Summary#
This bill, called the NO BOSS Act, changes federal rules that guide State self-employment assistance (SEA) programs. It removes a rule that limited who could join SEA programs and clarifies what kinds of activities count as approved SEA activities. The bill directs the Labor Department to write rules and give States guidance.
- Main change: Removes the requirement that SEA participants be “likely to exhaust regular unemployment compensation” before joining the program.
- Main change: Expands and clarifies what counts as approved SEA activities: entrepreneurial training, business counseling, technical help, or activities based on an approved business plan and market feasibility study.
- Timing: Changes apply starting two years after the bill becomes law, but States may change their rules sooner if they want.
- Administration: The Secretary of Labor must write regulations (after public comment and OMB review) and issue a model list of activities plus verification best practices for States.
What it means for you#
- Unemployed people interested in starting a business: This could make it easier for more people to join SEA programs because they no longer must be judged “likely to exhaust” regular unemployment benefits first. SEA programs let people work on starting a business while receiving unemployment benefits (the bill does not redefine SEA itself).
- People already in SEA programs: The kinds of activities that count toward participation are spelled out more clearly. States can approve business-plan–based activities as meeting program rules.
- State workforce agencies: States will need to update their SEA program rules to match the new federal standard. They will also use federal guidance and may need new processes to approve business plans and verify completion of activities.
- Small-business counselors and trainers: Training, counseling, and technical assistance are explicitly listed as qualifying activities, so providers who deliver those services may see more referrals.
- Federal agencies: The Labor Department must write regulations and provide guidance, and OMB must approve the regulation process.
Expenses#
No publicly available information.
- The bill itself does not include a cost estimate or funding for implementation.
- Possible effects that are not estimated in the bill: increased administrative costs for States to revise program rules, approve business plans, and verify participant completion; costs for the Labor Department to write regulations and produce guidance.
- The bill does not change federal benefit amounts or explicitly add federal spending for SEA payments.
Proponents' View#
- The bill appears intended to broaden access to SEA programs by removing a rule that limited eligibility to those likely to exhaust regular unemployment benefits.
- Supporters may argue that the change modernizes and clarifies what counts as approved entrepreneurial activities, making it easier for people to get training and support to start businesses.
- The requirement that the Labor Department issue a model list and verification best practices could improve consistency across States.
Opponents' View#
- One concern is that removing the “likely to exhaust” requirement could expand eligibility and increase program costs or change who uses SEA benefits.
- The bill does not include a fiscal estimate, so it is unclear how much States or the federal government would need to spend to implement the changes.
- It is unclear how States must verify completion of business plans or feasibility studies; that could create administrative burden or inconsistent standards across States until federal regulations and guidance are final.
- The two-year delay before the changes automatically apply could slow the pace of any nationwide effect, though States may act sooner if they choose.