Washington’s Paid Family and Medical Leave program is facing financial strain due to increased usage, with officials considering higher taxes or removing income caps to address a potential deficit by October 2024.
Washington’s Paid Family and Medical Leave Program Faces Financial Strain Amid Rising Demand
According to The Center Square, Washington’s Paid Family and Medical Leave (PFML) program, launched four years ago, is facing financial issues because more people are using it. The program helps workers by paying up to 90% of their salary when they need time off for things like having a baby or caring for a sick family member. However, the fund that pays for these benefits is running low, and officials say it could be in the red as soon as October 2024.
Alison Eldridge, who helps run Washington’s Paid Family and Medical Leave program, told state lawmakers that the number of people receiving benefits has been growing steadily. In 2023 alone, the program paid out almost $1.5 billion, more than double what it paid out in 2020. To cover these costs, the tax rate on workers has already been increased once, from 0.4% to 0.8%, in 2023.
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$1.5 Billion and Rising: Washington’s Paid Family and Medical Leave Program Faces Financial Crisis – Lawmakers Weigh Changes! (PHOTO: Washington State Standard)
Debate Over Higher Taxes and Coverage Limits Looms for Washington’s Paid Family and Medical Leave Program
Now, there are discussions among lawmakers about possibly raising the tax rate even more, to close to 1%. Some legislators are also considering removing the cap on how much of a person’s income can be taxed for Washington’s Paid Family and Medical Leave program. Despite some criticism that the program benefits mainly middle- and upper-income earners, Washington’s Paid Family and Medical Leave remains an important support for many Washington residents. However, its future depends on decisions that lawmakers will make in the coming months.
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