Maryland labor department to delay Family and Medical Leave insurance program
BALTIMORE -- The Maryland Department of Labor is proposing to delay the implementation of the state's Family and Medical Leave Insurance (FAMLI) program, amid a push from the Trump administration to reduce the size of the Federal Workforce, according to an announcement.
"Recent sweeping, unprecedented changes at the federal level have given rise to a high degree of instability and uncertainty for Maryland employers and workers. Hundreds of thousands of Marylanders are employed in civilian positions with the federal government and are facing threats of severe workforce reductions," the department said in a statement.
What is the FAMLI program?
The Family and Medical Leave Insurance (FAMLI) program, which is set to launch in Maryland on July 1, 2026, will provide job protection to workers who need to take time away from work while they care for themselves or a family member, and still be paid up to $1000 a week for up to 12 weeks, according to the FAMLI website.
Under the program, employers and workers will make contributions to a state-administered fund.
Employers can opt to participate in the state program or apply to use their own commercial or self-insured plans. Benefits will be paid either through the state fund or approved private plans, providing workers with a portion of their salary during leave periods.
Department of Labor proposes a delayed start
Under the proposed timeline, payroll deductions would begin January 1, 2027, with benefits becoming available January 1, 2028. The delay comes as hundreds of thousands of Maryland's federal civilian employees face potential workforce reductions, while approximately 225,000 jobs supported by federal contracts are impacted by funding freezes and tariffs, according to the department.
"State agencies like MD Labor are laser-focused on supporting Marylanders as we all respond in real-time to the cascading impacts of federal decisions," Labor Secretary Portia Wu said.
Federal funding freeze impact
Since his inauguration, President Trump has made several efforts to reduce the size of the federal workforce.
Mr. Trump has described the federal government as "bloated" and filled with "people that are unnecessary," CBS News reported.
In January, the Trump administration issued a directive ordering a spending freeze on federal assistance. The decision sparked an outcry from Maryland lawmakers, who said it placed crucial programs in jeopardy and left many.
Maryland Attorney General Brown joined 22 states in a lawsuit over the order.
Later, the directive was temporarily blocked by federal judge John McConnell of Rhode Island, who granted the request for a temporary restraining order sought by the Democrat-led states, which argued that the actions from the Office of Management and Budget violated federal law and the Constitution.
While the administration rescinded the executive order, McConnell on Monday said the Trump administration still had not complied, and that the 22 states continued to be denied access to federal funds.
On Thursday, another federal judge ordered the Trump administration to temporarily restore federal funding for foreign assistance programs.
On the same day, the Trump administration ordered federal agencies to lay off nearly all probationary employees who had not yet gained civil service protection. The order came from the Office of Personnel Management, which acts as a human resources department for the federal government.
