Washington鈥檚 paid family leave program running short on cash
Washington state鈥檚 paid family leave program could hit a deficit as early as March and there are concerns about long-term solvency following a significant increase in demand for the benefit that launched in 2020.
Under the law, eligible workers receive 12 weeks paid time off for the birth or adoption of a child or for a serious medical condition of the worker or the worker鈥檚 family member, or 16 weeks for a combination of both. An additional two weeks may be used if there is a serious health condition with a pregnancy.
In the first six weeks, more than triple the amount of people expected applied for the program, and the demand has continued to be high. Since the start of the program, the Employment Security Department has processed more than 365,000 individual applications and has paid out more than 2.2 million weekly claims.
Officials with the Employment Security Department told lawmakers at a Senate Ways & Means Committee hearing last week that since the cash influx from the tax rate increase won鈥檛 be available until the end of the first quarter, there are concerns about the fund鈥檚 solvency and said that a deficit was likely soon.
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