Totally Free Time Off for Caregivers – Universal Paid Leave Part of New American Families Plan

Family putting money in a piggy bank

President Joe Biden’s $1.8 trillion American Families Plan includes a provision for universal paid family and medical leave for Americans. However, Massachusetts Rep. Richard Neal, chairman of the House Ways and Means Committee, has proposed an even more extensive package: the Building an Economy for Families Act, which would make permanent expansions to tax credits for child care and provide up to 12 weeks of paid family and medical leave, CNBC reports.

See: Nearly 200 Business Leaders Press Congress to Expand Family and Medical Leave
Find: Should Stay-at-Home Moms Get Basic Income? Experts Weigh In

If it follows the tenets of other paid leave programs across the U.S., as well as the federal Family Medical Leave Act signed by Barack Obama during his presidency, the act would provide leave to new parents, including new adoptive or foster parents, within the first 12 months of a child’s life, and to workers caring for older adults or other family members.

Make Your Money Work for You reports that the paid family and medical leave could total as much as two-thirds of a worker’s weekly wage. It would come with job protection provided by FMLA. It is not specified whether the bill would override paid leave insurance in states that already have statutory policies; presumably, the better benefits would prevail.

Massachusetts introduced one of the most robust paid family and medical leave policies in the U.S. this year, offering employees paid family leave benefits to care for a new infant, adopted, or foster child or for family members if a spouse is deployed, according to insurance wholesaler the D.B.L. Center Ltd., which specializes in statutory benefits across the Northeast. As of July 2021, Massachusetts PFML will also pay for leave to care for family members with serious health conditions; right now it does so if that family member is a covered member of the military services.

See: The 50 Best Companies for Working Dads
Find: The 10 Best Companies for Working Moms

The passing of a federal PFML act would let workers in states with statutory paid leave programs take home more of their pay. Currently, states with PFL or PFML benefits, which include New York, New Jersey, Massachusetts and California, deduct premiums from workers’ pre-tax pay. It appears that the plan proposed by Neal would be paid for directly by the federal government through taxes and not deducted from employees’ payroll.

Make Your Money Work for You

The plan would provide workers across the U.S. with options to bond with their children or care for sick family members while maintaining some level of income. The majority of states do not have paid family and/or medical leave coverage right now.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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