H.R. 10194 — PRO–WORK Act

This section prohibits employers from receiving, obligating, or expending Federal funds during any lock-out period beginning January 1, 2026, and for an additional period equal in length to the lock-out (for the first instance) or one year thereafter. It requires employers to reimburse the Federal Government for any funds used in violation between January 1, 2026, and the date of enactment.

This section denies federal tax credits to corporations engaged in a lock-out of employees under the National Labor Relations Act. For the first lock-out period in a taxable year, credits are denied only to the extent allocable to that period; any additional lock-out periods in the same year result in denial of all credits for the year. The rule does not apply to credits directly attributable to tax payments and takes effect for taxable years beginning after December 31, 2025.