Today, freelancing is the labor market, not a side economy.
Roughly 39% of Americans now do freelance work in some form, and that share continues to rise. By 2027, projections suggest more than 86 million people will be working independently—over half the U.S. workforce.
That number has grown steadily for more than a decade, adding roughly one million new freelancers each year. Among Gen Z, 25% already freelance, alongside 57% of millennials. For younger workers, freelancing is increasingly the default starting point.
But healthcare, retirement, paid leave, and unemployment insurance are still built around full-time employment with benefits tied to an employer. That framework doesn’t reflect how millions of people actually work today, with freelancers contributing an estimated $1.5 trillion to the economy with few supports.
The financial realities pile on. Without access to employer-sponsored benefits, freelancers are often stuck paying more for less. Someone making $70,000 on their own might still face higher health insurance costs than a salaried employee, without a group plan. Paperwork and tax complexities only add to the strain and could include hiring accountants, managing quarterly tax payments, and wrestling with legal business status
Complicated change shows up in policy
In 2025, the One Big Beautiful Bill Act (OBBBA) introduced some wins for freelancers. The permanent extension of the means-for-freelancers-key-takeaways-from-the-2025-reforms/” rel=”nofollow noopener” target=”_blank”>20% Qualified Business Income deduction means solopreneurs can continue to deduct a portion of their income, providing rare long-term tax stability. The threshold for reporting 1099-MISC income has jumped from $600 to $2,000 in 2026, easing the paperwork load on smaller projects.
But OBBBA leaves healthcare untouched—freelancers are still left piecing together coverage from state healthcare marketplaces or private insurers. This has become such a sticking point that in a recent poll, 82% of freelancers said that healthcare access will affect their votes in the upcoming election cycle.
The healthcare marketplace remains a primaryans during the 2026 Open Enrollment. Roughly half of those consumers are affiliated with small businesses—either self-employed, small business owners, or employees of small businesses
Recent changes to the system may make things harder, not easier. Although court cases are currently battling the specifics, ACA changes included:
- Shortened or reduced Marketplace enrollment periods
- More demanding income verification
- Auto-re-enrollment for low-income plans replaced by a $5 monthly premium unless proof of eligibility is submitted annually.
New rights
Freelancers have long operated without a safety net, facing underpayment, dismissive or unwelcome responses, and a lack of protections around medical or family leave.
But that’s starting to shift, thanks to growing legislative wins driven by the advocacy group Freelancers Union and others.
Take New York City’s Freelance Isn’t Free Act—it set a strong precedent almost 10 years ago by requiring written contracts for jobs over $800, ensuring payment within 30 days after completing the work, and shielding freelancers from retaliation when exercising their rights. In 2024, these protections were instituted across New York State.
California followed with its own Freelance Worker Protection Act, which lowers the contract threshold to $250 and gives freelancers the right to pursue legal action through the state Labor Commissioner if payments aren’t made.
Other states and cities are following suit. Illinois’s version went into effect in mid-2025, with protections for freelance work over $500. Minneapolis and Seattle have both enacted local laws that require contracts, enforce payment deadlines, and offer real enforcement tools—including the right to recover damages and legal fees. The movement is growing because the need is urgent. Freelancers shouldn’t have to fight tooth and nail for a paycheck.
The solopreneur economy deserves more
While OBBBA helps with tax law, freelancers still face hurdles, especially regarding safety nets. Unemployment benefits mostly cover traditional jobs, leaving freelancers and solopreneurs out. During the pandemic, the government made a temporary program to help gig workers and the self-employed, but it ended in 2021. Since then, nothing permanent has stepped in.
What freelancers truly need are portable benefits—healthcare, unemployment, and retirement that travel with the person, not the employer. These ideas have been around for a while, but they’ve never gained enough political momentum to become reality.
Even proposals from 2022, like the Securing a Strong Retirement Act and the Independent Workers Act,acknowledge the problem but stop short of solving it. Solopreneurs shouldn’t be penalized for working outside of the corporate mold.
The future of work is independent
Independent workers are powering industries, supporting businesses, filling pipelines, and building careers that don’t fit neatly into a corporate organizational chart. They’re doing it because the old systems no longer fit. While the employment model has changed, the policies surrounding it haven’t kept pace.
What solopreneurs need now is structure. We need portable benefits, fair tax treatment, better access to affordable healthcare, and unemployment protections that reflect the real shape of work today.
We need clients who value contracts and timely payment. We need systems built around people, not payroll departments. The work is real. The economic impact is measurable. The only thing left is policy that matches the moment.
Rochelle Ratkaj Moser is the chief creative officer of Ratkaj Designs.
