Short title

This Act may be cited as the

Interstate Paid Leave Action Network Act of 2025

I–PLAN Act of 2025

Definitions

In this Act: (1)

BLS

The term BLS means the Bureau of Labor Statistics. (2)

Employer-provided paid family and medical leave plan

The terms employer-provided paid family and medical leave plan and employer plan mean a plan that— (A)is provided by an employer to the employees of such employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan); (B)is an option for an employer within the structure of a State paid family and medical leave program in such State; and (C)meets or exceeds the requirements of the State paid family and medical leave program of the State in which such employee is employed. (3)

I–PLAN

The term I–PLAN means the Interstate Paid Leave Action Network established in section 3(a). (4)

I–PLAN agreement

The term I–PLAN Agreement means the interstate agreement produced pursuant to section 3(b). (5)

National intermediary

The term national intermediary means a national nongovernmental workforce organization that has extensive experience partnering with the Department of Labor to operate interstate technological systems and the electronic transmission of information and data for State workforce agencies and employers. (6)

Paid leave

The term paid leave means an increment of compensated leave that is provided, in the case of a State program, by such State or, in the case of an employer plan, by such employer for use during a period in which such individual is not working due to a qualifying reason. (7)

Qualifying reason

The term qualifying reason means, in relation to an individual, a reason described in subparagraphs (A) through (D) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)) (applied for purposes of this paragraph as if the individual involved were the employee referred to in such section). (8)

Secretary

The term Secretary means the Secretary of Labor. (9)

State focal

The term State focal means, with respect to a State, an individual— (A)designated by the State agency in charge of such State’s paid family and medical leave program to— (i)participate in the I–PLAN; (ii)lead such State’s efforts to adopt and implement the I–PLAN Agreement; and (iii)communicate with key paid leave stakeholders across the State; and (B)who— (i)is employed by such State’s paid family and medical leave program; and (ii)has knowledge, experience, and authority in paid leave matters. (10)

State paid family and medical leave program

The terms State paid family and medical leave program and State program mean a program under State law that provides, during any 24-month period, a total of not less than 6 weeks of paid leave to individuals— (A)for each qualifying reason; and (B)in aggregate.

Interstate Paid Leave Action Network

(a)

In general

(1)

Establishment

There is established an Interstate Paid Leave Action Network the purpose of which is to provide support and incentives for the development and adoption of an interstate agreement in accordance with this Act to benefit employees, States, and employers by— (A)facilitating streamlined benefit delivery; (B)reducing administrative burden; and (C)coordinating and harmonizing State programs. (2)

Membership

The I–PLAN shall include a State focal from each State receiving a conforming grant under section 5(a). (3)

Meetings

The I–PLAN shall meet not less than 3 times in each calendar year. (4)

Processes

(A)

Certification

States shall certify to the Secretary their participation in the I–PLAN. (B)

Procedures

State focals may determine, in coordination with the Secretary, the process for the following: (i)the order in which States approach the substance of each I–PLAN requirement; (ii)the process by which States reach consensus on such substance and agree to the I–PLAN Agreement; (iii)the process by which a State may leave the I–PLAN; and (iv)other processes relevant to the success and administration of the I–PLAN as the Secretary determines. (5)

Roadmap

The I–PLAN shall develop, and annually update, a roadmap for developing and implementing the interstate agreement described in subsection (b) including metrics for success. (b)

Duties

The duty of the I–PLAN shall be to produce an interstate agreement into which States offering a State paid family and medical leave program may enter and to periodically update such agreement as necessary to improve clarity and scope. Such agreement shall be publicly available and pursue each of the following requirements: (1)

Policy standard

Create a single policy standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including definitions for the following: (A)Benefit day, week, and year. (B)Base period. (C)Intermittent and reduced schedule leave. (D)Place of performance. (E)Family members. (F)Employee eligibility. (G)Employee coverage. (H)Waiting period. (I)Covered wage. (2)

