Strike pay would become tax-free income under Senate bill S 2779
In committeeS. 2779Latest action
Sponsor: Ruben Gallego · Senator · AZ
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Official title: Tax Cut for Striking Workers Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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Senate bill S 2779 would make union strike and lockout pay tax-free starting January 1, 2026, while preserving Earned Income eligibility.
50-second read · 4 questions answered below
What does this do?
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 .
Who does it affect?
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.
Why does it matter?
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 means workers on strike would not lose access to that credit during the period they are not receiving employer wages.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedSep 11, 2025
- Senate committeeYou are here · Sep 11, 2025
- Senate vote
- House
- The president's desk
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.