WASHINGTON, D.C. — U.S. Senator Angus King (I-ME) is pressing Congressional appropriators to preserve funding for an advertising campaign promoting the paid family and medical leave (PMFL) tax credit. In a letter to Senators Patty Murray (D-WA) and Susan Collins (R-ME), the Chair and Vice Chair of the Senate Committee on Appropriations respectively, King writes in support of the $1 million approved in the FY 2025 Financial Services and General Government (FSGG) appropriations bill for the Small Business Administration (SBA) to support an awareness campaign promoting the uptake of the Paid Family and Medical Leave Tax Credit. His letter requests that this funding is preserved within the final FY 2025 appropriations package.

Earlier this year, King and his colleague, Senator Deb Fischer (R-NE), also recommended the Biden Administration raise awareness of the paid family leave tax credit. The Senators highlighted that due to delays in messaging guidance and bureaucratic confusion, many employers are unaware of the existing, proven, bipartisan PFML tax credit. The SBA would thus use these funds for education and advocacy efforts targeted at employers to improve the credit’s utilization.

In the letter King wrote, “The Paid Family Leave Tax Credit promotes the voluntary offering of up to 12 weeks of paid family leave by private employers. The credit enables employees to take paid family and medical leave for any reason allowed under the Family and Medical Leave Act (“FMLA”). It targets employees who are the least likely to have paid leave already: those currently earning less than $93,000.”

“Congress extended the Paid Family Leave Tax Credit for taxable years prior to January 1, 2026. The SBA should promote uptake of the credit so as many employees as possible can benefit from paid leave when they and their families need it,” he continued.

King previously led the effort to establish the country’s first ever nationwide PFML policy, with his colleague Deb Fisher (R-NE), which was included in the 2017 Tax Cuts and Jobs Act and implemented in 2018. Earlier this year, they introduced the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act that would provide certainty to businesses by making the paid family leave tax credit permanent and would provide additional options for financing paid leave such as through PFML insurance. Importantly, the bill also includes a King-led provision that allows eligible employers to receive the credit for leave offered in excess of any state or local mandates, offering a significant incentive for employers who wish to offer more leave than the Maine requirement.

In addition to Paid Family Leave, Senator King has long worked to expand access to child care and reduce the workforce shortage in the critical sector. He secured millions to improve child care services in the 2022, 2023, and 2024 omnibus appropriations bills, and worked to authorize the planning and development of a new child development center at Portsmouth Naval Shipyard. He is also the cosponsor of the recently-introduced Child and Dependent Care Tax Credit Enhancement Act, which would permanently expand the Child and Dependent Care Tax Credit that helps households offset their child care costs.

The full text of the letter can be found here and below.

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Dear Chair Murray, Vice Chair Collins, Chair Van Hollen, and Ranking Member Hagerty:

Paid family leave helps Americans to welcome new children, recover from illness, and care for loved ones. I write to request that you include the $1 million approved in the Fiscal Year 2025 Financial Services and General Government appropriations bill for use in an awareness campaign by the Small Business Administration, promoting uptake of the Paid Family and Medical Leave Tax Credit under section 45S of the Internal Revenue Code, in the final appropriations bill. Previously, report language was adopted in the Fiscal Year 2024 funding package to support these same efforts, and I appreciate your continued support.

The Paid Family Leave Tax Credit promotes the voluntary offering of up to 12 weeks of paid family leave by private employers. The credit enables employees to take paid family and medical leave for any reason allowed under the Family and Medical Leave Act (“FMLA”). It targets employees who are the least likely to have paid leave already: those currently earning less than $93,000.

Congress extended the Paid Family Leave Tax Credit for taxable years prior to January 1, 2026. The SBA should promote uptake of the credit so as many employees as possible can benefit from paid leave when they and their families need it.

Thank you for your consideration of our request. We appreciate your work on behalf of our Nation’s workers and their families.

Sincerely,

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