New Opportunities for Business Ownership and Self-Sufficiency Act

This bill proposes to expand access to Self-Employment Assistance (SEA) programs, which provide financial allowances to individuals starting businesses instead of traditional unemployment benefits. It would double the cap on program participation from 5% to 10% of a state's unemployment recipients and remove the requirement that participants be identified as likely to exhaust their regular benefits. Additionally, the legislation would allow participants to satisfy program requirements by following a state-approved business plan and market feasibility study while requiring weekly certification of their full-time efforts to establish a business.

This bill affects individuals who are eligible for regular unemployment compensation benefits and wish to participate in state-run Self-Employment Assistance (SEA) programs to establish their own businesses. State agencies administering these programs are also affected, as the bill increases the cap on participant enrollment from 5% to 10% of the state's total unemployment compensation recipients. Additionally, the legislation impacts individuals who were previously ineligible for SEA allowances because they were not identified as likely to exhaust their standard unemployment benefits.

• Expansion of Self-Employment Assistance program participation limits. The bill increases the maximum number of individuals allowed to participate in a state Self-Employment Assistance (SEA) program from 5% to 10% of those receiving regular unemployment benefits.
• Broadened eligibility for SEA program participants. The legislation removes the requirement that an individual must be identified as likely to exhaust their regular unemployment compensation benefits to qualify for the program.
• Enhanced certification requirements for self-employment activities. Participants are required to certify at least weekly that they are working full-time toward establishing a business and becoming self-employed.
• Modification of approved self-employment assistance activities. The bill allows individuals to satisfy participation requirements by performing activities pursuant to a state-approved business plan and market feasibility study, in addition to existing entrepreneurial training and counseling options.

• H.R. 6431, New Opportunities for Business Ownership and Self-Sufficiency Act
  Mar 3, 2026 · As reported by the House Committee on Ways and Means on February 20, 2026

The bill modifies existing Self-Employment Assistance (SEA) program requirements by increasing the participation cap from 5% to 10% of individuals receiving regular unemployment compensation. It also expands eligibility by removing the requirement that participants be identified as likely to exhaust their benefits and adds new criteria for state-approved self-employment assistance activities.

The bill aims to expand access to Self-Employment Assistance (SEA) programs by increasing the cap on participant enrollment and removing the requirement that individuals be identified as likely to exhaust their unemployment benefits. It also seeks to modernize program requirements by allowing participants to satisfy activity mandates through state-approved business plans and market feasibility studies.