Tax Cut for Striking Workers Act of 2026

This Act may be cited as the Tax Cut for Striking Workers Act of 2026.
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:
In the case of an individual, gross income shall not include qualified strike benefits.
For purposes of this section, the term qualified strike benefits means compensation provided by a labor organization described in section 501(c)(5) and exempt from tax under section 501(a) to a member of such organization if such compensation is provided as a replacement, in whole or in part, for compensation not received by such member from such member’s employer as the result of a strike or lockout arising from a labor dispute (as defined in section 2 of the National Labor Relations Act), or a work stoppage under the Railway Labor Act.
Section 32(c)(2)(B)(vi) of the Internal Revenue Code of 1986 is amended by inserting or 139M after by reason of section 112.
The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139L the following new item:
The amendments made by this section shall apply to compensation received after December 31, 2026.