The move would let employers claim the 2017 credit by paying insurance premiums, and Scott Bessent, Mike Johnson and Juan Ciscomani are set to promote it outside Phoenix.
The U.S. Treasury Department is set to announce guidance on Wednesday that broadens incentives for employers to offer paid family leave by allowing them to claim an existing tax credit when they pay insurance premiums covering leave costs. The credit, created in 2017 during President Donald Trump's first-term tax law, applies when employers provide at least two weeks of family and medical leave worth at least 50% of an employee's wages. Treasury Secretary Scott Bessent and House Speaker Mike Johnson are expected to join Arizona Representative Juan Ciscomani outside Phoenix to discuss the policy, giving the White House an economic message it hopes to carry into the midterm elections. The political backdrop is challenging for Republicans: a Reuters/Ipsos poll released Monday found voters prefer Democrats' stewardship of the economy 37% to 36%, while registered voters favor Democrats on a generic congressional ballot by a 5% margin. The administration says the approach uses tax incentives rather than direct federal spending to push employers to bear the cost of paid leave. The U.S. remains the only member of the OECD (38-country developed economies group) without a paid family and medical leave requirement.