Administrative standard

Create a single administrative standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including— (A)the process by which employers respond to requests from States to verify and provide employee information for eligibility determinations, including wages and work history; (B)the process by which employers provide periodic and permanent notice of the availability of paid leave under a State program or employer plan to employees; (C)employees’ responsibility to provide notices of leave to their employers; (D)timing of and process for collecting payroll contributions; (E)coordinating with other types of paid time off and leaves of absence; (F)continuing other benefits; (G)accessing employee leave information; (H)protecting personal information; (I)creating and updating written leave materials such as handbooks; (J)maintaining records and documentation; and (K)if a State program permits employers to elect to provide employer plans, facilitating such election, including by creating a single equivalency standard with respect to all participating States to determine whether the maximum monetary value of an employer plan for the average weekly wage of workers in the State for total covered establishments in all industries (based on the most recent calendar year for which data are available from the Quarterly Census of Employment and Wages program of the BLS) is greater than or equal to the maximum monetary value of a State program (or that of multiple States), taking into account programmatic elements such as— (i)how benefit duration, wage replacement, absence of a weekly benefit cap, absence of a waiting week, and other factors interact in a quantitative manner; and (ii)how an individual taking paid family and medical leave for a qualifying reason affects the ability of such individual to take paid family and medical leave for another qualifying reason. (3)

Coordination of benefits across State programs

Create a single process for State programs to process claims for an individual who has work history across multiple participating States so that a single State program may provide benefits to such individual on the basis of all such work history.

National intermediary to support the Interstate Paid Leave Action Network

(a)

Authority To make grants

Subject to the availability of appropriations under section 6(a), the Secretary, acting through the Employment and Training Administration, shall award a grant to one national intermediary to facilitate the activities of the I–PLAN. (b)

Use of funds

A national intermediary awarded a grant under subsection (a) shall use funds for the costs related to each of the following: (1)

Meetings

Meeting activities, including— (A)convening the State focals as described in section 3(a)(3), including reasonable travel, transportation, and other expenses of State focals and staff of the national intermediary (and any necessary accompanying State personnel); (B)making publicly available information on the agendas and outcomes of such meetings; and (C) (i)not later than 12 months after the date of enactment of this Act, making publicly available the roadmap described under section 3(a)(5); and (ii)making any updates to such roadmap publicly available. (2)

Annual report

Producing and making publicly available on an annual basis a report that compares State programs, including information on— (A)benefit eligibility; (B)the maximum number of weeks an eligible employee is allowed to receive benefits— (i)for each qualifying reason; and (ii)in aggregate; (C)wage replacement rate and how that may vary based on prior earnings; (D)maximum weekly benefit amount; (E)how such programs are financed by employees and employers, including the payroll tax rate and amount of wages subject to tax; (F)whether and how such programs allow employers to provide employer plans, taking into consideration elements such as— (i)benefit payment timeliness; and (ii)employer and employee administrative complexity; (G)whether and how such programs coordinate with other types of paid-time off and leaves of absence; (H)the reasons, including qualifying reasons, under which an individual is eligible to take paid family and medical leave; and (I)other activities essential for the success, effectiveness, and sustainability of the I–PLAN. (3)

Outreach and coordination

Engagement, consulting, and gathering relevant information in coordination with I–PLAN States from a wide range of external stakeholders, including— (A)State legislatures; (B)Governors; (C)employees; (D)representatives of employers, including— (i)employers with employees in multiple States; and (ii)employers with fewer than 50 employees; (E)self-employed individuals; (F)policy experts and other organizations with expertise on paid leave and unemployment compensation programs; and (G)Tribal governments. (4)

Standardized and interoperable technology system for wages

Providing a standardized technology-based system to facilitate States’ ability to carry out the I–PLAN Agreement, allowing States to process interstate claims and strengthen program integrity, that— (A)adopts or leverages modular technology that— (i)ensures privacy, security, and prompt data availability; (ii)enhances and streamlines the claimant, employer, and participating State experience; and (iii) is interoperable with other relevant State systems; and (B)permits States to report on, to the extent reasonable and technologically feasible, and disaggregated by qualifying reason, on trends such as— (i)the number of initial and continued benefit claims; (ii)average duration of benefits; (iii)average weekly benefit amount; (iv)average time between filing a claim and receiving an initial benefit payment; and (v)the accuracy of benefit payment amounts. (5)

