November 7, 2025
Mr. Khanna introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committees on Financial Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To direct the heads of certain Federal agencies to develop and support worker-owned cooperative businesses, and for other purposes.
Section 1. Short title
This Act may be cited as the National Worker Cooperative Development and Support Act
.
Sec. 2. Promotion of worker-owned cooperative business by certain agencies
The head of each covered agency shall—
(1)
implement programs and initiatives to support and expand worker-owned cooperative businesses;
(2)
periodically review existing regulations and propose revisions to such regulations to remove barriers that impede the formation and expansion of worker-owned cooperative businesses;
(3)
facilitate access to capital for worker-owned cooperative businesses, including—
(A)
exploring innovative financing options; and
(B)
using existing programs to support worker-owned cooperative businesses;
(4)
coordinate with the United States Council on Worker Cooperatives established under section 4;
(5)
develop, use, and contribute to the Federal strategy described in section 4(d)(1);
(6)
conduct and support research with respect to—
(A)
the economic impact of worker-owned cooperative businesses;
(B)
barriers to growth for worker-owned cooperative businesses; and
(C)
the effectiveness of existing programs that relate to worker-owned cooperative businesses;
(7)
provide education, outreach, and technical assistance to assist existing businesses to transition to worker-owned cooperative businesses;
(8)
engage with businesses, nonprofit organizations, and academic institutions to identify best practices to enhance the use worker-owned cooperative businesses; and
(9)
provide relevant training for Federal workers to integrate worker-owned cooperative businesses into existing systems of Federal Government.
Sec. 3. Education and outreach relating to worker-owned cooperative business
The Administrator of the Small Business Administration shall—
(1)
develop educational materials relating to worker-owned cooperative businesses that are—
(A)
accessible online and in print; and
(B)
translated into multiple languages; and
(2)
implement an outreach program relating to worker-owned cooperative businesses in communities where English is not the predominant language.
Sec. 4. Establishment of the United States Council on Worker Cooperatives
(a) In general
Not later than 180 days after the date of enactment of this section, the Secretary of Labor shall establish the United States Council on Worker Cooperatives (in this section referred to as the Council
) to coordinate, across the Federal Government, activities relating to the formation and expansion of worker-owned cooperative businesses.
(b) Chair
The Secretary of Labor shall—
(1)
serve as the chair of the Council; or
(2)
appoint a designee to serve as the chair of the Council.
(c) Members
The Council shall be comprised of the following members:
(1)
The Administrator of the Small Business Administration.
(2)
The Commissioner of Internal Revenue.
(3)
The Secretary of the Treasury.
(4)
The Secretary of Commerce.
(5)
A representative from the National Economic Council.
(6)
The Director of the Domestic Policy Council.
(7)
A representative chosen by the Secretary of Agriculture to represent the Interagency Working Group on Cooperative Development of the Department of Agriculture, as established under section 310B(e)(12) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)(12)).
(8)
Any other members as determined by the Secretary of Labor.
(d) Responsibilities
The Council shall—
(1)
develop a Federal strategy to incorporate worker-owned cooperative businesses as a tool for national economic development;
(2)
identify regulatory barriers within the Federal Government to the formation and expansion of worker-owned cooperative businesses;
(3)
propose solutions to the barriers identified in paragraph (2) to form and expand worker-owned cooperative businesses in the United States; and
(4)
coordinate—
(A)
the availability of data and research relating to—
(i)
barriers to entry for the creation of worker-owned cooperative businesses; and
(ii)
benefits of worker-owned cooperative businesses;
(B)
educational initiatives across Federal agencies to increase awareness and understanding of the worker-owned cooperative business model; and
(C)
between existing and future initiatives relating to worker-owned cooperative businesses to avoid duplication or conflicting objectives.
(e) Report
Not later than 2 years after the date of enactment of this section, and each year thereafter, the Council shall submit to the Congress and publish on a public website a report that includes a description of—
(1)
any progress made by the Council with respect to the responsibilities described in subsection (d);
(2)
policy recommendations relating to the promotion of the formation and expansion of worker-owned cooperative businesses; and
(3)
the successes, best practices, and challenges that Federal agencies have in the promotion of the formation and expansion of worker-owned cooperative businesses and initiatives.
(f) Sunset
The Council shall terminate on the date that is 10 years after the date of enactment of this section.
Sec. 5. Small business intermediary lending pilot program for worker-owned cooperative business
Section 7(l) of the Small Business Act (15 U.S.C. 636(l)) is amended—
(1)
in paragraph (1), by striking subparagraph (A) and inserting the following:
(A)
the term ‘eligible intermediary’ means a cooperative (as defined in subsection (a)(35)); and; and
(2)
in paragraph (4)(G)—
(A)
by striking 2011, 2012, and 2013
and inserting 2026 through 2036
; and
(B)
in clause (ii), by striking $20,000,000
and inserting $60,000,000
.
Sec. 6. CDFI education and guidance about the value of worker-owned cooperative business
Section 108(b)(1) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4707(b)(1)) is amended—
(1)
in subparagraph (E)(ii)(II), by striking and
at the end;
(2)
by redesignating subparagraph (F) as subparagraph (G); and
(3)
by inserting after subparagraph (E) the following:
(F)
the provision of education and facilitation of services to assist in the establishment and management of worker-owned cooperative businesses; and
Sec. 7. Definitions
In this Act:
(1) Covered agency
The term covered agency means the following:
(A)
The Small Business Administration.
(B)
The Internal Revenue Service.
(C)
The Department of the Treasury.
(D)
The Department of Commerce.
(E)
The Department of Agriculture.
(F)
The Department of Labor.
(2) Worker-owned cooperative business
The term worker-owned cooperative business means—
(A)
any entity that is—
(i)
organized under a State law relating to worker cooperatives; and
(ii)
majority owned or controlled by employees of such entity; or
(B)
an eligible worker-owned cooperative
, as such term is defined in section 1042(c) of the Internal Revenue Code of 1986.