Bill > S2779

This bill amends the Internal Revenue Code to exclude certain strike benefits from being counted as taxable income. Specifically, the bill creates a new section (Section 139M) that allows workers to receive compensation from their labor union during a strike, lockout, or work stoppage without having to pay federal income tax on those benefits. To qualify, the benefits must be provided by a tax-exempt labor organization (501(c)(5) status) and serve as a replacement for wages lost due to a labor dispute as defined by the National Labor Relations Act or the Railway Labor Act. The bill also updates the Earned Income Tax Credit provisions to recognize these tax-free strike benefits. These changes would take effect for compensation received after December 31, 2025, meaning workers participating in strikes starting in 2026 would be able to receive these tax-free benefits. The goal of the legislation appears to be providing additional financial support to workers during labor disputes by reducing their tax burden on strike-related compensation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2779/all-info