Minnesota lawmakers consider bill to tweak new paid family and medical leave program
ST. PAUL, Minn. — Minnesota lawmakers are considering a bill to tweak the new paid family and medical leave program they passed last year.
This comes as a new study suggests more tax dollars are needed to pay for the program, which would provide up to 12 weeks of paid leave for a single qualifying event, like bonding with a newborn after giving birth or taking extended time off for cancer treatment.
The program is funded by a payroll tax increase that's split between employers and employees.
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The law passed last year was set at 0.7% for the first year, but a recent analysis suggested the premium rate should be increased to 0.78% — an 11% increase.
"A little number times a big number is still a big number, and we're talking as this bill left the chamber last year at a $1.5 billion tax increase," said Sen. Eric Pratt, R-Prior Lake. "And so $1.5 billion times a half a percent is still a big number."
The tweaks to the bill are to ensure implementation runs smoothly when the program officially rolls out in January 2026, and includes fine-tuning the language to reduce any ambiguities and simplifying the administration process for applicants and employers.
