TEA Member Advocacy Efforts Lead to Congressional Action on Key Priorities

This year, TEA has been securing vital advancements to our policy agenda thanks to the unprecedented efforts of our members. It's easy to see that when our members engage and advocate for the ESOP community, legislative results are not far behind. Here is an overview of the record-breaking engagement of TEA members and the Congressional actions that followed. 
 

ESOP Advocacy Day Lights A Spark

In May, TEA members came to Washington, DC, in record numbers for our ESOP Advocacy Day, a whirlwind day of meetings with Members of Congress to educate them on employee ownership and advocate for ESOP policy priorities. ESOP Advocacy Day saw a remarkable 87% increase in attendees and a 45% increase in Congressional meetings compared to 2023. Online participation also soared, with nearly 350 advocates sending over 1,000 emails to their Members of Congress, reflecting a 149% increase from 2023. These record-breaking efforts sparked a string of Congressional interest and action in the following months.  
 

TEA's government relations team capitalized on these efforts by conducting thorough follow-ups with congressional offices that supported or sought more information on the policies they discussed with their constituents. We also held personal meetings with more than two dozen offices to provide deeper insights into our legislative agenda. This extensive education campaign ensures our policymakers are informed and equipped to respond to updates such as the upcoming release of the Department of Labor's draft rule on adequate consideration. We couldn't have done it without our members opening so many doors.  
 

ESOP Advocacy Day even inspired action at the state government level. TEA's Wisconsin chapter took the initiative by organizing a lobby day at the State Capitol in Madison. Over 30 TEA members visited all 132 state legislative offices while Wisconsin's Lieutenant Governor Sarah Rodriguez delivered an impactful speech at the chapter's conference. This effort connected legislators from both parties who are invested in employee ownership, laying the foundation for exciting legislation to promote employee ownership in Wisconsin's 2025 legislative session.

Legislative Action Follows

These efforts have yielded significant policy wins for the ESOP community in Congress. As the government funding process continues, we've seen bipartisan support for a fair adequate consideration rule, funding for the Employee Ownership Initiative (EOI), and several other policy priorities.  
 

Some of the specific provisions in current House and Senate funding bills include: 
 

• The Senate Appropriations Committee Fiscal Year 2025 (FY25) Department of Labor funding bill included $2 million for the EOI, directs the Employment and Training Administration (ETA) to administer the grant program and directs the Employee Benefits Security Administration (EBSA) to focus on developing educational materials to promote best practices. 
   
• While the House Appropriations Committee FY25 Department of Labor funding bill didn't include EOI funding, it did note that the DOL has neglected to provide critical regulatory guidance on adequate consideration and asks the Department to prioritize formal rulemaking. In another key provision, the Committee stated its concern about the effect of prolonged EBSA investigations into retirement plan sponsors like ESOPs and ordered the DOL to publicly release a report on all investigations older than 48 months. 
   
• The Senate Appropriations Committee FY25 Financial Services and General Government funding bill includes provisions to create a Coordinator of Employee Ownership at the Small Business Administration (SBA), develop a publicly available toolkit for small businesses on succession planning and employee ownership, and implement the Main Street Employee Ownership Act, offering technical assistance on transitions to employee ownership. 
   

As TEA previously cautioned, this is just the beginning of the FY25 appropriations process. The final versions of the bills will likely undergo significant revisions to reflect the competing fiscal priorities of the Democratic-led Senate and Republican-led House. Nevertheless, TEA remains committed to working with our Congressional champions to secure directed funding for the Employee Ownership Initiative, whether through conference committee negotiations or a continuing resolution. 
 

Finally, the ESOP community's advocacy efforts encouraged a bipartisan group of Senators to send a letter to the DOL with three important requests: 

•  to write a fair adequate consideration rule that promotes employee ownership 
   
• to consult the Department of Treasury in a substantive way, specifically on business valuation matters, as required by law 
   
• to provide a robust public comment period upon the release of the draft rule.  
   

Once again, this outcome was driven by over 700 advocates who sent nearly 1,500 emails to their Senators, prompting 8 Senators to sign the letter. Multiple House Members have also initiated their own outreach to the DOL, reflecting the influence of their constituents' voices. 
 

Moving forward, TEA will leverage the momentum from this year's efforts to fight for a fair adequate consideration rule, secure funding for the Employee Ownership Initiative, and advance vital legislation like the Employee Equity Investment Act (EEIA) to further promote the creation of ESOPs. 
 

None of these accomplishments would have been possible without the tremendous efforts of our members and the entire ESOP community. We appreciate their continued support and look forward to building on these successes in the days ahead.