WASHINGTON D.C. – Today, Representatives Mike Kelly (R-PA) and Jimmy Panetta (D- CA) introduced legislation in the House of Representatives to grow and promote employee ownership through private ESOPs (Employee Stock Ownership Plans), a proven way to create stable jobs, build retirement wealth, and promote business growth. The Promotion and Expansion of Private Employee Ownership Act of 2025 would encourage S corporation business owners to form an ESOP, especially when looking to transition ownership. Additionally, the bill would:
- Provide needed technical assistance for companies that may be interested in forming an ESOP;
- Ensure small businesses that become ESOP-owned retain their SBA certification;
- Create an Advocate for Employee Ownership at the U.S. Department of Labor.
“Employee Stock Ownership Plans (ESOPs) empower hardworking Americans to achieve financial prosperity and secure their retirement while helping their companies grow and thrive,” said Stephanie Silverman, President and CEO of the Employee-Owned S Corporations of America (ESCA). “With job stability and economic growth a top priority for all workers, creating additional employee ownership opportunities is one way Congress can help more Americans retire with confidence and weather economic uncertainty.”
At introduction, Representatives Kelly and Panetta were joined by six original cosponsors on the House Ways & Means Committee: Reps. Ron Estes (R-KS), Brad Schneider (D-IL), Carol Miller (R-WV), Danny Davis (D-IL), Blake Moore (R-UT) and Terri Sewell (D-AL). ESCA applauds Rep. Kelly and Rep. Panetta for their bipartisan leadership and looks forward to continuing to work together to encourage more private employee ownership. As more Americans worry about their ability to retire with dignity, this legislation offers a practical, bipartisan solution.
“By expanding Employee Stock Ownership Plans (ESOPs), we can put more hardworking Americans on the path to financial prosperity and a secure retirement,” said Rep. Kelly. “This bipartisan, bicameral plan is a win-win for workers and businesses: it allows businesses to include employee ownership in the compensation package, and ESOPs often retain more employees as a result. This is great legislation for both the employer and employee alike!”
“Too many hardworking Americans are approaching retirement without financial security and peace of mind,” added Rep. Panetta. “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. When employees have ownership, businesses do better, communities grow stronger, and our economy becomes more resilient.”