Sponsors (15)
The bill makes it easier for states to deny unemployment benefits to people involved in strikes—reducing strike-related costs and business disruptions—but at the cost of greater hardship for striking workers, weaker labor bargaining power, and increased state and federal administrative complexity.
Employers and non-striking workers face fewer disruptions because striking workers who would otherwise extend walkouts may be denied unemployment benefits, reducing incentive for prolonged strikes.
States could reduce unemployment benefit payouts during labor disputes, lowering state program costs and easing fiscal pressure on state budgets and taxpayers.
Workers who participate in or support strikes (and their families) could lose access to weekly unemployment benefits, increasing immediate financial hardship for unemployed and middle-class households.
Workers and unions lose bargaining power because removing access to unemployment benefits during strikes reduces their financial cushion, which could lead to weaker negotiated wages or working conditions over time.
The change risks uneven access and administration across States and reduces federal oversight tied to FUTA approval, creating legal uncertainty and greater administrative burden for states and the Department of Labor.
Based on analysis of 2 sections of legislative text.
Authorizes States to deny unemployment benefits to people out of work due to strikes or labor disputes (excluding lockouts) and repeals a related FUTA provision, effective in two years unless States act sooner.
Introduced July 16, 2025 by Rudy Yakym · Last progress July 16, 2025
Allows States to deny regular weekly unemployment benefits to people who are out of work for any week because they are participating in, supporting, or have a direct interest in a strike or other labor dispute (excluding lockouts). Also removes a related federal provision in the Federal Unemployment Tax Act, with the new rule taking effect two years after enactment unless States adopt changes earlier.