Passage Would Be the Final Step Before the President Can Sign the Bill Into Law
The U.S. House of Representatives is expected to vote next week on the Retire Through
Ownership Act (S. 2403), bringing a major priority of The ESOP Association one step closer to
becoming law.
The bill was added to the House Floor schedule for the week of September 14 under
suspension of the rules, a procedure generally reserved for broadly supported, bipartisan
legislation.
The Retire Through Ownership Act has already received unanimous support at every stage of
the legislative process. The Senate passed the bill unanimously on October 9, 2025, while the
House Committee on Education and the Workforce voted 35–0 to advance the House version of
the legislation on September 17, 2025.
When the House passes the Senate-approved bill it will advance to the President to be signed
into law.
Sponsored in the Senate by Sen. Roger Marshall (R-KS) and Sen. Tim Kaine (D-VA) and Rep.
Rick Allen (R-GA) in the House, the Retire Through Ownership Act provides essential clarity on
the issue of adequate consideration and will strengthen the foundation of employee ownership
and ESOPs in America. The bill would allow an ESOP plan fiduciary to rely in good faith on an
independent professional business appraiser who uses the longstanding, widely accepted
valuation practices described in IRS Revenue Ruling 59-60.
The ESOP Association has strongly supported the Retire Through Ownership Act since its
inception and urges every Member of the House to vote for its passage. This vote represents an
historic opportunity for Congress to provide long-overdue regulatory certainty, strengthen
existing ESOPs, and encourage the continued growth of employee ownership across America.
The Association will continue closely monitoring the bill and will provide members with an
update following the House vote.
