Sens. Bill Cassidy of Louisiana and Kyrsten Sinema of Arizona bridged a political divide on Tuesday by introducing the first bipartisan paid parental leave idea.
The proposal leverages a portion of the Republican tax overhaul to let parents pay for childcare or time off work. The tax bill President Trump signed into law in 2017 increased the Child Tax Credit from $1,000 to $2,000 per year, a portion of which Sinema and Cassidy want new parents to be able to take early to help fund childcare or lost wages.
Under current law, parents are allowed to claim an annual Child Tax Credit of up to $2,000 for each child under the age of 17. The Sinema-Cassidy proposal would give parents the option to receive $5,000 up front and then adjusts their tax credit to $1,500 a year for the next 10 years. Families who make less than $12,000 a year and therefore don’t qualify for the Child Tax Credit could still get the equivalent of 12 weeks of wage replacement, and then offset the Child Tax Credit during the next 15 years, rather than 10, so that the amount foregone over time is smaller.
“In many cases, the first year of life is the most expensive for a family,” Cassidy said in a statement. “This legislation addresses this, focuses resources and eases financial strain to provide a longer bonding period for the family.”
Sinema and Cassidy wrote in a fact sheet that their idea wouldn’t raise taxes, affect Social Security, or impose an mandate on employers. Unlike legislation from Democrats, the plan would not extend to covering lost wages for someone who has to take time off work to undergo medical treatment or care for a sick family member.
In a statement, Sinema called her idea “an important first step.”
“Too many parents are forced to choose between losing time with a new child or taking on debt to make up for lost wages,” she said.
The U.S. stands in contrast to other industrialized nations in that it has not set a mandatory or subsidized leave policy. Under the 1993 Family Medical Leave Act, employers with 50 workers or more must allow 12 weeks of leave every year so they care for a new child or an ill relative, but in most cases, the leave isn’t paid.
Until Tuesday, Democrats and Republicans had never aligned before on providing for paid parental leave, but interest in the issue has been growing with the encouragement of senior White House adviser and first daughter Ivanka Trump.
In May, the Senate Finance Committee announced a new Senate bipartisan working group to study paid family leave, with Cassidy and Democratic senator Maggie Hassan of New Hampshire placed at the helm.
Most Senate Democrats support a bill from Sen. Kirsten Gillibrand of New York, who is also running for president, that would pay for parental and sick leave through a payroll tax.
No Republicans have welcomed that approach, but they have presented their own ideas. Among Republicans, Sens. Joni Ernst of Iowa and Mike Lee of Utah have paired up for a bill, and Sens. Marco Rubio of Florida and Mitt Romney of Utah have paired up on another idea, both of which involve letting new parents take out Social Security early in exchange for delaying retirement.
