In January 2025, the Trump administration’s executive order imposed a regulatory moratorium, freezing the Department of Labor’s (DOL) proposed guidance on Employee Stock Ownership Plans (ESOPs). The DOL had intended to release new rules on January 22, 2025, which would have introduced guidance on establishing fair market value for ESOP stock transactions and proposed a new safe harbor for initial ESOP transactions. These proposals were designed to bring more clarity and protections to ESOPs, but now they are on hold.
The moratorium means that any new regulations under the DOL’s proposals will be delayed until further review or modification by the administration. This move is part of a broader effort to reevaluate and potentially roll back regulatory changes set by the previous administration.
For businesses and ESOP trustees, this means they will continue to follow existing rules until any new guidance or regulatory updates are confirmed.