U.S. Representatives Mike Kelly and Jimmy Panetta have introduced bipartisan legislation aimed at enhancing retirement security through the expansion of private Employee Stock Ownership Plans (ESOPs). The newly proposed bill, titled The Promotion and Expansion of Private Employee Ownership Act of 2025, seeks to promote employee ownership as a means to create stable jobs, build retirement wealth, and foster business growth.
Representative Kelly emphasized the potential benefits of the bill stating, “By expanding Employee Stock Ownership Plans (ESOPs), we can put more hardworking Americans on the path to financial prosperity and a secure retirement.” He highlighted the positive impacts of such plans on both employees and businesses, mentioning that ESOPs can lead to greater employee retention by integrating ownership into compensation packages.
Echoing these sentiments, Representative Panetta noted, “Too many hardworking Americans are approaching retirement without financial security and peace of mind. By helping businesses become employee-owned through their retirement plans, this bipartisan bill would give workers a stake in their company and a stronger path to build savings.”
Stephanie Silverman, President and CEO of the Employee-Owned S Corporations of America, also expressed support for the legislation. “Employee Stock Ownership Plans (ESOPs) empower hardworking Americans to achieve financial prosperity and secure their retirement while helping their companies grow and thrive,” Silverman stated. She further stressed the importance of creating more opportunities for employee ownership to ensure economic stability and growth.
The proposed act aims to encourage S corporation business owners to establish ESOPs, particularly during ownership transitions. Key provisions of the bill include providing technical assistance to companies interested in forming ESOPs, ensuring that small businesses retain their SBA certification after becoming ESOP-owned, and establishing an Advocate for Employee Ownership at the U.S. Department of Labor.
The introduction of the bill saw support from six original cosponsors within the House Ways & Means Committee, namely Representatives Ron Estes, Brad Schneider, Carol Miller, Danny Davis, Blake Moore, and Terri Sewell.
