NO BOSS Act

119th Congress Introduced by Chris Coons and 2 co-sponsors

Shifts SEA eligibility to support self-employment via state-approved entrepreneurial activities or a state-approved business plan with a market feasibility study.

Introduced in Senate

Summary of Bill: S.5010 – New Opportunities for Business Ownership and Self-Sufficiency Act (NO BOSS Act)

Purpose and intent

The NO BOSS Act aims to modify how states administer self-employment assistance (SEA) programs under the Internal Revenue Code, with the goal of expanding and improving pathways to self-employment and business ownership for workers who are eligible for unemployment benefits.

Key provisions and changes

Elimination of certain eligibility prerequisite

Replaces the current rule that participants must be “likely to exhaust regular unemployment compensation.”
Specifically, it strikes subparagraph (B) of IRC 3306(t)(3) and renumbers subsequent subparagraphs, altering how eligibility for SEA is determined.

Revised participation requirements for SEA activities

The eligibility criterion for SEA now requires participants to be engaged in activities approved by the state agency that meet one of the following:
- (i) SEA activities include entrepreneurial training, business counseling, and technical assistance; or
- (ii) SEA activities are performed under a business plan and a market feasibility study submitted by the individual and approved by the state or an agency designated by the state.
In short, SEA participation can be predicated either on structured entrepreneurial supports or on a state-approved business plan with a market feasibility assessment.

Effective date

The amendments become effective two years after enactment.
States may still amend their own laws sooner if they choose within that 2-year window.

Regulations and guidance

The Secretary of Labor must issue regulations to administer the changes, following public notice and comment and subject to OMB approval.

The Secretary must also provide guidance to state workforce agencies, including:

A model list of self-employment activities that satisfy the SEA requirements.
Best practices for verifying completion of such activities.

Who is affected

State workforce agencies that administer SEA programs under state and federal unemployment insurance laws.

Individuals receiving unemployment benefits who participate in SEA activities as part of their reemployment strategy.

Entrepreneurship-support providers (e.g., organizations delivering entrepreneurial training, counseling, and technical assistance) and entities involved in approving business plans and market studies.

States, which must adjust their SEA eligibility criteria and program administration within the 2-year timeline and implement new reporting/guidance requirements.

Procedural and timeline aspects

Introduction in the Senate on July 16, 2026; referred to the Senate Finance Committee.

Effective date is two years from enactment, with a provision allowing earlier state action.

Requires formal regulatory action by the Department of Labor and issuance of formal guidance to states.

Overall impact

The bill shifts SEA eligibility away from a rigid exhaustion-language trigger to a more flexible framework emphasizing entrepreneurial supports or state-approved business planning with market analysis.

Aims to broaden access to SEA by accommodating individuals pursuing self-employment through structured training and/or validated business plans.

Introduces formal regulatory and guidance processes to standardize implementation across states.