For fifty years, the hardest question in employee ownership was not how to finance the deal or how to structure the tax benefits. It was what "adequate consideration" actually meant. Congress has now answered it ā and the answer is narrower, and more useful, than the headlines suggest.
ESOP financing has been one of the biggest obstacles for business owners considering employee ownership. In 2026, that's starting to shift, from how banks structure loans to how Washington is treating ESOP oversight.
Recent developments in Washington, D.C. and the lending marketplace point to growing momentum for employee ownership. From proposed legislation and regulatory support to increased bank participation, ESOPs continue to strengthen as a succession planning and wealth-building strategy.
The Department of Laborās latest guidance signals a decisive shift in EBSA enforcement priorities. For ESOP companies, this means a move away from unpredictable, litigation-driven oversight toward a more transparent, principles-based framework grounded in fiduciary law.
On January 15, 2026, the U.S. Department of Laborās Employee Benefits Security Administration (EBSA) quietly did something the ESOP community has been asking forāloudlyāfor years. It changed course. In a major overhaul of its national enforcement projects for fiscal year 2026, EBSA removed Employee Stock Ownership Plans (ESOPs) from its list of national enforcement priorities.…
In a powerful bipartisan moment for worker-ownership advocates, the U.S. Senate Health, Education, Labor & Pensions (HELP) Committee voted unanimously on July 31 to advance two major bills promoting and protecting Employee Stock Ownership Plans (ESOPs): the Retire Through Ownership Act (S. 2403) and the Employee Ownership Representation Act (S. 1728). Together, these bills represent…
Update (July 31, 2025): The Senate HELP Committee has now unanimously passed the ESOP bills discussed in this hearing. [Read the follow-up here ā] On July 24, 2025, the Senate Committee on Health, Education, Labor, and Pensions (HELP) convened a powerful and bipartisan hearing under the banner: āEmpowering Workers by Expanding Employee Ownership.ā With support…
And the Senate Follows Up With a Powerful Push to Expand Employee Ownership Washington, D.C. ā July 22, 2025ā This week marked a historic moment for the employee ownership movement. On Tuesday, the House Education and Workforce Committee held a hard-hitting oversight hearing scrutinizing the Department of Laborās Employee Benefits Security Administration (EBSA) for what…
On June 11, 2025, Oregon made history for employee ownership. Governor Tina Kotek signed House Bill 3646 into law, creating a formal preference in public procurement for companies that are majority-owned by their employeesāeither directly or through an Employee Stock Ownership Plan (ESOP). Starting in 2026, Oregon state agencies will be able to give these…
In a rousing keynote address to The ESOP Association, newly confirmed Secretary of Labor Lori Chavez-DeRemer signaled a sea change in federal policy toward Employee Stock Ownership Plans (ESOPs). Her remarks marked the strongest pro-ESOP stance from a sitting Labor Secretary in recent memoryāand possibly ever. Secretary of Labor Lori Chavez-DeRemer at The ESOP Association’s…
Big news is brewing in Washington that could reshape the landscape for ESOP-owned companies The Employee Ownership Fairness Act of 2025, recently introduced in Congress, proposes substantial increases in ESOP contribution limits and ESOP participant allocation limitsāchanges that would be wholly positive for companies, owners, and employee participants alike. The proposed Employee Ownership Fairness Act…
Congress is continuing its support for employee ownership in general and ESOPs in particular with the introduction of bipartisan legislation designed to simplify the process of establishing Employee Stock Ownership Plans (ESOPs) for S-Corps. The Promotion and Expansion of Private Employee Ownership Act aims to address the barriers that have historically hindered S-Corp companies from…
Employee ownership is a powerful force for financial well-being and Employee Stock Ownership Plans (ESOPs) benefit both business owners and employees. The US Federal government recognized these factors in the 2023 national budget by including support for provisions dedicated to spurring ESOPs and Congress has introduced bi-partisan measures to advance employee ownership. The drumbeat of…
In recent years, there has been a growing emphasis on promoting employee ownership in the United States. This focus has been championed by Congressional leaders and various states who recognize the numerous benefits that employee ownership can bring to businesses and their workforce. Earlier in 2023, the passage of the WORK and SECURE 2.0 Acts…
A new comprehensive tax reform proposal was introduced by House Ways and Means Committee Chairman Dave Camp on February 26th, 2014.Ā Campās proposal would cut the tax rate for C corporations to 25% over a period of five years. Ā It would also cut individual tax rates to two brackets (10% and 25%), but it would…