New Bill Proposes 'IPLAN Act of 2025' to Untangle State Paid Leave Rules with Shared Standards and Tech

Ever tried figuring out benefits when you've worked in a couple of different states? It can be a headache. The "Interstate Paid Leave Action Network Act of 2025," or IPLAN Act for short, is a new piece of legislation aiming to fix that for paid family and medical leave. This bill isn't creating a new national paid leave program itself, but it's proposing a system to help states that do have these programs work together smoothly. The main idea is to create common rules and tech infrastructure, making life easier for employees who move or work across state lines, and for businesses operating in multiple states. It plans to do this by setting up a network, developing shared standards, and providing grants – authorizing up to $90 million annually from 2026 through 2028 – to get states on board and build the necessary systems.

Weaving a National Web: How IPLAN Would Work

So, what's the game plan? The bill proposes creating the Interstate Paid Leave Action Network (IPLAN), a group made up of representatives from participating states (Sec 3a). Think of it as a working group whose main job is to hammer out an "IPLAN Agreement." This agreement would be a public playbook covering two big areas:

• Consistent Policies (Sec 3(b)(2)): Imagine a world where the definition of a "benefit week," how your eligibility is calculated (the "base period"), or what counts as a "qualifying reason" for leave (like having a baby or a serious health issue, as defined under the Family and Medical Leave Act) is the same across several states. That's the goal. This means if you're a software developer who worked in Oregon for three years and then took a job in California, and both states are in IPLAN, figuring out your paid leave eligibility would be much simpler because they're using the same core definitions.
• Streamlined Admin (Sec 3(b)(3)): This is about the nuts and bolts. IPLAN would aim for a single way for employers to verify employee info, for employees to give notice about needing leave, for states to collect payroll contributions (if they have them), and even how to handle an employer's own paid leave plan to see if it stacks up against the state's program. For a national retailer, this could mean less time spent navigating different leave rules for their stores in different IPLAN states.

A key piece is coordinating benefits for folks with work history in multiple states, allowing one state program to potentially handle a claim based on all relevant work history (Sec 3(b)(4)).

Fueling the Network: Grants, Tech, and Support

Good ideas need resources, and the IPLAN Act outlines how this network would be funded and supported:

1. The National Helper (Sec 4): The bill authorizes the Secretary of Labor to give a grant (up to $10 million per year from 2026-2028) to a single national organization. This organization would be the backbone support for IPLAN – organizing meetings, publishing an annual report comparing state programs (think benefit amounts, eligibility, etc.), doing outreach, and, crucially, developing a standardized technology system. This tech platform is designed to help states process those tricky interstate claims, protect privacy, and allow for better data tracking on how paid leave is being used.

2. Cash for States (Sec 5): States themselves can get in on the funding. There are two types of annual grants proposed (each drawing from a pool of up to $40 million per year from 2026-2028):

   • Conforming Grants: To help states get involved in IPLAN – things like designating a state point person (a "State focal") and participating in developing the IPLAN Agreement. States need to show they're participating in "good faith" to keep the funds flowing.
   • Implementation Grants: Once a state officially signs onto the IPLAN Agreement, these grants would help them put the shared standards and systems into practice.

States can use this grant money for a variety of administrative costs, like improving customer service, staff training, tech upgrades, and raising awareness about paid leave. Interestingly, the bill also specifies that funds can be used to help small businesses afford employer payroll contributions (if applicable in their state program) or access technical help to navigate paid leave (Sec 5c). This could be a big deal for a local bakery or construction firm trying to manage new leave requirements.

The Bottom Line: What Could IPLAN Mean for You?

If the IPLAN Act moves forward and states opt-in, the biggest change would be less confusion and more predictability around paid family and medical leave, especially if your work life isn't confined to one state. For employees, it could mean easier access to benefits you're entitled to, regardless of which participating state you're in or have worked in previously. For businesses, particularly those operating across multiple states, it promises a reduction in the administrative gymnastics currently required to comply with a patchwork of different state laws.

The bill also builds in accountability, with the Secretary of Labor monitoring the national intermediary and states needing to actively participate to receive ongoing grant funding. While this Act doesn't mandate paid leave nationwide, it aims to build a much-needed bridge between states that already have, or will have, these vital programs, making the system work better for everyone involved.