Funding for Grant Program a Long-Term Priority of The ESOP Association
The U.S. House of Representatives today passed The Consolidated Appropriations Act, 2026 (H.R. 7148) 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 legislation passed by a strong bipartisan vote of 341-88.
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 SECURE 2.0 in December of 2022.
“Funding the Employee Ownership Initiative is vital to creating and growing employee-owned companies and increasing awareness of ESOPs as an attractive option for business owners,” said James Bonham, President and CEO of The ESOP Association. “We are grateful to appropriators who recognize the value and importance of employee ownership, and for the bipartisan support for the program in Congress.”
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 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.
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 is a priority for The ESOP Association to help increase awareness of and promote ESOPs and employee ownership in America.
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 for grant recipients, as required by the law.
The U.S. Senate is expected to vote on this legislation next week. If approved, the bill will go to President Trump’s desk to be signed into law.
Contact:
Demetrios Karoutsos
dkaroutsos@esopassociation.org
