Trump Signs ESOP ‘Ownership’ Bill

Legislation establishing a standard valuation framework for employee stock ownership plans was signed into law on Thursday by President Donald Trump.

The Retire Through Ownership Act addresses a litigation risk for companies—instances when ESOP participants have alleged improper valuation of company stock or insider benefit from a transaction. The new law allows ESOP fiduciaries to rely in good faith on a valuation provided by an independent professional valuation expert or business appraiser who follows the principles of IRS Revenue Ruling 59-60, which outlines the factors qualified appraisers should consider when determining fair market value.

The Senate bill was introduced by Senators Roger Marshall, R-Kansas, and Tim Kaine, D-Virginia, in July 2025, and passed by unanimous vote that October. Representative Rick Allen, D-Georgia, introduced a separate version of the bill to the House of Representatives, but the House passed the Senate version by a vote of 401 to 14 on September 16, 2026.

James Bonham, president and CEO of the ESOP Association, an interest group that had long advocated for the bill, released a statement Thursday calling the legislation the “most important ESOP law enacted in decades.”

Last year, according to law firm Encore Fiduciary, there were 14 lawsuits targeting ESOP valuation and 11 settlements ranging from $450,000 to $84 million.

Daniel Aronowitz, the assistant secretary of labor for the Employee Benefits Security Administration, said during his confirmation hearing last year that he would “end the war on ESOPs.” In January, the Department of Labor stated that ESOPs were no longer an enforcement priority.

The ESOP Association ran a paid campaign last year in support of Aronowitz’s confirmation.

1 Social Security Bill Signed, 1 to Go

Meanwhile, on October 7, Trump signed the Improving Social Security’s Service to Victims of Identity Theft Act, which sets up a single point of contact at the Social Security Administration for people who lost their Social Security card or had their Social Security number misused.

Another Social Security-related bill passed by Congress, the Social Security Claiming Age Clarity Act, was still awaiting Trump’s signature as of Friday afternoon. The bill would change the phrasing for when one first claims Social Security from “early, full and delayed retirement” age to “minimum, standard and maximum monthly benefit” age, to stress and indicate the financial implications of the different options.

While Congress has introduced several bills to address the broader problem of Social Security depleting its Old-Age and Survivors Insurance Trust Fund, none have left committee. Social Security is currently expected to reach insolvency in the third quarter of 2032, which would lead to an estimated 22% immediate reduction in benefits, according to the SSA’s board of trustees’ June report, with further reductions to follow.