First-Year Foundation

12 Month Paid Family Leave

The first year of a child’s life is the most important year they will ever have.
It is when bonds form, brains develop, and families become whole.

But in America today, millions of parents are forced back to work just weeks after birth — not because they want to, but because they can’t afford not to.

No parent should have to choose between a paycheck and their newborn child.

The First-Year Foundation guarantees every American family 12 months of paid leave to be shared between both parents after the birth or adoption of a child.

This means:

• Time for mothers to recover and heal

• Time for fathers to bond and support

• Time for babies to grow in stable, loving care

• Time for families to begin without financial stress

Strong families are the foundation of a strong nation.
When parents can be present in the first year, children are healthier, parents are more secure, and society is stronger.

Every child deserves a strong start.
Every parent deserves time to care.

The First-Year Foundation makes that possible.

How It Works

The First-Year Foundation is delivered through a proven American model:
shared federal-state social insurance.

States administer benefits through their existing Disability Insurance (DI) or Paid Family Leave programs, while federal funding guarantees that every family nationwide receives 12 months of paid leave.

Parents receive wage replacement through the same systems already used for disability or family leave benefits in many states today.

Benefits include:

• Up to 12 months paid leave after birth or adoption

• Leave shareable between both parents

• Wage replacement through state insurance systems

• Job protection aligned with federal leave law

• Coverage for employees, self-employed, and gig workers

This approach builds on systems already working across the country and avoids creating a new federal bureaucracy.

Cost & Funding

The First-Year Foundation is funded through a balanced, shared contribution between states and the federal government.

States fund approximately half of benefits through modest increases to their payroll contributions into Disability Insurance or Paid Family Leave trust funds.

The federal government funds the remaining half by restoring fairness to the Social Security payroll tax.

Today, Social Security taxes apply only to wages below an annual cap. Income earned above that level is not taxed for Social Security. This means many high-income earners stop contributing partway through the year, while working families pay on every paycheck.

The First-Year Foundation raises the Social Security payroll tax cap to $500,000, ensuring high earners contribute fairly while protecting middle-class workers.

This approach:

• Fully funds the federal share of paid leave

• Avoids payroll tax increases on most workers

• Strengthens Social Security finances

• Uses existing social insurance systems

• Provides long-term funding stability

The program is projected to cost approximately $180–220 billion annually when fully implemented, split evenly between states and the federal government.

Why It Matters

Paid family leave produces measurable national benefits:

• Healthier infants and mothers

• Higher workforce participation for parents

• Stronger early childhood development

• Increased lifetime earnings for children

• Greater family economic stability

Americans already pool risk through Social Security and disability insurance.
The First-Year Foundation extends that same principle to the most important year in a child’s life.

Every child deserves a strong start.
Every parent deserves time to care.

The First-Year Foundation builds the foundation for America’s future.