employee who has been employed—

(i) - for at least 12 months by the employer with respect to whom leave is requested for the birth or placement of a son or daughter; and

(ii) - for at least 1,250 hours of service with such employer during the previous 12-month period.

(B) Determination - For purposes of determining whether an employee meets the hours of service requirement specified in subparagraph (A)(ii), the legal standards established under section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 207) shall apply.

(5) Employer - The term employer has the meaning given the term in section 101(4)(A)(i) and (ii) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)(A)(i)–(ii)).

(6) FLSA terms - The terms employ and employee have the meanings given the terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).

(7) State - The term State includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.

(8) Son or daughter - The term son or daughter has the meaning given the term in section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611).

104. Rescission and appropriation of funds

(a) Tariff Act enforcement actions - Section 11334 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (16 U.S.C. 1885a) is amended by striking "$20,000,000" and inserting "$10,000,000".

(b) Department of defense golf courses; limitation on use of appropriated funds - Section 2491a of title 10, United States Code, is amended—

(1) - by striking "(a) Limitation.—Except as provided in subsection (b), funds" and inserting "Funds"; and

(2) - by striking subsection (b).

(1) Release - The head of each executive agency that, as of the day before the date of enactment of this Act, has entered into a contract or purchase order under Procurement Instrument Identifier GS03F047CA shall take such steps as may be necessary to terminate any such order or contract and release the unexpended balances of any funds obligated to carry out any such order or contract.

(2) Rescission - Any balance released from obligation pursuant to the termination of a contract or order pursuant to paragraph (1) shall be permanently rescinded as of the date of the termination of the applicable contract or order.

(3) Executive agency defined - In this subsection, the term "executive agency" has the meaning given the term in section 133 of title 41, United States Code.

(d) Authorization of appropriations - There are authorized to be appropriated to carry out this title the following amounts:

(1) - $39,787,500 for fiscal year 2026.

(2) - $79,575,000 for fiscal year 2027.

(3) - $145,887,500 for fiscal year 2028.

201. Definitions

In this title:

(1) BLS - The term BLS means the Bureau of Labor Statistics.

(2) Employer-provided paid family and medical leave plan - The terms employer-provided paid family and medical leave plan and employer plan mean a plan that—

(A) - is provided by an employer to the employees of such employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan);

(B) - is an option for an employer within the structure of a State paid family and medical leave program in such State; and

(C) - meets or exceeds the requirements of the State paid family and medical leave program of the State in which such employee is employed.

(3) I–PLAN - The term I–PLAN means the Interstate Paid Leave Action Network established in section 202(a).

(4) I–PLAN agreement - The term I–PLAN Agreement means the interstate agreement produced pursuant to section 202(b).

(5) National intermediary - The term national intermediary means a national nongovernmental workforce organization that has extensive experience partnering with the Department of Labor to operate interstate technological systems and the electronic transmission of information and data for State workforce agencies and employers.

(6) Paid leave - The term paid leave means an increment of compensated leave that is provided, in the case of a State program, by such State or, in the case of an employer plan, by such employer for use during a period in which such individual is not working due to a qualifying reason.

(7) Qualifying reason - The term qualifying reason means, in relation to an individual, a reason described in subparagraphs (A) through (D) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)) (applied for purposes of this paragraph as if the individual involved were the employee referred to in such section).

(8) Secretary - The term Secretary means the Secretary of Labor.

(9) State focal - The term State focal means, with respect to a State, an individual—

(A) - designated by the State agency in charge of such State’s paid family and medical leave program to—

(i) - participate in the I–PLAN;

(ii) - lead such State’s efforts to adopt and implement the I–PLAN Agreement; and

(iii) - communicate with key paid leave stakeholders across the State; and

(B) - who—

(i) - is employed by such State’s paid family and medical leave program; and

(ii) - has knowledge, experience, and authority in paid leave matters.

(10) State paid family and medical leave program - The terms State paid family and medical leave program and State program mean a program under State law that provides, during any 24-month period, a total of not less than 6 weeks of paid leave to individuals—

(A) - for each qualifying reason; and

(B) - in aggregate.

202. Interstate Paid Leave Action Network

(a) In general -

(1) Establishment - There is established an Interstate Paid Leave Action Network the purpose of which is to provide support and incentives for the development and adoption of an interstate agreement in accordance with this title to benefit employees, States, and employers by—

(A) - facilitating streamlined benefit delivery;

(B) - reducing administrative burden; and

(2) Membership - The I–PLAN shall include a State focal from each State receiving a conforming grant under section 204(a).

(3) Meetings - The I–PLAN shall meet not less than 3 times in each calendar year.

(4) Processes -

(A) Certification - States shall certify to the Secretary their participation in the I–PLAN.

