New legislation is scheduled to be introduced in California around the start of 2025. These changes in US legislation will have an impact on how families manage their finances and save.
Changes ranging from tax modifications to child welfare measures may have an impact on your personal savings goals. Governor Gavin Newsom and state lawmakers passed measures addressing financial stability and savings this year.
3 new changes in the law this 2025 that will affect Americans
The increase 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 amendment. Employees will be able to take more time off to recover or spend time with a newborn without worrying about the financial strain associated with extended vacations.
Because it makes managing assets 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 firms from requiring employees to use vacation time before being eligible for paid family leave.
Another law affecting family savings is one that strengthens protections for child influencers. Because of the rapid rise of social media and online content creation, a big number of children are making a significant income via platforms such as YouTube and Instagram.
Children and teenagers who submit content online are now protected under California’s Coogan Act protections, which were originally designed for child actors, owing to Assembly Bill 1880 and Senate Bill 764.
According to this regulation, parents or guardians must set up a trust with a percentage 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 against financial exploitation, ensuring their long-term well-being. This law aims to prevent financial exploitation 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 persons and families are concerned about their medical debt. Medical expenses from years ago are causing many individuals 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 may have a considerable impact on a person’s ability to receive a loan, rent an apartment, or buy a car. This new law will relieve families of the anxiety that medical bills will harm their credit ratings.
Families dealing with unforeseen medical problems would benefit most from these reforms, which ensure that medical bills do not unfairly affect 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 law will provide families with better financial stability as California enters 2025, including increased paid leave benefits, more comprehensive savings choices for child influencers, and protection from medical debt.
While being current on new legislation is always important, these specific reforms are intended to make life easier for families that frequently confront financial and personal challenges. To ensure that your family can take full advantage of the current possibilities and precautions, you must understand these rules and how they apply to your own situation.
