Funding for Grant Program a Longstanding Priority of The ESOP Association
President Trump today signed the Consolidated Appropriations Act, 2026 (H.R. 7148) into law, which includes a joint explanatory statement directing $2 million in funding for the Employee Ownership Initiative (EOI) grant program at the Department of Labor (DOL).
The Employee Ownership Initiative has long been a priority of The ESOP Association and was originally championed by Senators Bernie Sanders (I-VT) and Jerry Moran (R-KS) as part of the Worker Ownership, Readiness and Knowledge (WORK) Act, which passed as part of the SECURE 2.0 Act in December of 2022. The bipartisan efforts of Senators Shelley Moore Capito (R-WV) and Tammy Baldwin (D-WI), the Chair and Ranking Member of the Senate Appropriations subcommittee responsible for the DOL, were instrumental in securing funding during the appropriations process.
“Funding for The Employee Ownership Initiative grant program would not be possible without strong bipartisan cooperation and effort,” said James Bonham, President and CEO of The ESOP Association. “It’s a great milestone for the employee ownership movement as the program may now officially begin its duties as required under the WORK Act. Now that the EOI has been funded, we look forward to securing continued support during the budget process in FY27 and beyond.”
Joint explanatory statements, often called committee reports, accompany appropriations bills and provide instructions on how federal agencies should spend funds appropriated by Congress. While the statement does not carry the force of law, it represents the House and Senate’s bipartisan agreement that the DOL should fund and administer the EOI grant program. These statements are routinely followed by federal agencies to implement similar programs.
The ESOP Association worked closely with appropriators to secure the funding for the EOI’s grant program, housed within the Department of Labor, to “establish and expand employee ownership programs”. The EOI is the first federal program at the Department of Labor specifically dedicated to promoting employee ownership. Its establishment and funding are a priority for The ESOP Association to help increase awareness of and promote ESOPs and employee ownership in America. Fiscal year 2027 is the first year the program will receive grant funding, creating a baseline for future efforts.
The joint explanatory statement also specifically directs the Employment and Training Administration (ETA) at the DOL to administer the grant program, while directing the Employee Benefits Security Administration (EBSA) to focus on developing educational materials to promote best practices. Under the grant program as authorized by Congress, states will be eligible to apply for funds to support existing programs and facilitate the formation of new programs designed to promote employee ownership, including education and outreach, technical assistance, and training. The DOL will first need to issue formal guidance on the types of programs at the state level that will be eligible for future grants, as required by law.
Contact:
Demetrios Karoutsos
dkaroutsos@esopassociation.org
