Technical corrections only. The diff between v3 and v4 reflects updates to the legislative status, specifically noting the bill's referral to the Senate and the updated attestation of the Clerk. There are no substantive policy changes to the text of the bill itself.
New Opportunities for Business Ownership and Self-Sufficiency Act
- Sponsor
- Rep. Carey, Mike [R-OH-15]
- Committees
- Finance Committee (primary)
- Last action
- Apr 28, 2026
Bottom line
The bill aims to broaden access to self-employment assistance for unemployed individuals by increasing eligibility, offering program flexibility to states, and expanding participation limits, while also enhancing program accountability.
What it actually does
This bill amends the Internal Revenue Code of 1986 to expand and modify State Self-Employment Assistance Programs (SEAPs). It removes the requirement that participants must be likely to exhaust regular unemployment compensation, offers more flexible options for approved self-employment activities, and doubles the cap on the number of individuals a state can enroll in such programs from 5% to 10% of those receiving unemployment benefits. Additionally, it mandates weekly certification of activities by participants and directs the Secretary of Labor to issue regulations and guidance.
Proponents argue
Supporters argue that this bill will significantly boost entrepreneurship by making it easier for unemployed individuals to access support and training to start their own businesses, thereby reducing long-term reliance on traditional unemployment benefits. They contend that removing the 'likely to exhaust' requirement allows for earlier intervention, while increased flexibility and participation limits empower states to better serve their populations and foster economic growth.
Opponents contend
Critics might express concerns that expanding eligibility and participation limits could lead to increased federal and state outlays for unemployment benefits without sufficient evidence of long-term cost savings or successful business outcomes. They may also argue that the increased flexibility for states in approving activities could lead to inconsistent program quality or potential for misuse, and that the weekly certification requirement could be an administrative burden.
The bill is very short and clearly written, making it highly accessible for a reader to understand its provisions and implications quickly.
Section 2(a)
Elimination of 'Likely to Exhaust' Requirement
This provision removes the current requirement that individuals must be deemed 'likely to exhaust' their regular unemployment compensation benefits before they can participate in a State's Self-Employment Assistance Program (SEAP). By striking this criterion, the bill broadens eligibility, allowing more unemployed individuals to access entrepreneurial support earlier in their unemployment period.
Supporters argue
Proponents argue that removing this barrier allows individuals to pursue self-employment opportunities sooner, potentially shortening their period of unemployment and fostering economic independence. They believe it aligns with the goal of proactive workforce development.
Critics contend
Opponents might argue that this change could lead to individuals entering SEAPs who might have found traditional employment quickly, potentially diverting resources from those who truly need extended support or increasing overall program costs without clear long-term benefits.
Tradeoffs
The provision balances the desire to provide broader access to entrepreneurial support with concerns about program costs and ensuring resources are targeted to those who would most benefit from an alternative to traditional job searching.
Section 2(b)
Modification of Self-Employment Assistance Activities
This section amends the types of self-employment assistance activities that states can approve for participants. It now explicitly allows for two pathways: either activities that include entrepreneurial training, business counseling, and technical assistance, or activities performed pursuant to a business plan and market feasibility study approved by the state or a designated agency. This provides states and participants with greater flexibility in designing and pursuing entrepreneurial paths.
Section 2(c)
Weekly Certification Requirement
This amendment introduces a new requirement for participants in Self-Employment Assistance Programs to certify their self-employment activities on at least a weekly basis to an agency designated by the State. This adds a layer of regular reporting and accountability for individuals receiving benefits through the program.
Section 2(d)
Adjustment of Participation Limit
This section increases the maximum percentage of individuals receiving regular unemployment compensation who can participate in a state's Self-Employment Assistance Program (SEAP). The cap is raised from 5% to 10% of those receiving regular unemployment benefits, allowing states to enroll a greater number of eligible individuals into their entrepreneurial support programs.