House Passes Retire Through Ownership Act 401 to 14 to Expand Employee Stock Ownership Plans

The U.S. House of Representatives passed the Retire Through Ownership Act on September 16, 2026, by a vote of 401 to 14, sending the bipartisan legislation to the president for signature.

The bill amends the Employee Retirement Income Security Act of 1974, known as ERISA, to provide clear guidelines for valuing employer stock in Employee Stock Ownership Plans, or ESOPs. Under the legislation, ESOP fiduciaries can rely in good faith on a valuation provided by an independent professional business appraiser, using the methodologies set out in IRS Revenue Ruling 59-60.

Supporters say the bill removes a major source of legal uncertainty that has discouraged companies from setting up ESOPs. Without clear standards, fiduciaries faced potential liability even when they acted in good faith, because courts and regulators applied different interpretations of what constituted adequate consideration for ESOP stock.

The Senate passed its version of the bill, S. 2403, by unanimous consent in October 2025. The House passed the Senate version directly, avoiding a conference committee.

ESOPs allow employees to own shares in the company where they work, often as part of a retirement benefit. Advocates say employee ownership improves worker retention, productivity, and long-term wealth building, particularly for workers who do not have access to traditional pension plans.

The legislation was introduced in the House by Congressman Rick Allen of Georgia and in the Senate by Senators Roger Marshall of Kansas and Tim Kaine of Virginia. The wide bipartisan margin in the House reflects broad support for expanding employee ownership as a retirement savings tool.