Funding for Grant Program a Longstanding Priority of The ESOP Association
The U.S. Senate today passed an omnibus appropriations package 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 bipartisan vote of 71-29.
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. 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 also instrumental in securing funding for the EOI.
“Today’s vote once again reinforces the strong, bipartisan momentum for ESOPs and employee ownership in Congress,” said James Bonham, President and CEO of The ESOP Association. “We are grateful to Senators Capito and Baldwin for their efforts to secure funding for the Employee Ownership Initiative, and to Senators Sanders and Moran for their unwavering support of ESOPs.”
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.
Because of changes made by the Senate to the original bill, the package must return to the U.S. House for consideration and final passage, which is expected early next week.
Contact:
Demetrios Karoutsos
dkaroutsos@esopassociation.org
