One Big Beautiful Bill—What employers need to know

On July 4, 2025, President Donald Trump signed “One Big Beautiful Bill” into law. This budget reconciliation legislation includes several provisions employers should know about. We’re providing this brief, employer-focused summary for those who don’t want to read the bill’s nearly 900 pages.

Key provisions

Enhanced employer-provided childcare credit. The bill increases the tax credit for employers that provide childcare assistance to $500,000 ($600,000 in the case of eligible small businesses) from the previous $150,000 threshold, helping address the challenges working parents face. The measure is intended to encourage employers to add childcare benefits in an effort to reduce absenteeism and increase retention.

Paid family and medical leave tax credit. The bill extends and enhances the tax credit for employers offering paid family and medical leave. Again, the goal is to encourage employers to provide or expand paid leave benefits, with the aim of promoting families and improving talent attraction and retention.