This bill excludes up to $20,000 in tips from taxable income for workers in hospitality, food service, and cosmetology who rely on tips as part of their wages. It applies to tips received after December 31, 2024, and ends for tips received after December 31, 2029. The excluded tips still count toward qualifying for the child tax credit and earned income credit, but not for other tax deductions or credits. The IRS must adjust withholding procedures to reflect this exclusion starting in 2025.
HR 6011, the VA Work-Study Improvement Act, expands opportunities for veterans and military members participating in the VA's work-study program. It allows them to work on activities with state/local governments or nonprofits that benefit veterans (e.g., community service or job training), and sets a new wage standard requiring payments to be the highest of federal employee rates, state minimum wage, or local minimum wage. The bill also requires electronic tracking of work hours and annual public reporting on program participation, including demographics, wages, hours worked, and participating schools. These changes apply to work-study payments made on or after January 1, 2028.
HRES 297 is a non-binding resolution expressing the House of Representatives' support for fair compensation, benefits, and working conditions for paraprofessionals (like instructional assistants) and education support staff (including bus drivers, cafeteria workers, and clerical staff) in schools. It specifically calls for livable wages, job security, access to affordable health care, paid leave, and meaningful input in school policies for these workers. As a resolution, it does not create new laws or mandate changes but serves as a symbolic statement highlighting these workers' needs. The resolution directly addresses the concerns of over 3 million school support staff facing issues like underpayment, lack of benefits, and job instability.
S 2821, the American Tech Workforce Act of 2025, directly affects U.S. tech companies and foreign workers in H-1B visa and Optional Practical Training (OPT) programs. It terminates the OPT program (ending work authorization for international students after graduation) and raises the H-1B wage floor to $150,000 annually (adjusted for inflation), requiring employers to pay at least the wage of comparable U.S. workers. The bill also prohibits H-1B visas for work at third-party client sites unless the assignment is specific and continuous, and mandates prioritizing higher-paying H-1B petitions. These changes aim to reduce reliance on foreign labor at below-market wages in the tech sector.
The Transformation to Competitive Integrated Employment Act (S 2438) aims to transition people with disabilities from special certificates (which allow employers to pay below minimum wage) to competitive integrated employment. It establishes grant programs for states and eligible entities to help employers transform their business models to provide competitive wages (at least minimum wage or customary rates for similar work) and integrated services. The bill phases out special certificates with a 5-year sunset provision (ending 5 years after enactment) and requires employers to transition employees to competitive integrated employment settings. It also mandates data collection, evaluation, and stakeholder engagement, with a focus on involving people with disabilities and their families in the transition process.
The Tipped Worker Protection Act eliminates the sub-minimum wage for tipped workers, requiring employers to pay the full minimum wage instead of the current $2.13/hour rate that relies on tips to make up the difference. During a transition period, tipped workers would receive a minimum cash wage of $3.60/hour in the first year, increasing by $1.50 annually until reaching the full minimum wage. The bill also prohibits employers from keeping tips or using them for anything other than distributing to employees, requires transparency about service charges, and establishes rules for voluntary tip pooling. This bill directly affects workers in restaurants, bars, and other service industries who traditionally receive tips as part of their compensation.
This bill updates the process for H-2A agricultural visas. It requires the Department of Labor to use Bureau of Labor Statistics wage data to set the minimum wage rate for farmworkers, directly affecting farm employers needing these visas and the workers they hire. The bill also amends immigration law to have the Secretary of Homeland Security handle visa processing instead of the Attorney General and allows simultaneous processing of labor certifications and visa petitions. These changes aim to streamline the H-2A program while ensuring wage rates are based on current local data. The bill does not alter the wage rate amount itself but changes how it is calculated and processed.
This bill creates a new federal tax deduction for cash tips received by workers in occupations that traditionally accept tips (like servers, barbers, and nail technicians) on or before December 31, 2023. It allows a deduction of up to $25,000 per year for tips reported to employers, excluding employees earning over $250,000 from the same employer in the prior year. The Treasury must publish a list of qualifying occupations within 90 days, and the deduction applies to all taxpayers (not just itemizers). The changes take effect for tax years beginning after December 31, 2024.
HR 7577, the TIP Improvement Act of 2026, raises the minimum wage for tipped employees to the standard federal minimum wage (not the lower tipped wage) and requires employers to retain all tips for employees, allowing only permitted tip pooling. It also updates tax rules by doubling the qualified tip deduction limit for joint returns ($50,000), adding safeguards against fraud (like requiring tips be paid to unrelated individuals without business ownership ties), and including automatic gratuities in hospitality, food service, and cosmetology professions as deductible tips. The bill directly affects tipped workers in these industries by improving their pay security and tax benefits. Key provisions take effect for tax years beginning after December 31, 2025.
HR 4439, the Unemployment Insurance Modernization and Recession Readiness Act, modernizes unemployment insurance by providing full federal funding for extended benefits instead of state funding, increasing the number of weeks available during high unemployment periods, and improving how benefit amounts are calculated. The bill establishes minimum standards for regular unemployment benefits including a 26-week minimum duration, a minimum wage replacement rate of 75%, and a maximum benefit amount based on state average wages. It eliminates waiting weeks before benefits begin, expands eligibility for certain groups including student-workers and victims of violence or harassment, and creates a new jobseeker allowance program with specific eligibility criteria and a weekly payment of $250 (adjusted for inflation). The legislation also includes provisions for dependents' allowances and ensures extended benefits are exempt from sequestration (budget cuts).
