On January 15, 2026, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) officially ended the National Enforcement Project against ESOPs, an initiative that began in 2005. This important development follows a series of meetings between The ESOP Association (TEA) and Department of Labor leadership on opportunities to promote ESOPs and helps ensure that federal policy and oversight align with the proven benefits ESOPs deliver for workers, businesses, and communities.
TEA has been requesting an end to this decades-long and unnecessary effort at EBSA as part of its effort to reverse what has long been perceived as its anti-ESOP bias. EBSA’s decision marks an important step toward a more balanced approach that both protects plan participants and recognizes the strength and legitimacy of the ESOP model.
Jim Bonham, President and CEO of The ESOP Association, welcomed the announcement and emphasized what it represents for the ESOP community: “We are grateful that the DOL and EBSA have taken this important step. This decision shows that DOL’s leadership is taking action on its promise to ‘end the war on ESOPs.’” During his confirmation process in the U.S. Senate, Daniel Aronowitz, nominee for Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA) said he would “end the war on ESOPs.”
Ending the National Enforcement Project against ESOPs also creates momentum for additional efforts to support employee ownership. “EBSA’s decision should be a clear, unmistakable signal to both the ESOP community and those considering forming an ESOP that the future is bright,” continued Bonham.
TEA will continue to keep its members informed as we build on this progress.
Members can view EBSA’s full release here: https://www.dol.gov/newsroom/releases/ebsa/ebsa20260115
