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Compliance October 10, 2025
ESOP Bills Pass Senate By Unanimous Vote
Daniel Aronowitz, the recently confirmed head of the Employee Benefits Security Administration, has also expressed support for employee stock ownership plans.
Reported by James Van Bramer
The Senate unanimously approved two bills related to employee stock ownership plans on Thursday.
The unanimous support mirrors the bipartisan support the legislation received in the Senate Committee on Health, Education, Labor and Pensions, which advanced the bills unanimously in July.
The vote means both the Retire Through Ownership Act and the Employee Ownership Representation Act of 2025 clear one hurdle, as the bills would also need to clear the House of Representatives before they would advance to President Trump to consider signing them into law.
The Retire Through Ownership Act was unanimously passed by the House Committee on Education and Workforce in September.
Introduced by Representative Roger Marshall (R-Kansas), the Retire Through Ownership Act aims to mitigate valuation risk for ESOPs by aligning their valuations with IRS standards. This legislation offers a “safe harbor” for trustees relying on certified appraisers who use these guidelines.
The Employee Ownership Representation Act of 2025 proposes to expand the ERISA Advisory Council by adding two representatives of ESOP interests. Currently composed of 15 members from business, labor, and the public, the council lacks ESOP representatives.
Daniel Aronowitz, who was recently confirmed as the head of the Employee Benefits Security Administration, has expressed his support for ESOPs.
The ESOP Association, which launched a paid campaign to advocate for Aronowitz’s confirmation, has supported the legislation since its introduction, and lauded the Senate’s bipartisan support for the bills.
“The Senate’s unanimous passage of the Retire Through Ownership Act is a landmark moment for ESOPs,” said James Bonham, President and CEO of The ESOP Association in a statement. “The Senate has spoken with one clear voice on legislation that will help eliminate regulatory uncertainty and ensure that ESOPs and trustees who follow clear rules will not be subject to needless litigation and harassment by the government and plaintiffs’ bar.”