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S. 2779119th CongressIn committeeLatest action Sep 11, 2025Decoded by AI · checked against the record
Official title: Tax Cut for Striking Workers Act of 2025
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
Senate bill S 2779 would make union strike and lockout pay tax-free starting January 1, 2026, while preserving Earned Income Tax Credit eligibility.
50-second read · 4 questions answered below
Senate bill S 2779 would remove strike and lockout payments from taxable income under the federal tax code. The change would apply to payments received on or after January 1, 2026. The bill also ensures that strike pay continues to count as earned income for purposes of the Earned Income Tax Credit.
The bill directly affects union members who go on strike or are locked out by their employer and receive financial support payments from their union. Workers covered under the Railway Labor Act, including railroad and airline employees, may also be affected.
Under current law, union strike and lockout payments are treated as regular taxable income, reducing the take-home value of those payments for workers. Maintaining strike pay as earned income for the Earned Income Tax Credit means workers on strike would not lose access to that credit during the period they are not receiving employer wages.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Finance.