Bill

Bill > HR6492


US HR6492

US HR6492
ESOP Act Empowering Small-business Ownership Participation Act


summary

Introduced
12/05/2025
In Committee
12/05/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To change the percentage of outstanding stock that must be held through an employee stock ownership plan for the purposes of the pilot program to incentivize contracting with employee-owned businesses of the Department of Defense, and for other purposes.

AI Summary

This bill modifies the National Defense Authorization Act for Fiscal Year 2022 to adjust requirements for employee stock ownership plan (ESOP) businesses in the Department of Defense's pilot program. Specifically, the bill changes the stock ownership percentage requirement from 100% to at least 30%, and removes the term "wholly-owned" when describing employee-owned businesses. An ESOP is a benefit plan that gives employees ownership interest in the company, typically through stock shares. By lowering the stock ownership threshold, the bill aims to make it easier for more small businesses with employee stock ownership to participate in Department of Defense contracting opportunities. The bill, also known as the ESOP Act, seeks to broaden the definition and accessibility of employee-owned businesses in government contracting, potentially providing more opportunities for small businesses with shared employee ownership structures.

Committee Categories

Military Affairs and Security

Sponsors (1)

Last Action

Referred to the House Committee on Armed Services. (on 12/05/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...