Aronowitz Stands by Revised EBSA Priorities at House Hearing

Daniel Aronowitz, assistant secretary of labor and head of the Employee Benefits Security Administration, defended the agency’s shift in enforcement priorities during a congressional hearing Thursday.

He argued, in his first congressional hearing since last September, that the changes reflect President Donald Trump’s efforts to restore balance to a system Aronowitz claimed had been distorted by excessive litigation and overregulation.

The hearing displayed partisan disputes and occasional cross-party common ground on how EBSA—the agency responsible for policing employer-sponsored benefit plans covering more than 150 million Americans—has operated during Trump’s second term.

Republicans praised the administration’s efforts to reduce what they described as burdensome investigations. Democrats countered that staffing cuts, relaxed oversight and a retreat from some consumer protections could leave workers more exposed at a time when many families are already struggling with medical costs and financial insecurity. Some of Aronowitz’s work on pharmacy benefits managers’ pricing transparency did receive support from the Democrats.

In Aronowitz’s prepared testimony, he said the administration wanted “more employers to offer more benefits” in what he described as a voluntary system. He also said that the agency is focusing on three goals: clearer rules for plan sponsors; more efficient enforcement; and reducing class action litigation that he said had “stifled innovation and plan design.”

Prior to Thursday’s hearing, EBSA released its enforcement priorities, which, similarly to Aronowitz’s testimony, focused on issuing sub-regulatory guidance and reducing litigation risks for employers.

Defending Recent Rules

Aronowitz testified that the agency’s proposed health transparency rule would give fiduciaries more leverage in negotiating with pharmacy benefit managers and save U.S. workers and the health care system “billions of dollars over the next 10 years.” He also defended the DOL’s recent alternative investment rule, saying it will help fiduciaries diversify plan options without fear of “unfair hindsight and second-guessing of discretionary fiduciary decisions.”

The health transparency rule received a warmer response, since a similar effort was established in the latest Consolidated Appropriations Act. The alternative investments rule, however, has been championed by Republicans and somewhat scorned by the Democrats. The rule came in response to an August 2025 executive order urging the agency to provide fiduciaries a regulatory framework to avoid lawsuits when offering private market assets in defined contribution plans.

Democrats Argue EBSA Caters to Employers

Though Democrats praised Aronowitz in stints, they portrayed the administration’s agenda as favoring employers, insurers and large corporations at workers’ expense. Representative Mark DeSaulnier, D-California, the ranking member, said the agency’s budget and staffing were “woefully inadequate” and criticized Trump’s budget proposal for cutting funding and positions. He warned that workers facing rising prices and economic uncertainty did not need “more risk.”

Trump’s fiscal 2027 budget would cut $10 million from EBSA, bringing its budget to $181 million. He attempted similar cuts for fiscal 2026, but the 2025 government shutdown led to a budget resolution that undid intended cuts to federal agencies.

DeSaulnier also faulted the administration for abandoning what he called an “essential protection” against conflicted financial advice and for opening the door for “high-cost investments, such as crypto[currency] and private equity” to be added into workers’ 401(k) plans.

Under Aronowitz, EBSA stopped defending former President Joe Biden’s fiduciary rule, and it was ultimately vacated in court last month. The rule would have provided a new fiduciary standard that expanded fiduciary obligations under the Employee Retirement Income Security Act to include professionals providing one-time professional retirement investment advice. This included recommendations on rollovers, annuity purchases and plan menu design.

On the budget cuts, Aronowitz insisted that one consumer-facing program was expanding, not shrinking. Referring to benefits advisers who help workers navigate health and retirement benefit disputes, he said, “We just hired 40 new benefit advisers. We had 74. We just added 40, and we’re not done.”

Criticism on Mental Health Parity, Amicus Briefs

Democrats questioned Aronowitz repeatedly about mental health parity, denied medical claims, missing retirement participants and the agency’s use of court filings in support of employers in benefits litigation.

Under Aronowitz, EBSA has repeatedly filed amicus briefs to opine on common ERISA disputes. EBSA has filed briefs siding with employers on pension risk transfers and retirement plan forfeitures. Aronowitz has repeatedly stated that pension risk transfers and using forfeitures to offset employer contributions are authorized under ERISA.

In another major change, in May 2025, EBSA announced it would no longer enforce the Mental Health Parity Act and Equity Addiction Act finalized in 2024 under Biden. EBSA finalized the rule in September 2024 with the goal of expanding access and lowering costs for mental health and substance abuse disorder care.

Aronowitz denied that the administration is retreating from mental health enforcement, saying. He described his own family’s struggles with treatment access and told lawmakers, “You have my commitment that I will knock down every barrier to good mental health treatment for all American workers and their families.”

He cited a $28 million settlement EBSA secured in February with Kaiser Foundation Health Plan Inc., which agreed to reform its mental health and substance-use disorder services as a result of the settlement.

Still, lawmakers from both parties agreed on one area: health care transparency, in which Aronowitz said the goal is “to hold health care companies accountable.”

In the meantime, Aronowitz said EBSA needed time to achieve its intended results on the various retirement issues, such as mental health parity, which has not yet received a replacement rule.

“I cannot wait to show you what we’re going to do to break down barriers to mental health and what we do on mental health parity,” he said. “Just give me a chance.”