Federal funds cut off for employers who lock out workers
H.R. 10194 — PRO–WORK Act · Filed by Frank Mrvan (D-IN) · Introduced Aug 31, 2026 · Referred to committee
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What it does
This bill prohibits employers engaged in a lockout from receiving federal funds or tax credits. During a lockout and for an equal period afterward (or one year if the employer has locked out before), the employer cannot access federal money or most tax benefits. Employers must also repay any federal funds they received during lockouts that occurred after January 1, 2026. Workers benefit by reducing employers' financial incentive to lock them out; employers lose access to federal support during labor disputes.
Why we flagged it
The bill's core mechanism is to impose financial penalties on employers who engage in lockouts by denying them federal funds and tax credits. This is a direct labor-protection measure designed to deter lockout tactics and strengthen worker bargaining power.
What the text implies
- The retroactive reimbursement clause (subsection b) requires employers to repay federal funds received during lockouts back to January 1, 2026, even if the lockout occurred before the bill's enactment — this creates a lookback liability for past conduct.
- The definition of 'lock-out period' references the NLRA but does not specify whether it includes partial lockouts, sector-specific lockouts, or lockouts of subsets of the workforce — implementation may turn on NLRB interpretation.
The full analysis lists 4 implications of this text.
Who stands to gain
workers and labor unions (through reduced employer leverage during disputes)