S. 2403: Retire through Ownership Act

What it does

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Retire through Ownership Act

This bill allows the fiduciary of an Employee Stock Ownership Plan (ESOP) to rely on a valuation provided by an independent valuation expert or business appraiser in determining the fair market value of the plan's assets if the assets are not securities for which there is a generally recognized market and the expert or appraiser follows specified methodologies.

In general, ESOPs are defined contribution pension plans where employees accrue shares of their employers' stock in individual accounts as part of their compensation. After separating from employment or retiring, employees receive the cash value of their shares.

Under the bill, an independent expert or appraiser must adhere to the methodology established under the Internal Revenue Service Ruling 59-60, which prescribes the factors a professional business appraiser should consider in forming a valuation of the stock for a closely held business.

Official summary by the Congressional Research Service (Passed Senate, Oct 9, 2025).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

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2026-10-15Became Public Law No: 119-124.Library of Congress
2026-10-15Became Public Law No: 119-124.Library of Congress
2026-10-15Signed by President.Library of Congress
2026-10-15Signed by President.Library of Congress
2026-10-05Presented to President.House floor actions
2026-10-05Presented to President.Library of Congress
2026-09-16Motion to reconsider laid on the table Agreed to without objection.House floor actions
2026-09-16On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 401 - 14 (Roll no. 314). (text: CR H5905) Roll call recordHouse floor actions
2026-09-16Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 401 - 14 (Roll no. 314). (text: CR H5905) Roll call recordLibrary of Congress
2026-09-16Considered as unfinished business. (consideration: CR H5960)House floor actions
2026-09-16At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.House floor actions
2026-09-16DEBATE - The House proceeded with forty minutes of debate on S. 2403.House floor actions
2026-09-16Considered under suspension of the rules. (consideration: CR H5905-5906)House floor actions
2026-09-16Mr. Walberg moved to suspend the rules and pass the bill.House floor actions
2025-10-17Held at the desk.House floor actions
2025-10-17Received in the House.House floor actions
2025-10-16Message on Senate action sent to the House.Senate
2025-10-09Passed Senate with an amendment by Unanimous Consent. (consideration: CR S7103; text: CR S7103)Senate
2025-10-09Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.Library of Congress
2025-09-11Placed on Senate Legislative Calendar under General Orders. Calendar No. 158.Senate
2025-09-11Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.Senate
2025-09-11Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.Library of Congress
2025-07-30Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.Senate
2025-07-23Read twice and referred to the Committee on Health, Education, Labor, and Pensions.Senate
2025-07-23Introduced in SenateLibrary of Congress

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Cosponsors

Sen. Tim Kaine D-VA