Sponsors
The bill channels federal coordination, funding, and outreach to expand worker-owned cooperatives—potentially boosting ownership, job stability, and access in underserved areas—while imposing federal costs, risking diversion of existing small‑business supports, and creating regulatory and eligibility complexities that may unevenly affect businesses and states.
Small-business owners, worker-owners, and entrepreneurs gain expanded, coordinated federal support (technical assistance, outreach, program eligibility, and agency guidance) to form, convert to, and grow worker-owned cooperatives.
Workers in cooperatives (including low-income and underserved workers) gain greater opportunities for ownership, shared governance, job stability, and potential income/wealth-building from broader cooperative promotion and support.
Cooperatives and their member small businesses gain access to a multi-year $60,000,000 program (2026–2036) to provide cooperative-led small-business assistance and intermediary support.
Taxpayers face increased federal costs from running new programs, a Council, outreach/translation, and the $60,000,000 funding authorization, raising the federal budgetary burden.
Existing SBA, CDFI, and other small-business resources could be diverted or crowded out to support cooperative programs, reducing funding and services available to non‑cooperative small businesses and other community priorities.
Some small businesses and federal contractors may incur added compliance, transition, or administrative costs if agencies revise rules or guidance to favor cooperative models.
Based on analysis of 7 sections of legislative text.
Directs federal agencies to promote and support worker-owned cooperatives, creates a coordinating federal Council, and expands cooperative-related program authorities and outreach.
Directs several federal agencies to promote and support worker-owned cooperative businesses by removing regulatory barriers, improving access to capital, providing outreach and training, and coordinating research and technical assistance. Establishes a U.S. Council on Worker Cooperatives within the Department of Labor to develop a federal strategy, coordinate agency actions, report to Congress, and sunset after 10 years; also amends existing small-business and CDFI authorities to expand cooperative-focused programs and funding timelines.
Introduced November 7, 2025 by Ro Khanna · Last progress November 7, 2025