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119-hr-8816119th CongressWALLET

Tax Cut for Striking Workers Act of 2026

Sponsored By: Representative Horsford, Steven [D-NV-4]

Introduced

Summary

Excludes qualified union strike-replacement payments from taxable income. This bill would create Section 139M to define when payments from a labor organization count as tax-free replacement pay and would update Earned Income Tax Credit rules to reflect that exclusion.

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  • Striking workers and union members: Replacement pay provided by a labor organization described in 501(c)(5) would not count as gross income when it replaces wages lost to a strike, lockout, or covered work stoppage.
  • Low-income workers and EITC recipients: The Earned Income Tax Credit rules would be adjusted to account for the new exclusion so those benefits are treated consistently in EITC calculations.
  • Labor organizations: Unions that qualify under section 501(c)(5) could fund replacement payments that receive tax-exempt treatment for their members.
  • Timing: The change would apply only to compensation received after December 31, 2026.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax-free union strike pay

You would be able to exclude certain replacement strike payments from your taxable income. Payments must come from a tax-exempt labor union (501(c)(5)) and go to a union member. The payment must replace wages lost to a strike, lockout, or covered railroad work stoppage. This would apply to payments received after December 31, 2026. The bill would also change Earned Income Tax Credit rules so excluded strike pay is treated correctly in EITC calculations.

Sponsors & CoSponsors

Sponsor

Horsford, Steven [D-NV-4]

NV • D

Cosponsors

  • Rep. Kamlager-Dove, Sydney [D-CA-37]

    CA • D

    Sponsored 5/14/2026

  • Rep. Titus, Dina [D-NV-1]

    NV • D

    Sponsored 5/14/2026

  • Rep. Waters, Maxine [D-CA-43]

    CA • D

    Sponsored 8/3/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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