From multiple proposed bills to reduce unemployment among military spouses and new changes to service member worker protections, employers can anticipate a busy 2026 for developments affecting military servicemembers, veterans, and their families. Here are four areas for employers to watch.

Quick Hits

• Several new developments could impact the employment of military service members and their families and employers’ compliance obligations in 2026.
• Changes range from proposals to increase incentives for hiring military spouses to enhanced employment protections for service members while on duty.
• Military spouse employment opportunities and support remain a focus for pending legislation.

1. Military Spouse Employment

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...

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