FMI – The Food Industry Association has joined 473 other organizations and employers in a multi-industry letter urging Congress to extend the Work Opportunity Tax Credit during its post-election lame-duck session. The credit, which encourages employers to hire workers facing significant barriers to employment, expired Dec. 31, 2025.
“FMI has been a champion of WOTC since its inception 30 years ago,” said Christine Pollack, FMI VP of government relations. “WOTC is a key workforce-building tool utilized by FMI members to hire veterans, justice-involved individuals, SNAP participants and other Americans facing barriers to employment. When Congress returns to Washington, it must heed the urgent call from food industry employers and hundreds of other businesses and organizations around the country to preserve and strengthen WOTC.”
The letter, sent Oct. 30 to Senate Finance Committee Chairman Mike Crapo and Ranking Member Ron Wyden and House Ways and Means Committee Chairman Jason Smith and Ranking Member Richard Neal, asks Congress to include the bipartisan Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6231/S. 3265) in any year-end tax package.
The bill would:
- extend the credit retroactively from Jan. 1, 2026, through Dec. 31, 2030;
- increase the credit rate from 40 percent to 50 percent of qualified wages;
- index the credit for inflation; add a credit for employees completing at least 400 hours of service, rewarding longer-term employment; and
- extend eligibility to employers hiring spouses of currently serving military personnel. The credit can reach up to $9,600 for certain qualified veterans.
The signers note that employers have continued hiring from WOTC-eligible populations during the lapse, relying on Congress’ longstanding practice of retroactive renewal, and that labor force participation remains near historically low levels outside the pandemic.
The push comes as labor gaps carry measurable costs for grocers: in Advantage Solutions’ 2026 Outlook Survey, released last week, 57 percent of retailers reported lost sales and 57 percent reported weaker service from staffing constraints.
The food industry is heavily represented among the signatories, including Ahold Delhaize USA, Albertsons Cos., Alex Lee, Big Y Foods, Brookshire Grocery Co., Food Lion, Giant Eagle, Hannaford, Hy-Vee, Meijer and the National Grocers Association, alongside dozens of state grocers associations and independent operators. FMI is a member of the Critical Labor Coalition, whose WOTC Works campaign has pressed for the extension this year.
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