House Appropriations Committee Language Urges Commerce Department to Support Employee Ownership

In language in the committee report on the fiscal year 2027 appropriations bill, the House Committee on Appropriations urged the Department of Commerce to take steps to promote employee ownership, writing:

Employee Stock Ownership Plans (ESOPs).—The Committee recognizes that ESOPs can be an effective tool for retaining American companies, especially those undergoing business succession. The Committee notes the private financing gap may impede the growth of ESOPs among small- and medium-sized businesses, especially those in industries critical to economic and national security. The Committee encourages the Department to assess opportunities to address this financing gap.

Report language is taken seriously by the agency receiving the appropriation, but it does not represent a statutory requirement. The Department of Commerce could choose to support legislation on this subject, especially the American Ownership and Resilience Act, which would create government guarantees for specialized loans to help finance ESOPs.