To direct the heads of certain Federal agencies to develop and support worker-owned cooperative businesses, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
To direct the heads of certain Federal agencies to develop and support worker-owned cooperative busi
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Directs multiple federal agencies to develop programs, remove regulatory barriers, and coordinate efforts to promote and expand worker-owned cooperative businesses across the United States.
Who Benefits
- Worker-owned cooperative businesses (existing and prospective)
- Employees of businesses transitioning to worker ownership
- Cooperative development organizations and intermediaries
Who Bears Costs
- Six covered federal agencies (new programmatic and regulatory review mandates)
- Department of Labor (Council administration and annual reporting)
- Traditional small business lenders (potential competitive displacement by cooperative intermediaries in SBA lending)
Key Policy Areas
Labor & Employment, Small Business, Economic Development, Government Operations
Primary Purpose
Directs multiple federal agencies to develop programs, remove regulatory barriers, and coordinate efforts to promote and expand worker-owned cooperative businesses across the United States.
Policy Domains
Legislative Strategy
"Institutional infrastructure-building: creates a permanent interagency coordination body, expands existing lending programs, and mandates agency-level programmatic support rather than direct subsidies to individual co-ops."
Sponsors
Legislative Progress
IntroducedMr. Khanna introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
CDFI Fund (Treasury), Congress, Department of Agriculture
Positive-direction: Congress
Negative-direction: CDFI Fund (Treasury), Department of Agriculture, Department of Commerce, Department of Labor, Department of the Treasury, Domestic Policy Council, Internal Revenue Service, National Economic Council, Small Business Administration
Businesses organized as cooperatives under state law, ESOP companies meeting IRC 1042(c), Worker-owned cooperative businesses
Cooperative development advocates, Cooperative development organizations
Community Development Financial Institutions, Cooperative lending intermediaries
Prospective cooperative founders, Small businesses seeking cooperative conversion
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Note: {'description': 'The bill defines worker-owned cooperatives broadly (majority employee-owned OR IRC 1042(c) eligible) but does not specify how agencies should handle entities that meet one criterion but not the other, potentially creating different treatment standards across agencies.'}
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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