House Passes Retire Through Ownership Act, Clearing Path for More ESOP Formation

NewsData.io · United States · Sep 16, 2026

The U.S. House passed the Retire Through Ownership Act (S. 2403) by a 401-14 vote, sending the bill to President Trump after the Senate passed it unanimously in October 2025. The legislation establishes clear valuation standards for privately held ESOP stock under ERISA, allowing fiduciaries to rely in good faith on independent appraisers using IRS Revenue Ruling 59-60 methodology. For staffing and recruiting firms, the removal of decades-long ESOP formation barriers could accelerate employee-ownership succession deals among client companies, affecting workforce transition planning and hiring patterns. The ESOP Association led a multi-year advocacy campaign to secure passage.