By executive authority granted by the U.S. Constitution and federal statutes, the following order is established:
Section 1. Objective. Many affluent U.S. citizens and public sector employees with government-sponsored pension plans have opportunities to invest in diverse alternative assets, or benefit from such investments. Yet, over 90 million Americans participating in employer-sponsored 401(k) plans are mostly excluded from tapping into the potential gains and diversification benefits that alternative asset investments can offer.
Fiduciaries managing 401(k)s and similar retirement plans must meticulously evaluate all aspects of private investment options. This includes carefully scrutinizing investment managers’ skills, track records, and performance in handling alternative asset allocations. This thoroughness is paramount to protect the retirement savings of Americans under their fiduciary responsibility, ensuring investments are both secure and judicious.
In my initial presidential term, a 2020 informational memo was released, noting that sensible federal measures could boost investment strategies directing a portion of retirement assets into alternative assets, similar to institutional investment practices.
However, excessive litigation targeting prudent decisions by dedicated and regulated fiduciaries, along with restrictive guidance from the Department of Labor after my first term, have prevented numerous Americans from gaining from alternative asset investments. These assets increasingly comprise significant portions of portfolios in public pension systems and defined-benefit retirement plans, offering attractive returns and portfolio diversification advantages.
The combination of excessive regulation and the encouragement of lawsuits by attorneys looking for easy wins has stifled innovation in investments. It’s also largely restricted 401(k) participants to asset classes that do not deliver the same long-term financial gains enjoyed by public pensions and other institutional investors.
My administration is committed to reducing the regulatory burdens and legal risks that prevent American workers’ retirement savings from securing the competitive returns and asset diversification vital for a financially secure retirement.
Sec. 2. Strategy. The established policy of the United States is that every American preparing for retirement should have the chance to invest in alternative assets whenever a plan fiduciary concludes that such investments present an appropriate chance for plan participants and beneficiaries to achieve enhanced net risk-adjusted returns from their retirement savings.
Sec. 3. Broadening Access to Alternative Investments. (a) For this executive order, “alternative assets” are defined as:
(i) Investments in private markets, including direct or indirect stakes in equity, debt, or other financial instruments not listed on public exchanges, often involving managers who actively guide the management of the underlying firms.
(ii) Direct or indirect real estate holdings, including debt instruments secured by real estate interests.
(iii) Actively managed investment funds focusing on digital asset investments.
(iv) Direct or indirect investments in commodities.
(v) Direct or indirect financing for infrastructure development projects.
(vi) Lifetime income strategies, including longevity risk-sharing pools.
(b) Within 180 days from this order’s effective date, the Secretary of Labor must reassess the Department of Labor’s existing guidance about a fiduciary’s responsibilities under the Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C. 1104), as they relate to offering participants an investment strategy that contains alternative asset investments. In doing so, the Secretary will consider retracting the Department of Labor’s Supplemental Private Equity Statement, released on December 21, 2021.
(c) Furthermore, within 180 days, the Secretary, as appropriate and legally permissible, will aim to clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary process linked to offering asset allocation funds containing investments in alternative assets under ERISA. The intent is to outline criteria for fiduciaries to use in carefully weighing potentially higher costs against the goal of achieving greater long-term net returns and broader investment diversification. The Secretary should also propose rules, regulations, or guidance, as needed, to clarify the obligations of a fiduciary toward plan participants under ERISA when deciding whether to provide access to an asset allocation fund including alternative assets, which might encompass appropriately balanced safe harbor provisions. The Secretary will prioritize actions that reduce ERISA litigation that restricts fiduciaries’ ability to use their judgment in offering investment options to plan participants.
(d) To meet the objectives of this section, the Secretary shall consult with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulators as necessary. This includes considering similar regulatory changes that other federal regulators could implement.
(e) The SEC, in consultation with the Secretary, will explore ways to improve access to alternative asset investments for participants in defined-contribution retirement savings plans. This might involve revisions to existing SEC regulations and guidance regarding accredited investor and qualified purchaser status to achieve the objectives of this order.
Sec. 4. General Terms. (a) This order should not be interpreted to negatively affect:
(i) Any legal authority granted to an executive department, agency, or its head;
(ii) The duties of the Director of the Office of Management and Budget in relation to budgetary, administrative, or legislative matters.
(b) This order will be enforced in line with applicable law and dependent on the availability of allocated funds.
(c) This order is not intended to, and does not, create any legally enforceable right or benefit for any party against the United States, its departments, agencies, officers, employees, or any other person.
(d) The Department of Labor will cover the expenses associated with publishing this order.
DONALD J. TRUMP
THE WHITE HOUSE,
August 7, 2025.