By the authority entrusted to me as President under the Constitution and the laws of the United States, I hereby issue the following directive:
Section 1. Purpose.
A significant number of affluent Americans, alongside government employees participating in public pension plans, currently have the ability to invest in a variety of alternative assets. However, despite over 90 million Americans engaging in employer-sponsored defined-contribution plans, the overwhelming majority lack the opportunity to directly or indirectly tap into the potentially lucrative growth and diversification offered by these alternative asset investments.
The fiduciaries overseeing 401(k) and similar defined-contribution retirement plans are charged with the responsibility of meticulously evaluating all aspects of private investment offerings. This includes scrutinizing the capabilities, experiences, and effectiveness of investment managers in handling alternative asset investments. Their primary goal is to safeguard the retirement accounts of the Americans they serve, adhering to their fiduciary duties aimed at secure and prudent investments.
During my first term, my Administration recognized the potential for prudent federal initiatives to foster the growth of investment strategies that would allow a portion of retirement plan participants’ interests to be allocated to alternative assets—mirroring the practices of institutional investors.
However, burdensome lawsuits challenging the sound decisions made by dedicated, regulated fiduciaries, combined with restrictive guidance from the Department of Labor since my first term, have deprived millions of Americans of the opportunity to benefit from investments in alternative assets. These assets are increasingly integral to the portfolios of public pension and defined-benefit retirement plans, offering competitive returns and diversification opportunities.
A toxic mix of regulatory overreach and encouragement of frivolous lawsuits from opportunistic trial lawyers has stifled investment innovation, leaving 401(k) and other defined-contribution plan participants stranded within asset classes that do not provide the same long-term advantages enjoyed by public pension plans and other institutional investors.
My Administration is committed to alleviating the regulatory burdens and litigation risks that hinder American workers from achieving the competitive returns and asset diversification essential for a dignified and comfortable retirement.
Sec. 2. Policy.
It is the policy of the United States that every American preparing for retirement should have access to funds that encompass investments in alternative assets when a relevant plan fiduciary concludes that such access presents a suitable opportunity for plan participants and beneficiaries to enhance the net risk-adjusted returns on their retirement assets.
Sec. 3. Democratizing Access to Alternative Assets.
(a) For the purposes of this order, “alternative assets” are defined as:
(i) private market investments, which include direct and indirect interests in equity, debt, or other financial instruments not traded on public exchanges, especially where the investment managers, if applicable, seek to actively manage these companies;
(ii) direct and indirect interests in real estate, including debt instruments secured by real estate interests;
(iii) holdings in actively managed investment vehicles that invest in digital assets;
(iv) direct and indirect investments in commodities;
(v) direct and indirect interests in projects that finance infrastructure development; and
(vi) lifetime income investment strategies, including longevity risk-sharing pools.
(b) Within 180 days of this order, the Secretary of Labor shall reassess the Department of Labor’s past and present guidance concerning fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C. 1104) related to offering an asset allocation fund that includes investments in alternative assets. This reassessment will consider whether to rescind the Department of Labor’s December 21, 2021, Supplemental Private Equity Statement.
(c) Additionally, within the same timeframe, the Secretary shall seek to clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary processes for offering asset allocation funds containing these investments under ERISA. This clarification aims to establish criteria for fiduciaries to prudently balance potentially higher expenses against the pursuit of greater long-term net returns and broader investment diversification. The Secretary will propose necessary rules, regulations, or guidance to elucidate fiduciary duties to plan participants regarding asset allocation funds that include alternative assets, potentially offering appropriately calibrated safe harbors. In pursuing these directives, the Secretary will prioritize actions that may mitigate ERISA litigation, thus empowering fiduciaries to exercise their best judgment in presenting investment opportunities to plan participants.
(d) In executing these directives, the Secretary shall consult, as appropriate, with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulators to align with the policy objectives of this order, including any parallel regulatory changes that may be necessary.
(e) The SEC, in consultation with the Secretary, will explore ways to enhance access to investments in alternative assets for participants in defined-contribution retirement savings plans. This initiative may encompass revisions to existing SEC regulations and guidance regarding accredited investor and qualified purchaser status to fulfill the objectives of this order.
Sec. 4. General Provisions.
(a) Nothing in this order shall be interpreted to impair or affect:
(i) the authority granted by law to an executive department or agency, or its head; or
(ii) the functions of the Director of the Office of Management and Budget related to budgetary, administrative, or legislative proposals.
(b) This order shall be carried out in accordance with applicable law and subject to available appropriations.
(c) This order does not intend to, nor does it create any enforceable rights or benefits, substantive or procedural, against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other individual.
(d) The costs for publishing this order shall be covered by the Department of Labor.
DONALD J. TRUMP
THE WHITE HOUSE,
August 7, 2025.
