Military spouses face the highest rate of unemployment and underemployment in the nation, but the Military Spouse Hiring Act is a legislative bill set to do something about it. The House of Representatives introduced H.R.1277 Military Spouse Hiring Act in 2023 to amend the Internal Revenue Code of 1986. The 118th Congress is working to add military spouses to the Work Opportunity Tax Credit (WOTC), which also includes qualifying veterans.
Military spouses face employment challenges due to childcare, permanent change of station relocations, and instability of educational and career service opportunities. This bill will provide tax credit incentives for organizations that hire military spouses, whose unemployment rate is higher than the national average. The national unemployment rate is approximately 4% based on the Bureau of Labor Statistics. The rate for military spouses is 21%.
According to the 2024 Department of Labor Veterans’ Employment and Training Service Military Spouse Fact Sheet, military spouses typically earn 38% less than their civilian counterparts, and those earning less than 50% of the household income are at greater risk of experiencing food insecurity.
Military Spouse Hiring Act
The Military Spouse Hiring Act aims to expand the WOTC to include the hiring of a qualified military spouse as the eleventh target group. Below is the proposed added language from congress.gov.
“(16) QUALIFIED MILITARY SPOUSE.-The term ‘qualified military spouse’ means any individual who is certified by the designated local agency as being (as of the hiring date) a spouse of a member of the Armed Forces of the United States.”
This bill is important because military spouses have experienced a long history of significant challenges to secure steady and meaningful work in the job market. The obvious factors are related to disruptions due to the military lifestyle such as geographical relocations. However, military spouses have also faced stigmas from employers, believing that hiring a military spouse would affect the continuity of their operations because they would eventually leave. Loyalty to the same company is no longer the norm, especially as the Covid-19 pandemic contributed to remote and hybrid work as the new normal. According to the U.S. Bureau of Labor Statistics, the average tenure of an employee is about four years with employees switching jobs at least 12 times before retirement. Therefore, any associated fears of military spouses leaving a job “too soon” should not detract from how they can bring value to an organization.
WOTC Impact
The WOTC is a federal tax credit that incentivizes employers to hire people from specified targeted groups who historically face employment barriers. Currently, there are ten target groups found at the IRS website. Some examples of these groups are qualifying summer youth employees, Supplemental Nutrition Assistance Program (SNAP) recipients, Supplemental Security Income (SSI) recipients, ex-felons, veterans, and vocational rehabilitation referrals.
According to the IRS, the WOTC is generally equal to 40% of up to $6,000 of wages paid to, or incurred on behalf of, an individual who:
- is in their first year of employment;
- is certified as being a member of a targeted group; and
- performs at least 400 hours of services for that employer.
The Department of Labor reported $1 billion in annual tax credits were paid, with 1.5 million WOTC certifications issued in 2024. Of these totals, approximately 130K veterans (6.68%) benefited from this incentive. Additionally, WOTC facilitates workplace diversity through inclusive hiring and greater access to job security alongside other workforce programs.
While organizations receive financial benefits, economies are stimulated as unemployment rates are reduced. The tangible benefits for individuals include job stability and career advancement opportunities. However, perhaps more importantly, people gain self-sufficiency and less government dependency, allowing them to attain purposeful careers and contributions within their communities.
Steps for Advocacy
The WOTC was established in 1996 and has been renewed periodically. In 2021, the Senate introduced legislation to make the WOTC permanent. Currently, the WOTC is authorized until December 31, 2025 (Section 113 of Division EE of P.L. 116-260 — Consolidated Appropriations Act, 2021). This bill has received positive bipartisan support and needs your advocacy.
Individuals can directly support the proposed bill through the Military Officers Association of America (MOAA) advocacy site or the National Military Family Association site, which includes templates to use to contact their elected officials.
Military spouses are pivotal in military families and communities as they contribute to financial stability for their households and overall military readiness. By amending the WOTC via the Military Spouse Hiring Act to incentivize military spouse employment, this could help bring down their staggeringly high unemployment rate. It promotes greater awareness about the professional value of military spouses who often carry diverse backgrounds and cultural competency. Additionally, this is another step toward alleviating financial instability in military households, which in turn creates momentum for reforms that make a real difference.
Check out “A Military Spouse’s Guide to Getting a Job” and “4 Tips for All Military Spouse Job Paths” for additional military spouse job information.
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