FAMILY Act

This bill creates a national paid family and medical leave insurance program, administered by the Social Security Administration, to provide partial wage replacement to eligible individuals who take time off for qualifying reasons such as their own serious health condition, caring for a family member with a serious health condition, or addressing needs related to domestic violence, sexual assault, or stalking. The program is funded by new payroll taxes on employees, employers, and self-employed individuals, with benefits paid from a new trust fund.

Sec. 2, Definitions: Defines key terms including "caregiving day" (up to 20 per month and 60 per benefit period), "eligible individual," "qualified caregiving," and "qualifying reason" for leave, which includes reasons under the Family and Medical Leave Act of 1993, caring for a qualified family member with a serious health condition, the individual's own serious health condition, and leave related to domestic violence, sexual assault, or stalking. "Qualified family member" includes a broad range of relatives and individuals with a close association equivalent to family.

Sec. 3, Office of Paid Family and Medical Leave: Establishes an office within the Social Security Administration headed by a Deputy Commissioner appointed by the Commissioner of Social Security. The Deputy Commissioner is responsible for hiring, issuing regulations, determining eligibility and benefit amounts, preventing fraud, providing public information, and submitting annual reports on benefit utilization by demographics.

Sec. 4, Family and Medical Leave Insurance Benefit Payments: Entitles eligible individuals to monthly benefits if they have filed an application, engaged in qualified caregiving, and meet minimum earnings requirements ($2,000 in 2024, adjusted for wage growth). The monthly benefit is the greater of a minimum benefit or a percentage of average monthly earnings (85% up to $1,257, 69% from $1,257 to $3,500, and 50% from $3,500 to $6,200 in 2024, indexed for later years), multiplied by the fraction of caregiving days in the month (up to 20 days).

Sec. 5, Funding for State Administration Option for Legacy States: Authorizes grants to states that had paid family and medical leave laws before this Act's enactment ("legacy states") to continue their programs. The grant amount is based on what the federal program would have paid in that state, including administrative costs up to 7%, or the state's total program costs, whichever is less. States must meet data sharing requirements and provide at least 12 weeks of leave with wage replacement at least equivalent to the federal program.

Sec. 6, Establishment of Family and Medical Leave Insurance Trust Fund: Creates a trust fund in the U.S. Treasury to hold appropriations and tax revenues for the program. Authorizes appropriations for the first three fiscal years to cover administration, benefits, and grants, with repayment required within 10 years. Benefits and grants are paid only from this trust fund.

Sec. 7, Internal Revenue Code Provisions: Amends the tax code to impose new payroll taxes to fund the program: a 0.2% tax on employees and employers each on wages, and a 0.4% tax on self-employment income. Similar taxes apply under the Railroad Retirement Tax Act.

Sec. 8, Regulations: Directs the Commissioner, in consultation with the Secretary of Labor, to issue regulations. A volunteer advisory body of up to 15 members, appointed by congressional leaders and the President, will provide input, and state programs must be considered.

Sec. 9, GAO Study: Requires the Government Accountability Office to report to Congress after 2024 on the program's first year, including the number of applications, processing times for eligibility determinations and appeals, and any excessive delays.