Tax Cut for Striking Workers Act of 2025
- Bill Number
- S. 2779
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-09-11: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-03T17:22:29Z
AI-Generated Summary
Bill Summary: Tax Cut for Striking Workers Act of 2025 (S. 2779)
Purpose
The legislation amends the Internal Revenue Code of 1986 to exclude certain payments known as strike benefits from an individual's taxable gross income.
Key Provisions
- Adds a new section 139M to the tax code, which states that gross income does not include "qualified strike benefits."
- Defines qualified strike benefits as payments from a labor organization (tax-exempt under section 501(c)(5)) to its members that replace lost wages due to a strike, lockout, or work stoppage under the National Labor Relations Act or Railway Labor Act.
- Updates the Earned Income Tax Credit rules to treat the excluded benefits consistently with other nontaxable items.
- Makes the changes effective for compensation received after December 31, 2025.
- Includes a clerical update to the table of sections in the tax code.
Significant Changes to Existing Law
- Strike benefits, previously included in gross income and subject to federal income tax, would now be excluded from taxation.
- The bill references and builds upon amendments from Public Law 119-21 by inserting the new section after section 139L.
Potential Impacts
- Workers receiving strike benefits would retain more of the payments after taxes.
- The Internal Revenue Service would need to update tax forms, guidance, and processing to implement the exclusion.
- No direct effects on international relations are outlined in the bill.
Main Stakeholders Affected
- Labor organizations and their members who receive strike benefits.
- Employers involved in labor disputes.
- The Internal Revenue Service, which would administer the new tax exclusion.
Notable Legal, Constitutional, or Political Implications
- The bill alters tax treatment of income tied to labor disputes without addressing any constitutional issues in the text.
- It could affect the financial dynamics of strikes and lockouts by changing the net value of benefits provided by unions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (10)
Sen. Wyden, Ron [D-OR], Sen. Fetterman, John [D-PA], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Van Hollen, Chris [D-MD], Sen. Blumenthal, Richard [D-CT], Sen. Booker, Cory A. [D-NJ], Sen. Merkley, Jeff [D-OR], Sen. Schatz, Brian [D-HI], Sen. Baldwin, Tammy [D-WI], Sen. Schiff, Adam B. [D-CA]
Recent Actions
- 2025-09-11: Read twice and referred to the Committee on Finance.
- 2025-09-11: Introduced in Senate
Bill Versions
- Tax Cut for Striking Workers Act of 2025 — issued 2025-09-11 — PDF (3 pages)