New Opportunities for Business Ownership and Self-Sufficiency Act
- Bill Number
- H.R. 6431
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Passed House
- Latest Action
- 2026-04-28: Received in the Senate and Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-11T23:26:41Z
AI-Generated Summary
New Opportunities for Business Ownership and Self-Sufficiency Act (H.R. 6431)
Purpose
This legislation amends the Internal Revenue Code of 1986 to expand access to self-employment assistance programs (SEAPs), which allow certain unemployment insurance (UI) claimants to receive benefits while starting their own businesses instead of searching for traditional jobs. The goal is to promote entrepreneurship and self-sufficiency among the unemployed.
Key Provisions
- Eliminates eligibility barrier: Removes the requirement that participants must be likely to exhaust their regular UI benefits.
- Updates activity requirements: Participants must engage in state-approved self-employment activities, such as:
- Entrepreneurial training, business counseling, and technical assistance; or
- Work under an approved business plan and market feasibility study.
- Adds weekly reporting: Participants must certify their activities at least weekly to a state-designated agency.
- Increases participation cap: Raises the limit on SEAP participants from 5% to 10% of a state's total UI claimants in a year.
- Implementation timeline: Changes apply 2 years after enactment, but states may update their laws sooner.
- Federal support:
- Secretary of Labor must issue regulations (after public input and Office of Management and Budget approval).
- Secretary must provide guidance, including a model list of qualifying activities and best practices for verification.
Significant Changes to Existing Law
- Section 3306(t) of the Internal Revenue Code is revised:
- Drops the "likely to exhaust benefits" test (strikes former subparagraph (B)).
- Redefines required self-employment activities to be more flexible.
- Mandates weekly certifications (new language added).
- Doubles the annual participation limit from 5% to 10%.
- These updates make SEAPs easier to join and administer while adding accountability through reporting.
Potential Impacts
- On citizens: More unemployed workers (especially those not at risk of exhausting benefits) can pursue self-employment, potentially leading to new businesses and reduced long-term UI reliance.
- On government agencies: States gain flexibility to expand programs but must handle more participants and weekly verifications; Department of Labor (DOL) takes on rulemaking and guidance roles.
- Fiscal effects: Could reduce UI payouts by shifting claimants to self-employment, but may strain state administrative resources.
- No direct impact on international relations.
Main Stakeholders
- Unemployed individuals: Primary beneficiaries, with broader access to entrepreneurial support.
- State workforce and UI agencies: Responsible for program administration, approvals, and verifications.
- Department of Labor: Issues regulations and guidance.
- Small business aspirants: Indirectly supported through training and planning resources.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns federal tax code (which funds UI via employer taxes) with pro-entrepreneurship policies; requires states to conform their laws for full participation. Effective date allows preparation time.
- Constitutional: No apparent issues; operates within Congress's taxing and spending powers under Article I.
- Political: Encourages self-reliance over traditional job searches, potentially appealing across ideologies by reducing welfare dependency while boosting small business formation. Passed House in 2026; referred to Senate Finance Committee.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Rep. Landsman, Greg [D-OH-1], Rep. Miller, Max L. [R-OH-7], Rep. Yakym, Rudy [R-IN-2], Rep. Feenstra, Randy [R-IA-4], Rep. Moran, Nathaniel [R-TX-1], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2026-04-28: Received in the Senate and Read twice and referred to the Committee on Finance.
- 2026-04-27: Motion to reconsider laid on the table Agreed to without objection.
- 2026-04-27: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3114)
- 2026-04-27: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3114)
- 2026-04-27: DEBATE - The House proceeded with forty minutes of debate on H.R. 6431.
- 2026-04-27: Considered under suspension of the rules. (consideration: CR H3114-3115)
- 2026-04-27: Mr. Carey moved to suspend the rules and pass the bill, as amended.
- 2026-02-20: Placed on the Union Calendar, Calendar No. 435.
- 2026-02-20: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-509.
- 2026-02-20: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-509.
- 2026-01-14: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 41 - 0.
- 2026-01-14: Committee Consideration and Mark-up Session Held
- 2025-12-04: Referred to the House Committee on Ways and Means.
- 2025-12-04: Introduced in House
- 2025-12-04: Introduced in House
Bill Versions
- New Opportunities for Business Ownership and Self-Sufficiency Act — issued 2026-04-27 — PDF (6 pages)
- New Opportunities for Business Ownership and Self-Sufficiency Act — issued 2025-12-04 — PDF (3 pages)
- New Opportunities for Business Ownership and Self-Sufficiency Act — issued 2026-04-28 — PDF (4 pages)
- New Opportunities for Business Ownership and Self-Sufficiency Act — issued 2026-02-20 — PDF (6 pages)