Striking workers would not pay federal income tax on money received from their union.
Striking workers would no longer pay federal income tax on money they receive from their union during a strike or lockout. This bill would change current tax rules, making these payments tax-free. It would also mean these benefits would not count towards income when calculating eligibility for the Earned Income Tax Credit.
Today, money received from a union during a strike or lockout counts as taxable income. It can also affect eligibility for the Earned Income Tax Credit. If this bill becomes law, these 'qualified strike benefits' would not be taxed by the federal government. They would also not count as earned income for the Earned Income Tax Credit. These changes would take effect for benefits received after December 31, 2026.
HR 8816 · 119th Congress · May 14, 2026 · AI Summary by gemini-2.5-flash · 10/10
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