The legislation would raise the Temporary Disability Insurance and TCI wage replacement rates from the current 60% to 70% starting in January 2027, followed by 75% in January 2028.
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Both chambers of the Rhode Island General Assembly approved Senate President Valarie J. Lawson’s legislation to expand paid family leave through the Temporary Caregiver Insurance, or TCI, program, which now goes to Governor Dan McKee’s desk for consideration.
President Lawson’s legislation (2025-S 0974aa) builds on successful efforts to strengthen TCI during the 2024 legislative session. In 2013, Rhode Island became one of the first states in the nation to offer paid parental leave through the creation of the TCI program, which is funded through payroll deductions. The program also allows individuals to take this time to care for a seriously ill family member. In the years since TCI’s creation, however, Rhode Island’s program has fallen behind those of other states.
The legislation would raise the Temporary Disability Insurance and TCI wage replacement rates from the current 60% to 70% starting in January 2027, followed by 75% in January 2028.
“Rhode Island was once a national leader in providing paid time off for workers to spend with a new child or a sick loved one, but we have fallen behind other states,” said Lawson (D-Dist. 14, East Providence). “This puts our state at a competitive disadvantage when competing for talent, and it is unfair to workers who need that time at critical periods in their lives. A society in which people have the time to bond with their babies and care for their loved ones is a healthier society, in every sense of the word. This proven program is funded not through employers but through a modest assessment on the workers themselves. It is an investment in our workforce and in our children, one that will pay off for generations.”
This expansion would be funded through an increase of the payroll contribution cap from $89,200 to $100,000. There would be no impact to the state budget. The formulary changes depending on usage to keep the fund stable, but under current usage conditions, a worker making up to $89,200 would see no increase in contributions. For a worker making $100,000, the increase would equate to $2.70 a week.
“No one should ever have to choose between their job and their family,” said Rep. Giraldo (D-Dist. 56, Central Falls), who introduced companion legislation in the House. “By increasing the wage reimbursement, we can help ease the burden of those who have to care for loved ones. I know from my own experience as a father of a daughter born prematurely that the gift of time that TCI provides is priceless.”