Program is designed to protect American jobs and manufacturing over the next ten years as 2.5 million baby boomer business owners retire
The U.S. Senate Committee on Health, Education, Labor & Pensions (HELP) today approved an amendment to S. 3333, the Emergency Savings Enhancement Act, that would greatly expand the reach of the Employee Ownership Initiative grant program at the Department of Labor (DOL) by adding $78 million in mandatory spending in FY 2027 through 2032. The bipartisan amendment, offered as a substitute by HELP Chairman Bill Cassidy, also extends the grant program by six years through Fiscal Year 2035 and expands discretionary funding by $63 million, bringing total funding to $180 million through Fiscal Year 2035.
“We are deeply grateful to Chairman Cassidy and Ranking Member Sanders for working with The ESOP Association to expand the reach of the Employee Ownership Initiative at DOL,” said James Bonham, President and CEO of The ESOP Association. “Addressing the wave of retiring baby boomers who must transition their businesses to new owners in the next ten years is reaching a crisis level. Nearly 1 out of every 6 American jobs is at risk in this transition. By dramatically raising awareness of ESOPs, Congress is recognizing that the best way to keep these jobs in our local economies is to encourage business owners to sell to their employees through an Employee Stock Ownership Plan rather than selling out to a foreign investor or private equity.”
The Employee Ownership Initiative was initially created by the bipartisan WORK Act, which was included in broader SECURE 2.0 legislation that passed at the end of 2022. Passage of the WORK Act was a major priority of The ESOP Association and was originally sponsored by Senators Bernie Sanders (I-VT) and Jerry Moran (R-KS). The goal of the Employee Ownership Initiative is to promote employee ownership, including through state grants for education, programs, and feasibility studies. The original legislation authorized $50 million over five years for the establishment of a grant program for states and localities to use for education, outreach and promoting awareness of ESOPs.
Click here for the full text of the Cassidy amendment to S. 3333. >>
