House Bill Seeks to Codify Trump’s Order on 401(k) Alternative Assets

On Tuesday, Oct. 14, U.S. Congressman Troy Downing (R-Montana) introduced the Retirement Investment Choice Act (House of Representatives Bill 5748), which seeks to codify President Donald Trump’s Executive Order (EO) 14330 (“Democratizing Access to Alternative Investments for 401(k) Investors”).

Downing’s bill formally directs the Department of Labor (DOL) and Securities and Exchange Commission (SEC) to reduce regulatory barriers that prohibit investments such as private equity, real estate and cryptocurrency from being eligible for inclusion in Americans’ 401(k) retirement plans. Basically, it seeks to enforce EO 14330 as law.

Legislation cosponsors include Byron Donalds (R-Florida), Warren Davidson (R-Ohio), Marlin Stutzman (R-Indiana), Buddy Carter (R-Georgia) and Barry Moore (R-Alabama). No companion bill has been proposed in the Senate.

While the House bill’s text has yet to be formally entered onto Congress.gov, Downing provided a link to the one-page document on his personal website.

The Congressman has been a strong supporter of EO 14330, stating, “Alternative investments hold the transformative potential to supercharge the financial security of countless Americans saving for retirement.”

The Aug. 7 EO required the DOL to take decisive action steps within 180 days. Specific requirements included:

• The DOL and SEC issuing guidance to employers about providing access to these alternative investments in their retirement account offerings;
• Labor Secretary Lori Chavez-DeRemer reexamining the guidance on fiduciary duties within the Employee Retirement Income Security Act of 1974 (ERISA) regarding alternative asset investments; and,
• Chavez-DeRemer working with Treasury Secretary Scott Bessent and the SEC to determine what regulatory changes can be made.

However, the current government shutdown and severe federal staffing cuts, including those at the DOL’s Employee Benefits Security Administration (EBSA), may impede this timeline and limit plan formation and implementation.

SEC chairman Paul Atkins said in late September that his commission and the DOL began coordinating on rulemaking efforts. To this point, the DOL has retracted (on Aug. 12) guidance that cautioned plan fiduciaries from considering alternative assets in 401(k) retirement plan investment menus.

Downing’s bill has been referred to two House committees — Education and Workforce, as well as Financial Services — for examination and determination of next steps.

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