Gallego Introduces Bill to Protect Striking Workers

WASHINGTON –Today,Senator Ruben Gallego (D-AZ)introduced theTax Cut for Striking Workers Actto ensure workers are not taxed on the small stipends they receive while on strike.
“When a worker goes on strike, they are making a massive sacrifice in order to fight for a better future. The strike funds they receive are how they how they continue to pay the rent and put food on the table,”said Senator Gallego.“To then be taxed on those funds is an extra hit striking workers just can’t afford. My bill fixes that.”
When workers go on strike, they may receive a small stipend to help cover some of their lost wages, usually paid from a strike fund set up by the union. Strike fund payments can vary by union but are usually just a few hundred dollars a week. Many workers are surprised when they later find out they owe federal taxes on these small payments.
TheTax Cut for Striking Workers Actwould provide relief for striking workers by excluding compensation a worker receives from a union’s strike fund from a taxpayer’s gross income.
Full text of the legislation is availableHERE.
The legislation is cosponsored bySenators Ron Wyden (D-OR), Jeff Merkley (D-OR), Kirsten Gillibrand (D-NY), Cory Booker (D-NJ), Richard Blumenthal (D-CT), Brian Schatz (D-HI), Tammy Baldwin (D-WI), Chris Van Hollen (D-MD),andJohn Fetterman (D-PA).
TheTax Cut for Striking Workers Actis supported by: United Mine Workers of America (UMWA), International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART), International Association of Machinists and Aerospace Workers (IAM), International Brotherhood of Teamsters, Communications Workers of America (CWA), International Alliance of Theatrical Stage Employees (IATSE), Iron Workers, United Food and Commercial Workers International Union (UFCW), American Federation of Teachers (AFT), Transport Workers Union of America (TWU), National Nurses United, American Federation of Musicians, National Federation of Federal Employees (NFFE-IAM), American Federation of State, County and Municipal Employees (AFSCME), Center for American Progress, AFL-CIO, United Steelworkers (USW).
Senator Gallego is a strong supporter of workers’ rights. Earlier this year, he introduced theStriking and Locked Out Workers Healthcare Protection Actto prevent employers from cancelling or altering health insurance for workers exercising their right to strike. He also backed theNo Tax Breaks for Union Busting Actto end taxpayer subsidies for companies’ anti-union behavior, which corporations can currently deduct as a business expense.
He also supports theRichard L. Trumka Protecting the Right to Organize Act (PRO Act),comprehensive labor legislation to protect the rights of workers to stand together and bargain for fairer wages, better benefits, and safer workplaces.
9/11/25