A study evaluated the impact of Paid Family Leave (PFL) on reducing adverse childhood experiences (ACEs) related to household challenges in young children in Rhode Island and New York. ACEs are potentially traumatic events that can lead to negative health outcomes. Using data from the National Survey of Children’s Health from 2011 to 2019, researchers compared the incidence of household challenge ACEs in states with PFL to those without it. The study found that implementing PFL in Rhode Island and New York was linked to a significant 4% reduction in caregiver separation and a 2% reduction in caregiver incarceration ACEs. Additionally, there was a notable 4% decrease in the overall proportion of young children experiencing any household challenge ACEs after PFL was adopted. These findings suggest that PFL can play a crucial role in improving the well-being of children and families by mitigating the impact of adverse experiences, which can affect children’s mental health and academic outcomes in the long term. The results underscore the public health benefits of PFL and highlight the need for further research on policies aimed at reducing ACEs.