(B) Procedures - State focals may determine, in coordination with the Secretary, the process for the following:

(i) - the order in which States approach the substance of each I–PLAN requirement;

(ii) - the process by which States reach consensus on such substance and agree to the I–PLAN Agreement;

(iii) - the process by which a State may leave the I–PLAN; and

(iv) - other processes relevant to the success and administration of the I–PLAN as the Secretary determines.

(5) Roadmap - The I–PLAN shall develop, and annually update, a roadmap for developing and implementing the interstate agreement described in subsection (b) including metrics for success.

(b) Duties - The duty of the I–PLAN shall be to produce an interstate agreement into which States offering a State paid family and medical leave program may enter and to periodically update such agreement as necessary to improve clarity and scope. Such agreement shall be publicly available and pursue each of the following requirements:

(1) Policy standard - Create a single policy standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including definitions for the following:

(A) - Benefit day, week, and year.

(B) - Base period.

(D) - Place of performance.

(E) - Family members.

(F) - Employee eligibility.

(G) - Employee coverage.

(H) - Waiting period.

(I) - Covered wage.

(2) Administrative standard - Create a single administrative standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including—

(A) - the process by which employers respond to requests from States to verify and provide employee information for eligibility determinations, including wages and work history;

(B) - the process by which employers provide periodic and permanent notice of the availability of paid leave under a State program or employer plan to employees;

(D) - timing of and process for collecting payroll contributions;

(E) - coordinating with other types of paid time off and leaves of absence;

(F) - continuing other benefits;

(G) - accessing employee leave information;

(H) - protecting personal information;

(I) - creating and updating written leave materials such as handbooks;

(J) - maintaining records and documentation; and

(K) - if a State program permits employers to elect to provide employer plans, facilitating such election, including by creating a single equivalency standard with respect to all participating States to determine whether the maximum monetary value of an employer plan for the average weekly wage of workers in the State for total covered establishments in all industries (based on the most recent calendar year for which data are available from the Quarterly Census of Employment and Wages program of the BLS) is greater than or equal to the maximum monetary value of a State program (or that of multiple States), taking into account programmatic elements such as—

(i) - how benefit duration, wage replacement, absence of a weekly benefit cap, absence of a waiting week, and other factors interact in a quantitative manner; and

(ii) - how an individual taking paid family and medical leave for a qualifying reason affects the ability of such individual to take paid family and medical leave for another qualifying reason.

(3) Coordination of benefits across State programs - Create a single process for State programs to process claims for an individual who has work history across multiple participating States so that a single State program may provide benefits to such individual on the basis of all such work history.

203. National intermediary to support the Interstate Paid Leave Action Network

(a) Authority To make grants - Subject to the availability of appropriations under section 205(a), the Secretary, acting through the Employment and Training Administration, shall award a grant to one national intermediary to facilitate the activities of the I–PLAN.

(b) Use of funds - A national intermediary awarded a grant under subsection (a) shall use funds for the costs related to each of the following:

(1) Meetings - Meeting activities, including—

(A) - convening the State focals as described in section 202(a)(3), including reasonable travel, transportation, and other expenses of State focals and staff of the national intermediary (and any necessary accompanying State personnel);

(B) - making publicly available information on the agendas and outcomes of such meetings; and

(i) - not later than 12 months after the date of enactment of this title, making publicly available the roadmap described under section 202(a)(5); and

(ii) - making any updates to such roadmap publicly available.

(2) Annual report - Producing and making publicly available on an annual basis a report that compares State programs, including information on—

(A) - benefit eligibility;

(B) - the maximum number of weeks an eligible employee is allowed to receive benefits—

(i) - for each qualifying reason; and

(ii) - in aggregate;

(D) - maximum weekly benefit amount;

(E) - how such programs are financed by employees and employers, including the payroll tax rate and amount of wages subject to tax;

(F) - whether and how such programs allow employers to provide employer plans, taking into consideration elements such as—

(i) - benefit payment timeliness; and

(ii) - employer and employee administrative complexity;

(G) - whether and how such programs coordinate with other types of paid-time off and leaves of absence;

(H) - the reasons, including qualifying reasons, under which an individual is eligible to take paid family and medical leave; and

(I) - other activities essential for the success, effectiveness, and sustainability of the I–PLAN.

(3) Outreach and coordination - Engagement, consulting, and gathering relevant information in coordination with I–PLAN States from a wide range of external stakeholders, including—

(A) - State legislatures;

(B) - Governors;

(D) - representatives of employers, including—

(i) - employers with employees in multiple States; and

(ii) - employers with fewer than 50 employees;

(E) - self-employed individuals;

(F) - policy experts and other organizations with expertise on paid leave and unemployment compensation programs; and

(G) - Tribal governments.

