Right now, states can run Self-Employment Assistance programs that let unemployed workers collect their unemployment benefits while starting a small business instead of job-hunting — but only if they're likely to run out of regular benefits, and only up to 5% of the unemployed population can join. This bill removes the "likely to exhaust" gate and doubles the cap to 10%, opening the program to roughly twice as many people. Participants would have to either complete entrepreneurial training and business counseling or submit an approved business plan with a market feasibility study, and certify their activities weekly to a state-designated agency. The Labor Department would write the rules and issue a model list of qualifying activities. Changes take effect two years after enactment, though states can update their laws sooner.
Average Household Impact
- Self-Employment Assistance access — Eligibility opened by removing the "likely to exhaust benefits" gate
- Program participation cap — Raised from 5% to 10% of unemployed individuals
Transparency & Accountability
- Participant certification cadence — Weekly activity certification required to a state-designated agency
Congressional Summary
New Opportunities for Business Ownership and Self-Sufficiency ActThis 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 billincreases 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), andrequires 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.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Received in the Senate and Read twice and referred to the Committee on Finance.
- Action Date
- 2026-04-28
- Date Added
- 2026-04-24
- Source
- Congress.gov →
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