Tax Cut for Striking Workers Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2779 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 2779

 To amend the Internal Revenue Code of 1986 to exclude strike benefits 
                           from gross income.


_______________________________________________________________________


                   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.

    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 ``Tax Cut for Striking Workers Act of 
2025''.

SEC. 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:

``SEC. 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.
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