(4) Standardized and interoperable technology system for wages - Providing a standardized technology-based system to facilitate States’ ability to carry out the I–PLAN Agreement, allowing States to process interstate claims and strengthen program integrity, that—

(A) - adopts or leverages modular technology that—

(i) - ensures privacy, security, and prompt data availability;

(ii) - enhances and streamlines the claimant, employer, and participating State experience; and

(iii) - is interoperable with other relevant State systems; and

(B) - permits States to report on, to the extent reasonable and technologically feasible, and disaggregated by qualifying reason, on trends such as—

(i) - the number of initial and continued benefit claims;

(ii) - average duration of benefits;

(iii) - average weekly benefit amount;

(iv) - average time between filing a claim and receiving an initial benefit payment; and

(v) - the accuracy of benefit payment amounts.

(5) Additional uses - Additional activities, including—

(A) - hiring and compensating staff;

(B) - formulating guidance, recommendations, and best practices for States;

(D) - providing technical assistance to States; and

(E) - creating or leveraging technology essential for the success and effectiveness of the I–PLAN.

(1) In general - Subject to paragraph (2), the period during which payments are made to an entity from an award of a grant under subsection (a) shall be 5 years.

(2) Compliance - The Secretary shall annually evaluate whether the national intermediary is complying with the requirements of this title and, if the Secretary determines that the national intermediary is not so complying, shall withhold any payment or part of the payment to the national intermediary under this section for the following fiscal year unless and until the Secretary determines the national intermediary has remedied such compliance issue.

(d) National intermediary oversight - The Secretary shall—

(1) - monitor the national intermediary to ensure compliance with the requirements of this title;

(2) - provide technical assistance to assist the national intermediary with such compliance; and

(3) - require regular reports on the performance of the national intermediary, including on the roadmap under section 202(a)(5), the use of funds under section 203(b), and other methods of evaluation.

204. Grants to eligible States

(a) Conforming grants -

(1) In general -

(A) Authority to make grants - Subject to the availability of appropriations under section 205(b), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make a conforming grant to each eligible State.

(B) Amount of grant -

(i) In general - A grant to an eligible State under this subsection shall be—

(I) - not less than $1,500,000 and not more than $8,000,000; and

(II) - subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by the Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States.

(ii) Adjustment - The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 205(b) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i).

(2) Eligible States -

(A) In general - To be eligible to receive a grant under paragraph (1), a State shall—

(i) - have a State focal; and

(ii) - participate in the I–PLAN in good faith.

(B) Good faith requirement -

(i) Withholding - If the Secretary, in consultation with the national intermediary awarded the grant under section 203(a), determines that a State is not participating in the I–PLAN in good faith, the Secretary—

(I) - shall provide warning and feedback to States in a prompt manner; and

(II) - if, six months after the date on which the Secretary provides such warning and feedback, the Secretary determines such State continues not to participate in the I–PLAN in good faith, the Secretary may elect to withhold a portion or the total amount of a grant under paragraph (1) to such State.

(ii) Restoration - If the Secretary elects to withhold an amount from a State under clause (i)(II), the Secretary may later elect to provide the amount so withheld to such State if the Secretary later determines that such State is participating in good faith.

(b) Implementation grants -

(1) In general -

(A) Authority to make grants - Subject to the availability of appropriations under section 205(c), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make an implementation grant to each eligible State.

(B) Amount of grant -

(i) In general - A grant to an eligible State under this subsection shall be—

(I) - not less than $1,500,000 and not more than $8,000,000; and

(II) - subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States.

(ii) Adjustment - The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 205(c) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i).

(2) Eligibility -

(A) In general - Subject to subparagraph (B), to be eligible to receive a grant under paragraph (1), a State shall—

(i) - meet the requirements of subsection (a)(2)(A); and

(ii) - have entered into the I–PLAN Agreement.

(B) Limitation - A State described in subparagraph (A) shall be ineligible to receive a grant for any fiscal year beginning after the date that is 4 years after the date on which such State enters into the I–PLAN Agreement in which such State does not meet the requirements of such Agreement.

(1) - to help pay administrative costs, including costs related to—

(A) - customer service;

(B) - staffing and training;

(D) - data sharing;

(E) - identity validation; and

(F) - program awareness; and

(2) - to help small businesses, as defined by the State, afford employer payroll contributions or access other forms of technical and operational assistance related to State paid family and medical leave.

205. Authorization of appropriations

(a) National intermediary grant - There are authorized to be appropriated not more than $8,824,106.36 for the purposes of section 203 for each of fiscal years 2026 through 2028.

(b) Conforming grants - There are authorized to be appropriated not more than $35,296,425.43 for the purposes of section 204(a) for each of fiscal years 2026 through 2028.

(c) Implementation grants - There are authorized to be appropriated not more than $35,296,425.43 for the purposes of section 204(b) for each of fiscal years 2026 through 2028.

119-HR3089

More Paid Leave for More Americans Act