Scott Perry (R-PA)
Employee Ownership Fairness Act of 2026
A Republican bill with no cosponsors
Last activity — Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Employee Ownership Fairness Act of 2026 aims to amend the Employee Retirement Income Security Act of 1974. It focuses on changing how contributions are counted for employee stock ownership plan (ESOP) participants. The bill seeks to allow these workers to benefit from the full amount of beneficial ownership in their plans. It also intends to help them realize the benefits of saving for retirement in defined contribution plans. This is intended to prevent company success from causing other plan contributions to exceed annual caps.
Yes· 3 of 8
- Scored +4
Would middle-income households be better off under this?
The bill specifically helps employees in profitable companies maximize their retirement contributions and diversification.
- Scored +3
Would people over 65 be better off under this?
The bill enhances retirement savings potential which benefits those approaching or in retirement.
- Scored +3
Would business owners be better off under this?
The bill provides more flexibility for employers managing ESOPs and matching contributions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Improved Diversification and Savings: The bill addresses issues where ESOP employees are unable to make full use of defined contribution plans because company success causes their ESic balance to exceed annual caps. This change aims to allow employees to better diversify their retirement savings (Section 2, Findings (5) and (7)).
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Increased Contribution Ability: By amending the Internal Revenue Code, the bill ensures that contributions of employer stock or contributions made to repay loans used to acquire employer securities are not included when applying certain contribution limits. This can prevent employers from having to deny matching contributions that employees would otherwise receive (Section 2, Findings (7); Section 3(a)(1); Section 3(b)(1)).
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Separate Application of Limits: The bill requires that limitations be applied separately to an ESOP and any other defined contribution plan held by the employer. This allows for more flexibility in how retirement savings are managed and contributed (Section 3(a)(2); Section 3(b)(2)).
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Treatment of Forfeitures: The bill specifies that forfeitures allocated to accounts under an ESOP shall not be taken into account as annual additions, which assists in the management of the plan's contributions (Section 3(a)(3); Section 3(b)(4)).
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — The bill specifically helps employees in profitable companies maximize their retirement contributions and diversification. Would business owners be better off under this? — The bill provides more flexibility for employers managing ESOPs and matching contributions. Would retired people be better off under this? — The bill enables more effective retirement savings and diversification for plan participants. Would people over 65 be better off under this? — The bill enhances retirement savings potential which benefits those approaching or in retirement. Would households on low incomes be better off under this? — The bill helps workers with less capital acquire ownership stakes in their companies. Would union members be better off under this? — The bill increases the financial benefit and retirement security of workers in ownership-oriented enterprises.
- Economy And Finance
- Is this likely to grow the economy? — The bill aims to incentivize investment and economic growth by improving the efficiency of employee stock ownership plans.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — By allowing better diversification and full realization of retirement benefits, the bill helps secure long-term financial stability for workers.
- 7/20/2026
- Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.