New legislation is expected to be introduced in California around the start of 2025. These changes in US law will have an impact on how families manage their finances and save.
Changes ranging from tax adjustments to child welfare safeguards may have an impact on your personal savings goals. Governor Gavin Newsom and state lawmakers passed legislation addressing financial stability and savings this year.
3 new changes in the law this 2025 that will affect Americans
The expansion of paid family leave and disability benefits is one of the most significant changes that California families will face in 2025. California will increase the salary replacement rate for these benefits from 60-70% to 70-90% beginning January 1, 2025.
Senator Maria Elena Durazo authored Senate Bill 951 (SB 951), which includes this modification. Employees will be able to take more time off to recover or spend time with a newborn without worrying about the financial burden associated with extended vacations.
Because it makes managing funds during a leave of absence easier, it creates a stronger safety net for life events such as illness or childbirth. Furthermore, the new law reduces financial burdens by prohibiting employers from requiring employees to take vacation time before becoming eligible for paid family leave.
Another regulation affecting family savings is one that strengthens protections for child influencers. Because of the rapid growth of social media and online content creation, a large number of children are earning a significant income from platforms such as YouTube and Instagram.
Children and teenagers who upload content online are now protected by California’s Coogan Act provisions, which were originally designed for child actors, thanks to Assembly Bill 1880 and Senate Bill 764.
According to this legislation, parents or guardians must set up a trust with a portion of the money their child earns from their internet presence.
When these kids reach adulthood, they will have access to this money. This regulation ensures that their revenues are carefully managed and provides an important layer of financial stability for families who rely on their children’s online success.
It also protects young influencers from financial exploitation, ensuring their long-term well-being. This rule aims to prevent financial abuse before the child reaches the legal age to manage money on their own by ensuring that a portion of their earnings is saved and safeguarded.
Many people and families are concerned about their medical debt. Medical bills from years ago are causing many people to struggle, but Senate Bill 1061 offers much-needed assistance. Beginning in 2025, consumer credit agencies will be prohibited by law from including medical debt on credit reports.
Historically, medical debt could have a significant impact on a person’s ability to get a loan, rent an apartment, or buy a car. This new law will relieve families of the worry that medical bills will lower their credit ratings.
Families dealing with unforeseen medical situations would benefit most from these changes, which ensure that medical expenses do not unfairly harm their financial records. Instead of having their lives completely upended and turned upside down by medical bills, families can continue to live their lives while paying off debts.
This new legislation will provide families with greater financial security as California enters 2025, including improved paid leave benefits, more robust savings options for child influencers, and protection from medical debt.
While staying current on new legislation is always important, these specific changes are intended to make life easier for families who frequently face financial and personal challenges.
To ensure that your family can take full advantage of the current opportunities and safeguards, you must understand these laws and how they apply to your specific situation.
