I 
119TH CONGRESS 
1ST SESSION H. R. 5958 
To direct the heads of certain Federal agencies to develop and support 
worker-owned cooperative businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 7, 2025 
Mr. KHANNA introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on Finan-
cial Services, and Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To direct the heads of certain Federal agencies to develop 
and support worker-owned cooperative businesses, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Worker Coop-
erative Development and Support Act’’. 
SEC. 2. PROMOTION OF WORKER-OWNED COOPERATIVE 
BUSINESS BY CERTAIN AGENCIES. 
The head of each covered agency shall— 
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(1) implement programs and initiatives to sup-
port and expand worker-owned cooperative busi-
nesses; 
(2) periodically review existing regulations and 
propose revisions to such regulations to remove bar-
riers 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 
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(C) the effectiveness of existing programs 
that relate to worker-owned cooperative busi-
nesses; 
(7) provide education, outreach, and technical 
assistance to assist existing businesses to transition 
to worker-owned cooperative businesses; 
(8) engage with businesses, nonprofit organiza-
tions, and academic institutions to identify best 
practices to enhance the use worker-owned coopera-
tive businesses; and 
(9) provide relevant training for Federal work-
ers to integrate worker-owned cooperative businesses 
into existing systems of Federal Government. 
SEC. 3. EDUCATION AND OUTREACH RELATING TO WORK-
ER-OWNED COOPERATIVE BUSINESS. 
The Administrator of the Small Business Administra-
tion 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. 
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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 Co-
operatives (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 Eco-
nomic Council. 
(6) The Director of the Domestic Policy Coun-
cil. 
(7) A representative chosen by the Secretary of 
Agriculture to represent the Interagency Working 
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Group on Cooperative Development of the Depart-
ment 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 Fed-
eral 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 coopera-
tive businesses; 
(B) educational initiatives across Federal 
agencies to increase awareness and under-
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standing of the worker-owned cooperative busi-
ness 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 re-
spect to the responsibilities described in subsection 
(d); 
(2) policy recommendations relating to the pro-
motion 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 coopera-
tive businesses and initiatives. 
(f) SUNSET.—The Council shall terminate on the 
date that is 10 years after the date of enactment of this 
section. 
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SEC. 5. SMALL BUSINESS INTERMEDIARY LENDING PILOT 
PROGRAM FOR WORKER-OWNED COOPERA-
TIVE 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 Develop-
ment 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 sub-
paragraph (G); and 
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(3) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) the provision of education and facili-
tation 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
BUSI-
NESS.—The term ‘‘worker-owned cooperative busi-
ness’’ means— 
(A) any entity that is— 
(i) organized under a State law relat-
ing to worker cooperatives; and 
(ii) majority owned or controlled by 
employees of such entity; or 
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(B) an ‘‘eligible worker-owned coopera-
tive’’, as such term is defined in section 1042(c) 
of the Internal Revenue Code of 1986. 
Æ 
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