Federal Legislation
Senators Introduce Working Americans Tax Cut Bill
March 19, 2026
Senators including Mark Kelly, Chris Van Hollen, Kirsten Gillibrand, Cory Booker, Andy Kim, and Representative Don Beyer have introduced the Working Americans' Tax Cut Act, proposing to eliminate federal income taxes for Americans earning under $46,000 and provide significant tax relief for those earning up to $80,500. The bill is fully funded by surtaxes on millionaires and aims to provide tax relief to nearly 130 million working Americans without increasing the national debt. While primarily a tax policy measure, this legislation could indirectly affect federal procurement by increasing disposable income for millions, potentially influencing demand for government economic programs and contracts.
- Why this matters: Increased disposable income among working Americans may impact federal program participation and procurement demand, especially in social services and economic support contracts.
- Procurement professionals should consider potential shifts in contract requirements or funding priorities as economic conditions evolve due to tax policy changes.
- Contractors serving agencies focused on workforce support, community services, and economic development may find new opportunities as the bill could affect program budgets and beneficiary populations.
- Organizations should track legislative progress and assess impacts on federal spending patterns relevant to their contract portfolios.
For decades, our tax code has been tilted to benefit the wealthiest Americans 6 especially those making millions of dollars each year from investments and capital gains. Our bill would restore balance and fairness to our tax code by asking the wealthiest Americans to contribute more through a tiered surtax on income above one million dollars. That revenue will deliver meaningful tax relief for working Americans trying to afford basic necessities like groceries, rent, child care, and gas.
— Representative Don Beyer
Families across Arizona are working hard and doing everything right but still falling behind. Instead of helping them get ahead, Trump gave more huge tax breaks to the wealthiest Americans while hiking up prices on everyone else. Our plan is to put more money in the pockets of middle-class Americans 6from nurses and teachers to firefighters and electricians 6and restore the basic promise that in this country, hard work pays off.
— Senator Mark Kelly
Far too many Americans are working hard for their paychecks but still having trouble making ends meet. These Americans who are earning just enough to get by 6 to meet their basic living expense 6 should not have to pay a federal income tax. Our bill would ensure just that 6 and it would provide a significant tax break to millions of other working Americans, so folks can keep more of their hard-earned money in their pockets.
— Senator Chris Van Hollen
Agencies
United States Senate, United States House of Representatives