U.S. Senator Steve Daines joined a bipartisan group of senators in urging the U.S. Department of Labor to quickly implement President Trump’s recent Executive Order expanding access to alternative investments for Americans with 401(k) and other defined-contribution retirement plans.
The letter, sent to Labor Secretary Lori Chavez-DeRemer, was also signed by Senators Markwayne Mullin (R-Okla.), Jim Banks (R-Ind.), Bernie Moreno (R-Ohio), Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), Katie Britt (R-Ala.), Eric Schmitt (R-Mo.), and Bill Cassidy (R-La.).
“We are thankful for President Trump’s recent executive order directing the Department of Labor to expand Americans’ access to a modern retirement framework by increasing investment choice and diversification,” the senators wrote. “Like the President, we believe this is a critical step in leveling the playing field for the 90 million American workers with a 401(k) or other defined contribution retirement plan who lack the freedom to invest in private equity, cryptocurrency, and other alternative assets.”
The letter urges the Department of Labor to implement the executive order “with a regulatory safe harbor through a formal notice and comment rulemaking,” which the senators say will provide certainty for industry and maximize the order’s effectiveness.
The senators noted that while defined-benefit plans historically allocated roughly one-third of assets to alternative investments, these opportunities are largely unavailable to the more common 401(k) plans. “As the preference for defined-contribution plans has continued to grow, modernizing the regulatory framework and addressing the lack of equal access has become even more essential to enhancing the retirement security of America’s workers,” the letter states.
Daines previously sent a letter to President Trump in May urging the expansion of investment options for 401(k) plans and praised the Executive Order as a step toward broadening retirement opportunities for millions of Americans.