Source: The White House, compiled by Golden Finance
By the presidential powers granted to me by the Constitution and laws of the United States, I hereby order:
Section 1: Purpose. Many affluent Americans and government employees participating in public pension plans can invest in various alternative assets or benefit from these investments. However, despite over 90 million Americans participating in employer-sponsored defined contribution plans, the vast majority of these investors do not have the opportunity to participate directly or through their retirement plans in the potential growth and diversification opportunities that alternative asset investments offer.
Trustees of 401(k) plans and other defined contribution retirement plans must carefully review and consider all aspects of private equity products, including the capabilities, experience, and effectiveness of investment managers in managing alternative asset investments. They do this to protect the retirement accounts of Americans under their management and to fulfill their fiduciary responsibilities for prudent and secure investing.
During my first term, my administration issued a 2020 information letter acknowledging that prudent federal action can encourage the promotion of investment strategies, where a portion of retirement plan participants' interests is allocated to alternative assets, as is the case with institutional investors.
However, the burdensome litigation that attempts to challenge the reasonable decisions of loyal and regulated fiduciaries, along with the stifling guidance from the Department of Labor issued since my first term, has deprived millions of Americans of the opportunity to benefit from alternative asset investments. These assets represent an increasingly large portion of public pension and fixed-income retirement plan portfolios, providing not only competitive returns but also opportunities for diversified investing.
A combination of excessive regulatory interference and litigation from opportunistic lawyers has stifled investment innovation, causing participants in 401(k) plans and other defined contribution retirement plans to largely invest only in asset classes that yield returns far below the long-term net gains that public pension funds and other institutional investors can achieve.
My administration will reduce regulatory burdens and litigation risks that hinder American workers' retirement accounts from achieving competitive returns and asset diversification, which are essential for ensuring a dignified and comfortable retirement.
Section 2: Strategy. It is the policy of the United States that every American preparing for retirement should have the opportunity to access funds that include alternative asset investments, provided that the relevant plan fiduciaries determine that such opportunities can provide appropriate avenues for plan participants and beneficiaries to enhance the risk-adjusted net returns of their retirement assets.
Section 3: Democratizing access to alternative assets. (a) For the purposes of this order, the term 'alternative assets' refers to:
(i) Private market investments, including direct and indirect interests in equity, debt, or other financial instruments that are not traded on public exchanges, including the active role that managers of such investments (as applicable) seek to play in the management of these companies;
(ii) Direct or indirect real estate interests, including debt instruments secured by direct or indirect real estate interests;
(iii) Holding actively managed investment tools that invest in digital assets;
(iv) Direct and indirect investment in commodities;
(v) Direct and indirect interests in infrastructure financing projects; and
(vi) Lifetime income investment strategies, including longevity risk-sharing pooled funds.
(b) Within 180 days of the issuance of this order, the Secretary of Labor (hereinafter referred to as 'the Secretary') shall re-examine the Department of Labor's past and present guidance regarding fiduciaries' duties under the Employee Retirement Income Security Act of 1974 (as amended) (29 USC 1104) related to providing participants with asset allocation funds that include alternative asset investments. In conducting this re-examination, the Secretary shall consider whether to rescind the Department of Labor's supplementary private equity statement issued on December 21, 2021.
(c) Within 180 days of the issuance of this order, the Secretary shall seek, as deemed appropriate and in accordance with applicable law, to further clarify the Department of Labor's position on alternative assets and the appropriate fiduciary processes related to providing asset allocation funds that include alternative asset investments under the Employee Retirement Income Security Act (ERISA). Such clarifications must aim to establish the standards fiduciaries should use to prudently balance potential higher expenditures against the goal of seeking higher long-term net returns and broader investment diversification. The Secretary shall also propose rules, regulations, or guidance as deemed appropriate to clarify fiduciaries' obligations under ERISA when deciding whether to offer asset allocation funds that include alternative asset investments to plan participants, which may include appropriately calibrated safe harbor provisions. In carrying out the directives in this section to further promote the policies set forth in this order, the Secretary shall prioritize actions to curtail ERISA litigation that restricts fiduciaries' ability to use their best judgment in providing investment opportunities to relevant plan participants.
(d) In executing the directives in this section, the Secretary shall consult with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulatory agencies as necessary to achieve the policy objectives of this order, including parallel regulatory changes that other federal regulatory agencies may incorporate.
(e) The SEC shall consult with the Secretary to consider how to facilitate the provision of alternative asset investments for participants in participant-directed defined contribution retirement savings plans (PDS). Such facilitation measures may include, but are not limited to, considering revisions to existing SEC regulations and guidance related to accredited investor (ADS) and qualified purchaser (QPI) eligibility to achieve the policy objectives of this executive order.
Section 4: General provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) Powers conferred by law to the executive department or agency or its heads; or
(ii) Functions related to budgetary, administrative, or legislative proposals of the Director of the Office of Management and Budget.
(b) This order shall be implemented in accordance with applicable law and appropriations.
(c) This order does not intend to, nor will it, create any substantive or procedural rights or benefits that any party may enforce against the United States, its departments, agencies, or entities, their officers, employees, or agents, or any other person under law or equity.
(d) The costs of issuing this order shall be borne by the Department of Labor.
Donald J. Trump
The White House,
August 7, 2025.