Additional uses

Additional activities, including— (A)hiring and compensating staff; (B)formulating guidance, recommendations, and best practices for States; (C)providing training on program administration; (D)providing technical assistance to States; and (E)creating or leveraging technology essential for the success and effectiveness of the I–PLAN. (c)

Duration of award

(1)

In general

Subject to paragraph (2), the period during which payments are made to an entity from an award of a grant under subsection (a) shall be 5 years. (2)

Compliance

The Secretary shall annually evaluate whether the national intermediary is complying with the requirements of this Act and, if the Secretary determines that the national intermediary is not so complying, shall withhold any payment or part of the payment to the national intermediary under this section for the following fiscal year unless and until the Secretary determines the national intermediary has remedied such compliance issue. (d)

National intermediary oversight

The Secretary shall— (1)monitor the national intermediary to ensure compliance with the requirements of this Act; (2)provide technical assistance to assist the national intermediary with such compliance; and (3)require regular reports on the performance of the national intermediary, including on the roadmap under section 3(a)(5), the use of funds under section 4(b), and other methods of evaluation.

Grants to eligible States

(a)

Conforming grants

(1)

In general

(A)

Authority to make grants

Subject to the availability of appropriations under section 6(b), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make a conforming grant to each eligible State. (B)

Amount of grant

(i)

In general

A grant to an eligible State under this subsection shall be— (I)not less than $1,500,000 and not more than $8,000,000; and (II)subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by the Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States. (ii)

Adjustment

The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 6(b) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i). (2)

Eligible States

(A)

In general

To be eligible to receive a grant under paragraph (1), a State shall— (i)have a State focal; and (ii)participate in the I–PLAN in good faith. (B)

Good faith requirement

(i)

Withholding

If the Secretary, in consultation with the national intermediary awarded the grant under section 4(a), determines that a State is not participating in the I–PLAN in good faith, the Secretary— (I)shall provide warning and feedback to States in a prompt manner; and (II)if, six months after the date on which the Secretary provides such warning and feedback, the Secretary determines such State continues not to participate in the I–PLAN in good faith, the Secretary may elect to withhold a portion or the total amount of a grant under paragraph (1) to such State. (ii)

Restoration

If the Secretary elects to withhold an amount from a State under clause (i)(II), the Secretary may later elect to provide the amount so withheld to such State if the Secretary later determines that such State is participating in good faith. (b)

Implementation grants

(1)

In general

(A)

Authority to make grants

Subject to the availability of appropriations under section 6(c), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make an implementation grant to each eligible State. (B)

Amount of grant

(i)

In general

A grant to an eligible State under this subsection shall be— (I)not less than $1,500,000 and not more than $8,000,000; and (II)subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States. (ii)

Adjustment

The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 6(c) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i). (2)

Eligibility

(A)

In general

Subject to subparagraph (B), to be eligible to receive a grant under paragraph (1), a State shall— (i)meet the requirements of subsection (a)(2)(A); and (ii)have entered into the I–PLAN Agreement. (B)

Limitation

A State described in subparagraph (A) shall be ineligible to receive a grant for any fiscal year beginning after the date that is 4 years after the date on which such State enters into the I–PLAN Agreement in which such State does not meet the requirements of such Agreement. (c)

Use of funds

A State may use grants received under this section— (1)to help pay administrative costs, including costs related to— (A)customer service; (B)staffing and training; (C)technology; (D)data sharing; (E)identity validation; and (F)program awareness; and (2)to help small businesses, as defined by the State, afford employer payroll contributions or access other forms of technical and operational assistance related to State paid family and medical leave.

Authorization of appropriations

(a)

National intermediary grant

There are authorized to be appropriated not more than $10,000,000 for the purposes of section 4 for each of fiscal years 2026 through 2028. (b)

Conforming grants

There are authorized to be appropriated not more than $40,000,000 for the purposes of section 5(a) for each of fiscal years 2026 through 2028. (c)

Implementation grants

There are authorized to be appropriated not more than $40,000,000 for the purposes of section 5(b) for each of fiscal years 2026 through 2028.