From Amarillo to McAllen, all Texans value our families and our freedom. Yet, most working Texans do not have the financial freedom or the choice to stay home and take care of their newborn baby. The Texas Family Act is working parents’ solution to this statewide problem. The program will provide wage replacement to working parents during the first 4 to 8 weeks after birth so that parents can afford to stay home and take care of their newborn baby or recently-adopted child. The Texas Family Act is a program by working parents, for working parents.
Take Action
- Call your Texas elected officials today and tell them that you support the Texas Family Act (HB 3059). You can find your elected officials’ contact information here.
- Sign up for email advocacy alerts.
- Share your story. It is important that we hear from parents who have experienced a wage gap at the birth or adoption of a child.
Barriers to Financial Freedom for New Working Parents
Gone are the days where one income is enough to pay the bills and raise a family –- the majority of Texas’ families need two working parents. Texas made progress in 2023 by passing paid parental leave for some state workers. Still, best estimates based on Bureau of Labor Statistics show that approximately 75% of working parents in Texas do not have access to paid leave when their child is born. That means most working parents must return to work immediately after the birth of a baby in order to pay their bills. If working parents stay home, they face financial hardship due to lost wages.
Additionally, child care in Texas is unaffordable and inconsistent. Texas families in densely-populated counties will need to pay at least $11,000 annually for infant care. Rural families face huge hurdles in finding affordable child care because they are more likely to live in a child care desert. It is also important to remember that most licensed child care providers will not accept infants under 6 weeks old, leaving working parents and their newborns with even less affordable options.
The Texas Family Act Works for Working Parents
The Texas Family Act (HB 3059) guarantees families’ economic security by replacing working parents’ wages for 4 to 8 weeks, beginning at the birth or adoption of a child. The act designates a reserved fund called the Texas Family Fund. Employers and employees will make payroll contributions to the fund at 0.15% of wages. The employer has the option to pay 0.15% of wages or split the contribution with their employee. That means the employer and employee each pay .075% of total wages. The contributions are pooled to provide full time employees the 4 to 8 weeks of wage replacement at the birth or adoption of a child. Mothers who give birth will receive 8 weeks paid leave, and fathers and mothers adopting a child will receive 4 weeks paid leave. A parent’s weekly wage replacement cannot exceed the statewide average salary. For reference, the 2023 Bureau of Labor Statistics Texas average annual salary is $1,178 weekly or $61,200 annually.
Avoiding Profit-Driven Protection: The Texas Family Fund is Publicly Administered
Many of us have experienced frustration and financial hardship when private insurance companies increase our insurance premiums or deny a claim. According to the Texas Association of Business survey, 85% of Texas employers believe health care costs are increasing at an unsustainable rate. Texas-based health insurance companies can sell paid parental leave coverage products to employers, but as of 2025 only two insurers have signed up to offer the product and it is unknown how many employers have purchased a plan.
The Texas Workforce Commission will administer the Texas Family Fund. This way, working parents are protected from profit-driven insurance companies that make private health insurance unaffordable for most.