Bill · H.R. 2544· House(119-HR-2544)
Financial Freedom Act of 2025
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Byron Donalds
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Financial Freedom Act of 2025 aims to prevent the Secretary of Labor from limiting the variety of investments available to individuals with control over their retirement accounts. It amends the Employee Retirement Income Security Act of 1974 regarding fiduciary duties. The bill ensures fiduciaries are not required to select or prohibited from selecting specific investment types if participants can choose from a broad range. Additionally, it prevents the Secretary from issuing regulations that constrain investments offered through self-directed brokerage windows. This includes ensuring that the selection of such windows does not violate diversification or prudence requirements.
Yes· 3 of 7
Would people over 65 be better off under this?+5
The bill increases investment choice and flexibility for those with individual retirement accounts.
Would retired people be better off under this?+5
Provides greater flexibility and choice for managing retirement assets.
Would middle-income households be better off under this?+3
Provides more autonomy over retirement asset allocation for individuals with self-directed accounts.
The opposite
Does this give the federal government more power?-5
The bill reduces the regulatory power of the Secretary of Labor, thus decreasing federal oversight.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Investment Choice: The bill states that a fiduciary is not required to select or prohibited from selecting any particular type of investment alternative, provided the participant has the opportunity to choose from a broad range of alternatives (Section 2, (3)(A)(i)).
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Protection of Self-Directed Brokerage Windows: The Secretary of Labor would be prohibited from issuing regulations or guidance that constrain or prohibit the range or type of investments offered through a self-directed brokerage window (Section 2, (3)(B)(i)).
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Clarification of Fiduciary Responsibility: The bill clarifies that a fiduciary's selection of a self-directed brokerage window, or the participant's exercise of control within that window, does not violate diversification or prudence requirements (Section 2, (3)(B)(iii)).
Potential Negative Impacts for People
- No specific negative impacts are explicitly mentioned in the text provided.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Retirees+5Good For Seniors+5Good For Billionaires+3Good For High Income Households+3Good For High Net Worth Individuals+3Good For Middle Class Households+3Good For Ultra High Net Worth Individuals+3
- Governance And Ideology
- Increases Federal Power-5
- 4/1/2025
- Referred to the House Committee on Education and Workforce.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.