Budget Reconciliation Could Offer Hope for Paid Family Leave – What Does It Mean For You?

Mandatory Credit: Photo by Michael Brochstein/SOPA Images/Shutterstock (12368257k)House Speaker Nancy Pelosi (D-CA) speaks at her weekly press conference.
Michael Brochstein/SOPA Images/Shutterstock / Michael Brochstein/SOPA Images/Shutterstock

American workers who support a national paid family leave program might get good news if Congressional Democrats use the upcoming budget reconciliation process to push such a plan through.

See: These States Still Ban Evictions, Even After National Ban Is Struck Down
Find: How To Convince Your Boss To Let You Keep Working From Home

Paid family leave is one of the top priorities for Democrats as they head into the budget reconciliation, CNBC reported on Monday. Because of the way the budget reconciliation process works — requiring a simple majority vote in Congress that cannot be filibustered — the Dems hold the upper hand in terms of approving a paid family leave plan, which many Republicans oppose.

Last week, U.S. House Democrats voted to adopt a budget resolution that is needed to unlock a filibuster-proof $3.5 trillion package of domestic spending and tax breaks, the Roll Call website reported. Congressional leaders hope to have the reconciliation package ready for floor action by Sept. 15, with the goal of passing both the reconciliation and infrastructure bill by the end of the month.

Democrats warmed to paid family leave after seeing the results of a temporary federal program put in place last year as part of the Families First Coronavirus Response Act. That program, which helped qualifying families keep their jobs and pay their bills, ended at the close of 2020.

Make Your Money Work for You

Supporters of permanent paid family and medical leave spent part of the summer on a two-week “Paid Leave for All” campaign that stopped in 10 states. Now they see a golden opportunity to get their proposals through during the upcoming budget reconciliation.

“We think the next four weeks are going to be a sprint, and we think this is the year that it has to happen,” Dawn Huckelbridge, director of Paid Leave for All, told CNBC.

Because Democrats control Congress by a slim margin, they can pass major legislation with a simple majority vote, the Lexology legal website noted. But it’s no sure thing. Congress likely only has one more chance to attempt budget reconciliation this year, and there are complex rules on what can be passed.

See: The Biggest Problems Facing Social Security
Find:5 Significant Aspects of the Infrastructure Bill That Could Lead To Lasting Impact

If Dems are able to push a family leave plan through, it likely will align with President Joe Biden’s American Families Plan for 12 weeks of paid leave. Under that plan, qualifying workers would be allowed to care for a new child, recover from illness, care for a family member or deal with other life events such as bereavement and military deployment.

Make Your Money Work for You

The program would offer workers up to $4,000 a month, Lexology reported, with a minimum of two-thirds of average weekly wages replaced for most workers, and 80% for lower-earning workers. The program would phase in over a 10-year period.

More From GOBankingRates

About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.