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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5958 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5958
To direct the heads of certain Federal agencies to develop and support
worker-owned cooperative businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2025
Mr. Khanna introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committees on
Financial Services, and Energy and Commerce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To direct the heads of certain Federal agencies to develop and support
worker-owned cooperative businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Worker Cooperative
Development and Support Act''.
SEC. 2. PROMOTION OF WORKER-OWNED COOPERATIVE BUSINESS BY CERTAIN
AGENCIES.
The head of each covered agency shall--
(1) implement programs and initiatives to support and
expand worker-owned cooperative businesses;
(2) periodically review existing regulations and propose
revisions to such regulations to remove barriers that impede
the formation and expansion of worker-owned cooperative
businesses;
(3) facilitate access to capital for worker-owned
cooperative businesses, including--
(A) exploring innovative financing options; and
(B) using existing programs to support worker-owned
cooperative businesses;
(4) coordinate with the United States Council on Worker
Cooperatives established under section 4;
(5) develop, use, and contribute to the Federal strategy
described in section 4(d)(1);
(6) conduct and support research with respect to--
(A) the economic impact of worker-owned cooperative
businesses;
(B) barriers to growth for worker-owned cooperative
businesses; and
(C) the effectiveness of existing programs that
relate to worker-owned cooperative businesses;
(7) provide education, outreach, and technical assistance
to assist existing businesses to transition to worker-owned
cooperative businesses;
(8) engage with businesses, nonprofit organizations, and
academic institutions to identify best practices to enhance the
use worker-owned cooperative businesses; and
(9) provide relevant training for Federal workers to
integrate worker-owned cooperative businesses into existing
systems of Federal Government.
SEC. 3. EDUCATION AND OUTREACH RELATING TO WORKER-OWNED COOPERATIVE
BUSINESS.
The Administrator of the Small Business Administration shall--
(1) develop educational materials relating to worker-owned
cooperative businesses that are--
(A) accessible online and in print; and
(B) translated into multiple languages; and
(2) implement an outreach program relating to worker-owned
cooperative businesses in communities where English is not the
predominant language.
SEC. 4. ESTABLISHMENT OF THE UNITED STATES COUNCIL ON WORKER
COOPERATIVES.
(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of Labor shall establish the
United States Council on Worker Cooperatives (in this section referred
to as the ``Council'') to coordinate, across the Federal Government,
activities relating to the formation and expansion of worker-owned
cooperative businesses.
(b) Chair.--The Secretary of Labor shall--
(1) serve as the chair of the Council; or
(2) appoint a designee to serve as the chair of the
Council.
(c) Members.--The Council shall be comprised of the following
members:
(1) The Administrator of the Small Business Administration.
(2) The Commissioner of Internal Revenue.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) A representative from the National Economic Council.
(6) The Director of the Domestic Policy Council.
(7) A representative chosen by the Secretary of Agriculture
to represent the Interagency Working Group on Cooperative
Development of the Department of Agriculture, as established
under section 310B(e)(12) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(e)(12)).
(8) Any other members as determined by the Secretary of
Labor.
(d) Responsibilities.--The Council shall--
(1) develop a Federal strategy to incorporate worker-owned
cooperative businesses as a tool for national economic
development;
(2) identify regulatory barriers within the Federal
Government to the formation and expansion of worker-owned
cooperative businesses;
(3) propose solutions to the barriers identified in
paragraph (2) to form and expand worker-owned cooperative
businesses in the United States; and
(4) coordinate--
(A) the availability of data and research relating
to--
(i) barriers to entry for the creation of
worker-owned cooperative businesses; and
(ii) benefits of worker-owned cooperative
businesses;
(B) educational initiatives across Federal agencies
to increase awareness and understanding of the worker-
owned cooperative business model; and
(C) between existing and future initiatives
relating to worker-owned cooperative businesses to
avoid duplication or conflicting objectives.
(e) Report.--Not later than 2 years after the date of enactment of
this section, and each year thereafter, the Council shall submit to the
Congress and publish on a public website a report that includes a
description of--
(1) any progress made by the Council with respect to the
responsibilities described in subsection (d);
(2) policy recommendations relating to the promotion of the
formation and expansion of worker-owned cooperative businesses;
and
(3) the successes, best practices, and challenges that
Federal agencies have in the promotion of the formation and
expansion of worker-owned cooperative businesses and
initiatives.
(f) Sunset.--The Council shall terminate on the date that is 10
years after the date of enactment of this section.
SEC. 5. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM FOR WORKER-
OWNED COOPERATIVE BUSINESS.
Section 7(l) of the Small Business Act (15 U.S.C. 636(l)) is
amended--
(1) in paragraph (1), by striking subparagraph (A) and
inserting the following:
``(A) the term `eligible intermediary' means a
cooperative (as defined in subsection (a)(35)); and'';
and
(2) in paragraph (4)(G)--
(A) by striking ``2011, 2012, and 2013'' and
inserting ``2026 through 2036''; and
(B) in clause (ii), by striking ``$20,000,000'' and
inserting ``$60,000,000''.
SEC. 6. CDFI EDUCATION AND GUIDANCE ABOUT THE VALUE OF WORKER-OWNED
COOPERATIVE BUSINESS.
Section 108(b)(1) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4707(b)(1)) is amended--
(1) in subparagraph (E)(ii)(II), by striking ``and'' at the
end;
(2) by redesignating subparagraph (F) as subparagraph (G);
and
(3) by inserting after subparagraph (E) the following:
``(F) the provision of education and facilitation
of services to assist in the establishment and
management of worker-owned cooperative businesses;
and''.
SEC. 7. DEFINITIONS.
In this Act:
(1) Covered agency.--The term ``covered agency'' means the
following:
(A) The Small Business Administration.
(B) The Internal Revenue Service.
(C) The Department of the Treasury.
(D) The Department of Commerce.
(E) The Department of Agriculture.
(F) The Department of Labor.
(2) Worker-owned cooperative business.--The term ``worker-
owned cooperative business'' means--
(A) any entity that is--
(i) organized under a State law relating to
worker cooperatives; and
(ii) majority owned or controlled by
employees of such entity; or
(B) an ``eligible worker-owned cooperative'', as
such term is defined in section 1042(c) of the Internal
Revenue Code of 1986.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Small Business, and in addition to the Committees on Financial Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Small Business, and in addition to the Committees on Financial Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Small Business, and in addition to the Committees on Financial Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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