New legislation is expected to be filed in California around the beginning of 2025. The way families handle their money and savings will be influenced by these changes in US law.
Changes ranging from tax-related adjustments to child welfare safeguards may affect your individual savings objectives.
Legislation addressing financial stability and savings is one of the many pieces of legislation enacted into law this year by Governor Gavin Newsom and state lawmakers.
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 biggest changes that California families will have to deal with in 2025. California will raise these benefits’ salary replacement rate from 60–70% to 70–90% on January 1, 2025. Senator Maria Elena Durazo wrote Senate Bill 951 (SB 951), which includes this modification. It will enable employees to take more time off to recuperate or spend time with a newborn without having to worry about the financial burden that comes with prolonged vacations.
Because it makes managing funds during a leave of absence easier, this results in a greater safety net for life events like illness or delivery. Furthermore, the new law eases the financial strain by forbidding employers from asking workers to spend vacation time before becoming eligible for paid family leave. Another regulation that affects family savings is the one that increases protections for child influencers. Due to the quick growth of social media and the production of material online, a large number of kids are earning a substantial income from sites like YouTube and Instagram.
Children and teenagers who upload content online are now covered by California’s Coogan Act provisions, which were first created for child actors, thanks to Assembly Bill 1880 and Senate Bill 764. According to this legislation, parents or guardians must create a trust with a portion of the money their child makes from their internet presence. This cash will be available to these children when they grow up. This regulation guarantees that their revenues are handled carefully and adds a crucial layer of financial stability for families who depend on their kids’ success online.
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It also provides safety for the future well-being of young influencers by shielding them from any financial exploitation. This rule attempts to stop financial abuse before the youngster reaches the legal age to handle money on their own by guaranteeing that a piece of their earnings is preserved and safeguarded. A major worry for a lot of people and families is medical debt. Medical bills from years ago are causing many people to struggle, but Senate Bill 1061 provides much-needed relief. Under this law, consumer credit agencies will not be allowed to list medical debt on credit reports beginning in 2025.
In the past, medical debt might significantly affect a person’s ability to get a loan, rent an apartment, or purchase a vehicle. Families won’t have to worry about medical bills lowering their credit ratings because of this new law.
Families dealing with unforeseen medical situations would particularly benefit from these changes, which make sure that medical expenses won’t unjustly harm their financial records. Instead of having their lives utterly upended and flipped upside down due to medical bills, families can carry on with their lives while making debt payments.
Through improved paid leave benefits, more robust savings options for child influencers, or protection from medical debt, this new legislation will give families greater financial security as California enters 2025. While keeping abreast of new legislation is always vital, these specific changes are meant to make life easier for families that frequently face both financial and personal difficulties.
To make sure that your family can benefit fully from the opportunities and safeguards that are currently available, it will be essential to comprehend these laws and how they relate to your particular circumstances.
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