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Summary Provided by Congressional Research Service
New Opportunities for Business Ownership and Self-Sufficiency Act
This bill increases the percentage of individuals who may participate in a Self-Employment Assistance (SEA) program, generally expands eligibility for such programs, and modifies certain SEA program requirements.
As background, an SEA program provides an individual with an SEA allowance, rather than regular unemployment compensation benefits, if such individual is (1) eligible for unemployment compensation benefits and identified as likely to exhaust such benefits, (2) participating in self-employment assistance activities which include entrepreneurial training, business counseling, and technical assistance and are approved by the state, and (3) working full-time on establishing a business and becoming self-employed. Under current law, the number of individuals participating in an SEA program may not exceed 5% of the individuals receiving regular unemployment compensation benefits in the state.
The bill
- increases the percentage of individuals who may participate in a state SEA program to 10%,
- eliminates the requirement that an individual be determined likely to exhaust unemployment compensation benefits (generally expanding individual eligibility for an SEA program), and
- requires individuals to certify (at least weekly) that they are working full-time on establishing a business and becoming self-employed.
Finally, the bill allows individuals to meet the requirement to participate in state-approved self-employment assistance activities if such activities either (1) include entrepreneurial training, business counseling, and technical assistance (permitted under current law); or (2) are performed pursuant to a state-approved business plan and market feasibility study.
Latest available text
1. Short title
This Act may be cited as the "New Opportunities for Business Ownership and Self-Sufficiency Act".
2. Modification of rules governing State administration of self-employment assistance programs
(a) Elimination of requirement that participants are likely to exhaust regular unemployment compensation - Section 3306(t)(3) of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.
(b) Modification of requirement To participate in self-Employment assistance activities - Section 3306(t)(3)(B) of such Code, as redesignated by subsection (a), is amended to read as follows:
(B) are participating in self-employment assistance activities which are approved by the State agency and either—
(i) include entrepreneurial training, business counseling, and technical assistance; or
(ii) are performed pursuant to a business plan and market feasibility study submitted by the individual and approved by the State or an agency designated by the State; and
(c) Weekly certification requirement - Section 3306(t)(3)(C) of such Code, as redesignated by subsection (a), is amended by inserting "and are certifying such activities on at least a weekly basis to an agency designated by the State" before the semicolon at the end.
(d) Adjustment of limitation on number of individuals participating - Section 3306(t)(4) of such Code is amended by striking "5" and inserting "10".
(e) Effective date - The amendments made by this section shall apply beginning on the date that is 2 years after the date of enactment of this Act, except that nothing in this section shall be interpreted to prevent a State from amending its law before the end of the 2-year period beginning on the date of the enactment of this Act.
(f) Issuance of regulations - The Secretary of Labor shall, after public notice and comment and subject to approval by the Office of Management and Budget, adopt regulations to administer this Act.
(g) Issuance of guidance - The Secretary of Labor shall provide guidance to State workforce agencies that includes—
(1) a model list of self-employment assistance activities that fulfill requirements of the program under section 3306(t) of the Internal Revenue Code of 1986; and
(2) best practices for verification of completion of such activities.
February 20, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed