Sponsors (5)
The bill builds federal infrastructure and financial support to expand employee ownership and preserve jobs—giving workers more voice and paths to ownership—but it does so by creating new agencies and spending that increase taxpayer exposure, add compliance burdens, and introduce coordination and politicization risks.
Small-business owners and employees can access up to $500 million in loans and loan guarantees to finance conversions to employee ownership or buyouts, making many conversions financially feasible.
Workers at participating firms gain clearer access to employee ownership options and expanded pathways to become owners, which can increase stakes in workplace decisions, job stability, and potentially wages for affected employees.
Employees at recipient companies receive stronger governance and disclosure rights (employee-majority committees, quarterly progress information, trustee voting, independent board members, and required financial disclosures), improving transparency and worker voice in converted firms.
Taxpayers face meaningful financial exposure because the $500 million loan/guarantee program and related administrative costs could produce loan losses, credit risk, and ongoing spending without dedicated offsets.
The creation of a new federal Office, Director, staff, and advisory Council increases federal administrative costs and per‑diems/travel expenses paid by taxpayers.
Putting the Office outside existing oversight (and tying program definitions to Internal Revenue Code provisions) risks duplication, coordination issues with current benefit regulators, and implementation complexity if tax law changes.
Based on analysis of 8 sections of legislative text.
Creates a DOL office and $500M loan program to finance ESOPs and worker cooperatives, adds a WARN right of first refusal, and sets governance and regulatory rules.
Introduced July 24, 2025 by Bernard Sanders · Last progress July 24, 2025
Creates an Office of Employee Ownership in the Department of Labor and a federally backed loan program to help businesses convert to or expand employee ownership through ESOPs and worker cooperatives. It amends worker‑notice rules to give employees a right of first refusal when an employer plans a permanent plant closing, sets governance and employee‑engagement conditions for loan recipients, establishes an advisory council, requires regulations within one year, and provides initial funding for loans and program setup.