Senator Ron Johnson (R-WI) Introduces Ground-Breaking ESOP Legislation
As reported by The ESOP Association, Senator Ron Johnson (R-WI) has introduced the first ever legislation to use ESOPs as a tool for economic recovery. The legislation is called the Temporary Federal ESOP Grant Program Act and would provide grant money to companies who establish ESOPs and sell some or all of their stock to their employees. In particular, the legislation would:
- Require the Treasury secretary to establish the grant program within 30 days of enactment.
- Authorize a grant of up to $20,000 per employee who is a participant in the employee stock ownership plan’s trust.
- Authorize up to $50,000 for costs incurred in developing the employee stock ownership agreement.
- Authorize the Treasury secretary to transfer unobligated CARES Act funding to carry out the grant program.
Senator Johnson described this legislation as “outside the box,” and we certainly agree. You can read the full ESOP Association Washington Alert here .
UPDATE: Senator Tammy Baldwin (D-WI) has signed onto this bill, so now BOTH Wisconsin Senators are sponsors. Once again, this shows how ESOPs appeal to both sides of the political aisle.