Unemployed workers who want to start a business instead of looking for a traditional job would have easier access to state self-employment assistance programs under this bill, which lets states pay unemployment benefits to participants while they build a startup. Currently, states can only enroll people who are likely to exhaust their unemployment benefits — this bill removes that restriction, opening the programs to more workers earlier in their unemployment period. States would be allowed to count a wider range of approved entrepreneurial activities, including work done under a personal business plan, toward program requirements — with participants checking in at least weekly. The cap on how many people a state can enroll at once would double, from 5 percent to 10 percent of the unemployment caseload, giving more workers the opportunity to pursue self-employment with income support.
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
- Introduced in House
- Action Date
- 2025-12-04
- Date Added
- 2026-04-24
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