H.R. 10194 – PRO–WORK Act

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Updated September 3, 2026 at 2:51 AM UTC

The PRO‑WORK Act would stop employers who lock out their workers from receiving any federal money and from claiming most tax credits. It adds a ban on federal funds during a lock‑out and for a period afterward, and it requires employers who violate the ban to pay back any funds they used. It also creates a new tax rule that denies corporate tax credits for any year in which the corporation engages in a lock‑out, with a longer denial if the company has locked out workers before that year.

Key Provisions

Federal funding: No federal funds may be provided to an employer while it is in a lock‑out, and the ban continues for a period equal to the lock‑out length if it’s the first lock‑out, or for one year after the lock‑out if the employer has locked out workers before.
Reimbursement: Employers who receive federal funds during a prohibited period must repay those funds to the government.
Tax credits: Corporations that lock out employees cannot claim any tax credits for the taxable year in which the lock‑out occurs; if it’s not the first lock‑out that year, all credits are denied.
Definition and aggregation: The bill defines “lock‑out period” and treats all entities considered a single employer as a single corporation for the credit denial.
Effective dates: The funding prohibition applies from Jan. 1, 2026, and the tax‑credit rules apply to taxable years beginning after Dec. 31, 2025.

Legislative Activity

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2 earlier actions

HouseIntro Referral Latest Action

Sponsor introductory remarks on measure. (CR H5828)

September 15, 2026

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HouseIntro Referral

Introduced in House

August 31, 2026

HouseIntro Referral

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, 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.

Ways and Means Committee

August 31, 2026

HouseIntro Referral

Sponsor introductory remarks on measure. (CR H5828)

September 15, 2026

Bill Text

Latest available legislative text

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Introduced in HouseIssued August 31, 2026

I

119th CONGRESS

2d Session

H. R. 10194

IN THE HOUSE OF REPRESENTATIVES

August 31, 2026

Mr. Mrvan introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, 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

A BILL

To amend the National Labor Relations Act and the Internal Revenue Code of 1986 to limit access of employers to Federal funds and tax credits while engaged in a lock-out of employees.

1.

Short title

This Act may be cited as the Preventing Revenue Opportunities for Workplace Lockouts and Retaliation Act or PRO–WORK Act.

2.

Prohibition on Federal funds during lock-outs

The National Labor Relations Act (29 U.S.C. 151 et seq.) is amended by adding at the end the following:

20.

Prohibition on Federal funds during lock-outs

(a)

In general

Beginning on January 1, 2026, and notwithstanding any other provision of law, no Federal funds may be made available to, or obligated or expended by, an employer during—

(1)

any lock-out period; and

(2)

(A)

if no preceding lock-out period has occurred with respect to such employer, an additional period that—

(i)

begins on the first day following the lock-out period; and

(ii)

is equal in length to the number of days in such lock-out period; and

(B)

in any other case, the 1-year period beginning on the day following the lock-out period.

(b)

Reimbursement

Each employer shall reimburse the Federal Government for any funds obligated or expended by the employer in violation of subsection (a) during any part of a lock-out period that occurred during the period beginning on January 1, 2026, and ending on the date of enactment of the Preventing Revenue Opportunities for Workplace Lockouts and Retaliation Act.

(c)

Lock-Out period defined

For purposes of this section, the term lock-out period means, with respect to an employer, any period of time during which such employer is engaged in a lock-out of employees.

.

3.

Denial of tax credits for corporations engaged in lock-out of employees

(a)

In general

Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subpart:

H

Denial of credits for corporations engaged in lock-Out of employees

Sec. 54. Denial of credits for corporations engaged in lock-out of employees.

54.

Denial of credits for corporations engaged in lock-out of employees

(a)

In general

In the case of a corporation with respect to which a lock-out period occurs during any taxable year—

(1)

if no preceding lock-out period has occurred with respect to such corporation during such taxable year, no credit shall be allowed under this title with respect to such corporation for such taxable year to the extent of the amount of such credit that is properly allocable to such lock-out period, and

(2)

in any other case, no credit shall be allowed under this title with respect to such corporation for such taxable year.

The preceding sentence shall not apply with respect to any credit directly attributable to a payment of tax by the corporation.

(b)

Lock-Out period

For purposes of this section, the term lock-out period means, with respect to any corporation for any taxable year, any period of time during which such corporation is engaged in a lock-out of employees (within the meaning of the National Labor Relations Act).

(c)

Aggregation rule

All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single corporation.

(d)

Regulations

The Secretary, in consultation with the Secretary of Labor, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

.

(b)

Clerical amendment

The table of subparts for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

Subpart H. Denial of credits for corporations engaged in lock-out of employees.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.