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Bill

Bill

SR 36

Urges Congress to exempt unemployment insurance and certain leave benefits from federal taxation.

2026-2027 Regular Session Introduced by Holly Schepisi

New Jersey urges Congress to exempt unemployment insurance and designated leave benefits from federal income taxation to reduce worker tax burden.

Introduced in the Senate, Referred to Senate Labor Committee
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WeVote Research Nonpartisan
Bill Summary · SR 36

Legislative bill overview

SR 36 is a New Jersey state resolution that urges Congress to pass federal legislation exempting unemployment insurance benefits and certain leave benefits (such as paid family leave and paid medical leave) from federal income taxation. The resolution does not create law itself but rather expresses the state legislature's position on federal tax policy.

Why is this important

This proposal would reduce the tax burden on workers receiving unemployment or leave benefits, potentially increasing their net income during periods of job loss or family/medical absence. Such a change could affect federal revenues and alter the effective value of social safety net programs, with particular impact on lower-income workers who may rely more heavily on these benefits.

Potential points of contention

  • Federal revenue impact: Exempting these benefits from federal taxation would reduce federal tax collection, raising questions about how the revenue loss would be addressed through other means or budget adjustments
  • Scope ambiguity: The resolution's reference to "certain leave benefits" is vague regarding which types qualify (paid family leave, medical leave, sick leave, etc.), potentially leading to implementation disputes
  • Equity concerns: Critics may argue that exempting these benefits is regressive if they primarily benefit certain demographic or income groups, while others may view it as fair relief for workers in financial hardship

Compiled from official sources — confirm details with the bill’s official record.

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