New Opportunities for Business Ownership and Self-Sufficiency Act

H.R. 6431 would modify how states manage Self-Employment Assistance (SEA) programs, which allow unemployed individuals to receive weekly unemployment benefits while starting their own business instead of searching for traditional employment. The bill would increase the participation cap from 5 percent to 10 percent of a state's unemployment insurance claimants and would expand eligibility to all unemployed claimants, not just those determined most likely to exhaust their regular unemployment benefits. Currently, SEA programs are underutilized, with fewer than 5 percent of eligible claimants participating in the few states that offer them.

The bill would also clarify that participants can satisfy program requirements by working on activities related to their business plan and market feasibility study. According to the Congressional Budget Office, enacting this bill would have insignificant effects on federal spending and revenues over the next decade, as studies show SEA programs do not significantly extend the duration of unemployment benefits. The bill passed the House Ways and Means Committee unanimously in February 2026 and is now eligible for a full House floor vote.