S. 2779

119 S2779 IS: Tax Cut for Striking Workers Act of 2025
 U.S. Senate
 2025-09-11
 text/xml
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  II
  119th CONGRESS
  1st Session
  S. 2779
  IN THE SENATE OF THE UNITED STATES
  September 11, 2025
  Mr. Gallego  (for himself,  Mr. Wyden ,  Mr.
  Fetterman ,  Mrs. Gillibrand ,
  Mr. Van Hollen ,  Mr. Blumenthal ,  Mr. Booker ,
  Mr. Merkley ,  Mr.
  Schatz , and  Ms. Baldwin )
  introduced the following bill; which was read twice and referred to the
  Committee on
  Finance
  A BILL
To amend the Internal Revenue Code of 1986 to exclude strike benefits from
  gross income.
1.
Short title
This Act may be cited as the   Tax Cut for Striking Workers Act of 2025  .
2.
Strike benefits
(a)
In general
Part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986, as amended by  Public Law 119–21 , is amended by inserting after section 139L the following new section:
139M.
Compensation for lost wages relating to a strike, lockout, or work
  stoppage
(a)
In general
In the case of an individual, gross income shall not include qualified strike benefits.
(b)
Qualified strike benefits
For purposes of this section, the term  qualified strike benefits  means compensation provided by a labor organization described in section 501(c)(5) and exempt from tax under section 501(a) to a member of such organization if such compensation is provided as a replacement, in whole or in part, for compensation not received by such member from such member’s employer as the result of a strike or lockout arising from a labor dispute (as defined in section 2 of the National Labor Relations Act), or a work stoppage under the Railway Labor Act.
  .
(b)
Treatment under earned income tax credit
 Section 32(c)(2)(B)(vi)  of the Internal Revenue Code of 1986 is amended by inserting  or 139M  after  by reason of section 112 .
(c)
Clerical amendment
The table of sections for part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986, as amended by  Public Law 119–21 , is amended by inserting after the item relating to section 139L the following new item:
Sec.
  139M. Compensation for lost wages relating to a strike, lockout, or work
  stoppage.
  .
(d)
Effective date
The amendments made by this section shall apply to compensation received after December 31, 2025.