Sponsor
Frank J. Mrvan
Representative · D-IN
Representative · D-IN
The bill increases worker leverage and prevents taxpayer subsidies for employers who lock out staff, but it also raises compliance, financial, and operational risks for businesses that can slow federal projects, spur legal disputes, and indirectly shift costs onto workers or consumers.
Workers and unions gain stronger leverage and face fewer lock-outs because employers risk losing federal funds and tax benefits when they lock out employees, encouraging return-to-work or negotiation.
Taxpayers are protected from subsidizing employers that engage in lock-outs because affected employers are barred from receiving certain federal funds and tax credits and must repay improperly used funds.
The bill increases fiscal accountability by requiring repayment of federal funds improperly used during lock-outs (back to Jan 1, 2026), strengthening oversight of federally funded programs.
Employers that lose access to federal contracts, grants, or tax benefits during or after lock-outs may suffer revenue shortfalls that disrupt operations, delay or halt federally funded projects, and risk job losses or reduced services in affected communities.
Businesses—especially small firms—face increased compliance, repayment obligations, and litigation risk over disputed lock-out determinations, creating sudden financial strain and uncertainty.
Corporations that incur higher effective tax liabilities or lose tax credits due to disputed lock-out findings may pass increased costs to consumers or cut jobs, raising prices or causing layoffs.
Based on analysis of 3 sections of legislative text.
Prohibits Federal funds to employers during and after lock-outs and denies corporate tax credits to firms that engage in lock-outs, effective in 2026.
Official title: To amend the National Labor Relations Act and the Internal Revenue Code of 1986 to limit access of employers to Federal funds and tax credits while engaged in a lock-out of employees.
Introduced August 31, 2026 by Frank J. Mrvan · Last progress August 31, 2026
Prohibits use of Federal funds by employers during any employee lockout and for an additional post‑lockout period, requires reimbursement for certain violations, and denies corporate tax credits to businesses that engage in lockouts. The restrictions take effect on January 1, 2026, and the tax changes apply to taxable years beginning after December 31, 2025.