Federal government backs worker ownership as economic development tool

What it does

This bill directs federal agencies (SBA, IRS, Treasury, Commerce, Agriculture, Labor) to actively promote and support worker-owned cooperative businesses—companies where employees own and control the majority stake. It establishes a federal council to coordinate these efforts, removes regulatory barriers, facilitates access to capital, provides education and technical assistance, and funds a $60 million lending pilot program through 2036 to help businesses transition to worker ownership.

Why we flagged it

The bill's core function is to establish federal infrastructure—agencies, councils, capital programs, and education—specifically designed to increase the formation and expansion of worker-owned cooperative businesses as an economic development tool.

What the text implies

• The bill creates a permanent federal council (10-year sunset, but renewable) that may shift how federal agencies evaluate business models and economic development priorities, potentially favoring cooperative structures in procurement, lending, and technical assistance decisions.
• By amending the Small Business Act and CDFI regulations, the bill integrates worker cooperatives into existing federal lending and community development infrastructure, which may gradually increase capital availability for cooperative formation relative to traditional business structures.
• The requirement that agencies 'periodically review existing regulations and propose revisions' to remove barriers could trigger regulatory changes across tax, labor, and corporate law without explicit congressional authorization for each change—delegating significant policy-making to agency discretion.

Who it affects

Ordinary workers gain potential pathways to business ownership, wealth-building, and democratic control over their workplaces. The bill expands economic opportunity and worker agency without imposing costs on the general public; it is funded through existing federal programs and a dedicated pilot appropriation.

Who stands to gain

• worker-owned cooperative businesses
• community development financial institutions (CDFIs)
• small business intermediaries specializing in cooperative lending

Named in the bill

Small Business Administration (SBA), Internal Revenue Service (IRS), Department of the Treasury, Department of Commerce, Department of Agriculture, Department of Labor, US Council on Worker Cooperatives, National Economic Council, Domestic Policy Council, Interagency Working Group on Cooperative Development, Community Development Financial Institutions (CDFIs), Internal Revenue Code Section 1042 — and 2 more

Where it stands

• Nov 7, 2025 — Introduced · Congress.gov: “Introduced in House”
• Nov 7, 2025 — Referred to House Committee on Energy and Commerce and House Committee on Financial Services · Congress.gov: “Referred to the Committee on Small Business, and in addition to the Committees on Financial Services, and…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.