Capitol Insights: Supporting Military Families Through Smart Hiring Incentives

Capitol Insights highlights the latest legislative updates that shape employer tax incentives and workforce policy, helping businesses stay informed about how federal actions impact hiring and compliance.

At a Glance:

• Senator Bill Cassidy (R-LA) proposed expanding the Work Opportunity Tax Credit (WOTC) to include military spouses.

• The proposal was discussed during the U.S. Senate Committee on Veterans’ Affairs hearing on November 5, 2025.

• Military spouse unemployment remains consistently higher than the national average.

• Employers could receive up to $2,400 in federal credits for each qualifying hire.

• The measure has bipartisan traction and could be included in a 2026 workforce or tax package.

Every year, the Work Opportunity Tax Credit (WOTC) helps thousands of employers hire individuals who face barriers to employment. During the U.S. Senate Committee on Veterans’ Affairs hearing on November 5, 2025, Senator Bill Cassidy (R-LA) highlighted an important expansion that would make military spouses eligible for the same federal hiring incentive. His remarks, captured in this video, reflect his ongoing commitment to improving employment outcomes for military families.

Tackling a Persistent Challenge

Military spouses consistently experience unemployment rates that exceed the national average, often due to frequent relocations and limited access to local job markets. Many of these spouses are highly qualified professionals whose career progress is repeatedly interrupted by Permanent Change of Station (PCS) moves. Senator Cassidy’s proposal would address this problem directly by offering employers a WOTC credit, typically up to $2,400 for each qualifying hire, when they employ the spouse of an active-duty service member.

Why Employers Should Pay Attention

For employers already leveraging WOTC, the addition of military spouses would open access to a proven, motivated talent pool. These candidates bring adaptability, leadership, and reliability: qualities that translate well across industries. The tax credit would help offset onboarding and training costs, making it easier for HR teams to prioritize these hires without financial hesitation.

Beyond the numbers, the move reinforces a strong message: hiring military spouses is both good business and the right thing to do. It strengthens an organization’s community footprint, enhances diversity efforts, and supports broader environmental, social, and governance (ESG) commitments. Many employers already highlight veteran initiatives in their annual reports, and including military spouses would naturally build on that story.

A Win for Military Families

Cassidy’s initiative is not just a workforce policy; it is a family policy. By increasing employment opportunities for spouses, the measure helps stabilize household income and strengthens family resilience. Each successful hire represents more than a paycheck; it is a step toward financial independence and career continuity for those who support service members behind the scenes.

The Broader Legislative Context

Cassidy’s comments at the November 5 hearing align with his bipartisan efforts, often alongside Senator Maggie Hassan, to modernize and extend the WOTC program. Expanding it to military spouses is a natural evolution of his broader workforce strategy to use existing, effective tools to close opportunity gaps and reduce hiring barriers.

Moving Forward

The proposal has bipartisan traction and could be folded into a larger tax or workforce package in 2026. Employers who support the change can make their voices heard by engaging with industry groups, chambers of commerce, and workforce coalitions that advocate for the renewal and expansion of WOTC.

To see Senator Cassidy’s remarks from the hearing, watch the video below, or on YouTube.

Employers interested in learning how upcoming WOTC changes may affect their hiring programs can reach out to a Maximus WOTC specialist for personalized guidance.