Congressman Rick Allen's Retire through Ownership Act Signed into Law by President Trump

Yesterday, President Donald J. Trump signed S. 2403 , the Retire through Ownership Act, into law . Congressman Rick W. Allen (GA-12) introduced the House version of this bill last year, which would provide legal and regulatory clarity in the formation of new Employee Stock Ownership Plans (ESOPs). Congressman Allen issued the following statement upon the bill becoming public law: "I recently visited Farmers Home Furniture headquarters in Dublin, Georgia. This innovative company transitioned to 100% employee ownership through an ESOP model in 2013. During my visit, we heard firsthand feedback that the ESOP has undeniably resulted in employee success and retention, in turn allowing the entire company to thrive. That is what the American Dream is all about and exactly why the Retire through Ownership Act is so important. ESOPs are a tried-and-true method for ensuring more Americans can enjoy a secure retirement, and by eliminating the regulatory ambiguity these plans often face, more employees will now share in the success they have helped deliver. I was proud to champion this bill during the 119th Congress and thank President Trump for signing it into law," said Congressman Allen. "The Retire through Ownership Act is about protecting retirement security and preserving jobs in our local communities, and Rep Rick Allen’s leadership addresses a challenge that has hindered employee ownership for decades," said James Bonham, President and CEO of the ESOP Association. "His efforts will give employee owners in Georgia and everywhere greater confidence in how their shares are valued, and business owners a clearer path toward ESOP transitions. We applaud Rep. Allen for helping deliver this commonsense solution." BACKGROUND : On September 16, 2026, the House of Representatives passed S. 2403 with overwhelming bipartisan support, sending it to President Trump's desk. Employee Stock Ownership Plans (ESOPs) let workers build retirement savings by owning stock in their company. When an ESOP buys stock in a private company, an independent appraiser helps determine what that stock is worth. The Department of Labor (DOL) has not yet finalized clear rules for how private company stock should be valued in an ESOP transaction. That leaves ESOP trustees without a clear federal standard to follow when deciding whether the price is fair—creating uncertainty and legal risk for trustees and businesses. S. 2403, the Retire through Ownership Act , gives ESOP trustees a clearer rule to follow: If an independent appraiser follows the Internal Revenue Service’s longstanding guidelines to determine what a company is worth, the ESOP trustee can rely on that appraisal to decide if the price is fair.