
10/13/2025
Washington’s innovative paid family and medical leave program could be hundreds of millions of dollars in the red within a few years, unless the Legislature acts.
This could mean reduced benefits or increased payments by the employers and employees who fund the program, which lets Washingtonians take paid time off work for serious health issues or to care for a family member or a new child.
The program’s actuary says paid family and medical leave could face a more than $350 million deficit in 2029.
The state sets a premium rate annually for how much employers and employees need to pay into the program. This year, 0.92% of Washington workers’ paychecks go toward it. Next year, that’s projected to increase to 1.13%, though the rate will be finalized at the end of this month.
The problem is that state law caps premiums for the paid leave program at 1.2%. The state is projected to reach that cap in 2027 and stay there. That plateau means the program likely won’t be able to keep up with rising claims for benefits and increased payments as wages grow.
The program has been steadily growing since its launch in 2020. From July 1, 2024, to June 30, over 320,000 applications were submitted for paid leave, up 15% from the previous year, according to a report this month. Over 240,000 Washingtonians received more than $2 billion in total benefits, a year-over-year increase of about $300 million.
Washington’s paid family and medical leave program could be hundreds of millions of dollars in the red within a few years.