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119-hr-5958119th CongressWALLET

National Worker Cooperative Development and Support Act

Sponsored By: Representative Khanna, Ro [D-CA-17]

Introduced

Summary

Federal support for worker-owned cooperatives. This bill would create a cross-agency structure to promote, educate about, and expand financing for worker-owned businesses, plus targeted outreach to non‑English communities.

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  • Workers: It would help employees form or buy businesses by promoting worker-owned cooperatives and funding education and technical assistance. Multilingual materials aim to reach linguistically non‑dominant communities.
  • Small businesses and cooperatives: The Small Business Administration would run a new intermediary lending pilot and broaden which organizations can act as intermediaries, raise a program funding threshold to $60.0 million, and extend eligible years to 2026–2036.
  • Community lenders and CDFIs: Community Development Financial Institutions would get a new directive to educate and help establish and manage worker-owned cooperatives.
  • Federal agencies and coordination: A United States Council on Worker Cooperatives inside the Department of Labor would coordinate covered agencies, identify regulatory barriers, publish reports and a public website within two years, and sunset after ten years.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

More financing help for worker co-ops

If enacted, worker cooperatives could join the SBA’s intermediary lending pilot as eligible lenders. The program cap would rise from $20,000,000 to $60,000,000. The pilot would run from 2026 through 2036. Community Development Financial Institutions would be guided to offer education and services to help start and manage worker co-ops. This could expand loan access and training for cooperative small businesses.

Agencies must support worker cooperatives

Covered federal agencies would be required to run programs that support worker co-ops. They would review rules to remove barriers and help connect co-ops to capital. Agencies would provide research, training, outreach, and technical help, including for businesses that want to convert to co-ops. They would coordinate with the new Council and follow a federal strategy. These requirements would start upon enactment.

National council for worker co-ops

The Labor Department would set up a United States Council on Worker Cooperatives within 180 days. It would include leaders from SBA, IRS, Treasury, Commerce, Agriculture, and the White House. The Council would build a federal strategy, fix regulatory barriers, and coordinate research and education. It would publish a report to Congress and a public website within 2 years, then each year. The Council would end 10 years after enactment.

SBA multilingual help for worker co-ops

The SBA would create print and online materials about worker cooperatives. Materials would be translated into multiple languages. The SBA would run outreach in communities where English is not the main language. This could make it easier to start or convert to a worker co-op.

Defines covered agencies and co-ops

The bill would define which agencies are covered: SBA, IRS, Treasury, Commerce, Agriculture, and Labor. It would define a worker-owned cooperative as a business mostly owned or controlled by employees under state law, or an eligible worker cooperative under federal tax law. These definitions would set who must act and which businesses qualify for the bill’s support. The definitions would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Khanna, Ro [D-CA-17]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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