The Interstate Paid Leave Action Network Act of 2025 (I-PLAN Act) would create a national framework to harmonize and streamline state paid family and medical leave programs and coordinate employer-provided paid leave. It establishes the Interstate Paid Leave Action Network (I-PLAN), led with state participation, and partners with a national intermediary (a single national NGO) to develop an interstate agreement (I-PLAN Agreement) that standardizes policy and administration across participating states. The goal is to simplify cross-state leave administration, reduce duplicative rules, and enable more efficient benefit delivery for employees, states, and employers. The bill also provides federal funding to support the national intermediary and state conforming and implementation grants, with oversight by the Secretary of Labor. In short, the bill aims to create a unified, transparent, and interoperable system for paid leave across states, including a roadmap and measurable targets, while allowing states to retain control over their programs and encouraging employer plans that meet a common standard. It envisions robust data sharing, standardized definitions, a common claims-processing framework, and a public-facing interstate agreement to improve clarity for workers and employers who operate across state lines.
Key Points
- 1Establishment of I-PLAN and a nationwide interstate agreement
- 2- Creates the Interstate Paid Leave Action Network (I-PLAN) to develop and update an interstate agreement that standardizes policy and administration for paid leave across participating states.
- 3- Requires a public, evolving I-PLAN Agreement with uniform definitions and processes to facilitate cross-state understanding and compliance.
- 4State participation, governance, and roadmap
- 5- Each participating state designates a State focal to lead implementation, communicate with stakeholders, and participate in I-PLAN activities.
- 6- I-PLAN must meet at least three times per year and develop an annual roadmap with measurable success metrics, including how to implement the interstate agreement.
- 7National intermediary role and funding
- 8- Authorizes the Secretary of Labor to award a grant to one national intermediary to support I-PLAN activities (granted through the Employment and Training Administration).
- 9- The intermediary must use funds for meetings, annual reports comparing state programs, outreach, and building a standardized, interoperable technology system for wages and interstate claims, among other duties. It is subject to annual compliance reviews.
- 10Grants to states (conforming and implementation)
- 11- Provides two types of state grants: conforming grants and implementation grants, each with minimums of $1.5 million and maximums of $8 million, allocated based on relative state employment levels.
- 12- States must have a State focal and participate in I-PLAN in good faith; failure to participate in good faith can lead to withholding of grant funds, with potential restoration if good faith participation resumes.
- 13- Funds may be used to cover administrative costs, technology, training, and to support small businesses in affording or administering employer-paid leave, among other uses.
- 14Authorization of appropriations and oversight
- 15- Allocates up to $10 million per year (FY 2026-2028) for the national intermediary grant, and up to $40 million per year (FY 2026-2028) for conforming and implementation grants.
- 16- The Secretary conducts annual oversight and evaluation of the national intermediary and state programs, with regular performance reporting.