One key area to watch is bipartisan legislation to reduce the unemployment rate among spouses of active-duty military service members, who often face rates several times the national rate.
On November 20, 2025, Senators Bill Cassidy (R-LA) and Maggie Hassan (D-NH), and Representatives Steven Horsford (D-NV) and Lloyd Smucker (R-PA) introduced an updated version of the Improve and Enhance the Work Opportunity Tax Credit Act (S.3265/H.R.6231) that would extend the Work Opportunity Tax Credit (WOTC) to military spouses. The WOTC provides federal tax credits to employers that hire certain “American job seekers who have consistently faced barriers to employment.” That proposed legislation is similar to the Military Spouse Hiring Act (H.R.2033/S.1027), introduced earlier in 2025.
For employers, the proposals could create new tax incentives to hire military spouses, alongside other proposals that could reshape compliance and hiring strategies.
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