Bill > S2458

This bill establishes a comprehensive framework to promote employee ownership in the United States by creating several key mechanisms. The bill creates an Office of Employee Ownership within the Department of Labor, led by a Director appointed by the Secretary of Labor, which will be responsible for implementing the Employee Ownership Initiative and an Employee Ownership Loan Program. The loan program will provide loans and loan guarantees to eligible entities like employee stock ownership plans (ESOPs) and worker-owned cooperatives, with the goal of helping companies become at least 51% employee-owned. These loans can be used to purchase company equity, increase employee ownership levels, or expand operations. The bill includes specific requirements for loan recipients, such as establishing employee engagement committees, providing quarterly company updates to employees, and offering diversified retirement investment options. Additionally, the legislation creates an Advisory Council on Employee Ownership with seven members representing employees, companies, and ESOP providers, and introduces a new provision requiring employers to offer employees the right of first refusal to purchase a facility before permanently closing it. The bill authorizes $500 million for the loan program in fiscal year 2026 and additional funds for administrative costs, demonstrating a significant federal commitment to expanding employee ownership opportunities across the United States.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/2458/all-info