Trump Expands Tax Credits for Paid Family Leave

The Trump administration will introduce new guidance expanding tax breaks for employers that offer paid family leave. The White House also plans to feature the measure in its campaign ahead of November's congressional elections.

Treasury Secretary Scott Bessent and House Speaker Mike Johnson will present the new policy alongside Congressman Juan Ciscomani in Arizona.

The expansion applies to a tax break introduced in 2017 during Trump's first term. Until now, employers could claim the credit only if they paid at least half of an employee's wages during a family or medical leave of at least two weeks. Under the new rules, they will also be able to claim the credit if they cover the cost of the leave through insurance premiums.

"Hardworking Americans should not have to choose between caring for a loved one and earning a paycheck", Bessent said. The White House called the measure another significant victory for working parents.

The United States remains the only country in the Organization for Economic Cooperation and Development (OECD) without a legal obligation to provide paid family and medical leave.

(Reuters, bak)