The FAMILY Act Creates National Paid Leave Program: $4,000 Monthly Maximum Benefit Starts in 2026

The newly proposed Family and Medical Insurance Leave Act, or the FAMILY Act, sets up a national paid family and medical leave insurance program run by a brand-new office within the Social Security Administration (SSA). This isn’t just about traditional FMLA leave; it covers time off for your own serious health condition, caring for a wide range of family members (including those related by affinity, like a close friend who is family in all but name), and critically, time needed if you or a family member is a victim of domestic violence, sexual assault, or stalking. Applications for benefits can start 18 months after the law is enacted, with the first benefit year kicking off in 2026.

How Much You Get and Who Qualifies

To be eligible for this national benefit, you must have earned at least $2,000 over the most recent eight calendar quarters before your benefit period starts (that minimum will be adjusted for inflation after 2026). The actual monthly payout is calculated using a complex, tiered system based on your highest average monthly earnings from the last three years. Essentially, the less you earn, the higher the percentage of your wages you replace, with the highest earners getting a lower marginal rate. For the first year, the maximum monthly benefit is capped at $4,000, and the minimum is set at $580 (Sec. 4). This structure is designed to provide robust income replacement for lower and middle-income workers who often can’t afford unpaid leave. It’s important to note, though, that if you’re already collecting federal disability or certain state unemployment benefits, this new benefit might be reduced or disallowed.

Job Security and Anti-Retaliation Protections

One of the most powerful parts of this bill is the strong set of protections it provides against employer retaliation. If you take leave under this program, your employer must restore you to your old job or an equivalent position with the same pay and benefits. They also have to keep your group health insurance active (Sec. 4). The bill makes it crystal clear: it’s illegal for an employer to interfere with, deny, or retaliate against you for using these rights. In fact, if an employer takes negative action against you within 12 months of your return, the law creates a “rebuttable presumption” that the action was retaliation, shifting the burden of proof onto the employer. This gives employees real teeth to fight back. However, a small but important detail: these job protection rules don't apply to new hires during their first 90 days of employment, leaving recent starters vulnerable if they need leave right away (Sec. 4).

The New Office and State Coordination

To manage this massive new program, the FAMILY Act creates a dedicated Office of Paid Family and Medical Leave inside the SSA, led by a Deputy Commissioner (Sec. 3). This new office will handle everything from writing rules to processing claims and preventing fraud. For states that already have their own paid leave programs—the so-called “legacy States”—the bill provides a mechanism for coordination and funding. Starting in 2027, the SSA will issue grants to these states to cover the costs of their existing programs, provided they meet certain standards and agree to share data (Sec. 5). This is a smart move that prevents the federal program from immediately undercutting successful state efforts and recognizes the investment those states have already made. The complexity of the benefit calculation and the coordination with existing state programs means the SSA will have a monumental task in setting up the necessary infrastructure and ensuring timely payments, an issue the bill requires the GAO to study closely (Sec. 7).