SHRM ADVOCACY ALERT
Urge Congress to Support Key Tax Policies to Strengthen America’s Workforce and Economy
SHRM encourages you to contact your members of Congress in support of key workplace provisions included in the current budget reconciliation package. These measures would provide employers with essential tools to attract talent, strengthen the workforce, and enhance employee well-being.
In a recent letter to congressional leadership, Emily M. Dickens, SHRM’s Chief of Staff and Head of Government Affairs, emphasized the significance of these policies in advancing both workforce and economic goals.
As an HR professional, your voice is critical to ensuring that public policy reflects the realities of today’s workplace. Take action today to help shape policies that support employees, empower employers, and drive workforce success.
SHRM supports the inclusion of the following four provisions in the final package:
- Make Employer Student Loan Repayment Assistance Permanent (Section 127)
- What It Does: Makes permanent the tax-free benefit allowing employers to contribute up to $5,250 annually toward employees’ student loan repayment, with future adjustments for inflation.
- Why It Matters: This helps employees manage student debt while supporting talent retention and financial wellness.
- Expand Pell Grants and Workforce-Aligned Savings Options
- What It Does: Increases Pell Grant funding and introduces a new Workforce Pell program starting July 1, 2026, for individuals enrolled in eligible workforce training programs.
- Why It Matters: These changes help workers reskill or upskill to meet the demands of high-skill, high-wage jobs.
- Enhance the Paid Family and Medical Leave Tax Credit
- What It Does: Permanently extends the tax credit and expands access by:
- Allowing claims for paid family leave (PFL) insurance premiums
- Making the credit available in all states
- Reducing the required employee tenure from one year to six months
- Why It Matters: Expanding this credit empowers more employers—especially small and mid-sized businesses—to offer paid leave, improving retention and employee well-being.
- What It Does: Permanently extends the tax credit and expands access by:
- Modernize 529 Education Savings Plans
- What It Does: Expands eligible uses of 529 plans to include K–12 education and workforce training programs.
- Why It Matters: Increases flexibility for families to save for education at all life stages.
SHRM is actively working with policymakers to advance these priorities. If you’d like to get involved, contact the SHRM Government Affairs team at governmentaffairs@shrm.org.