Bill · S. 1222· Senate(119-S-1222)
Financial Freedom Act of 2025
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Tommy Tuberville
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
The "Financial Freedom Act of 2025" aims to limit the Secretary of Labor's authority regarding investment choices for individual retirement accounts. It specifically targets pension plans where participants or beneficiaries exercise control over their account assets. The bill amends the Employee Retirement Income Security Act of 1974 to ensure fiduciaries are not restricted in the types of investment alternatives they offer. It also prohibits the Secretary of Labor from issuing regulations that constrain the range of investments available through self-directed brokerage windows.
Yes· 3 of 8
Would people over 65 be better off under this?+5
The bill provides more flexibility and choice in managing retirement assets for individuals planning for or in retirement.
Would middle-income households be better off under this?+5
It expands the ability of individuals to manage their own retirement investments through brokerage windows.
Would high-income households be better off under this?+5
It provides broader investment opportunities for those managing their own retirement accounts.
The opposite
Does this give the federal government more power?-5
The bill reduces federal oversight by prohibiting the Secretary of Labor from regulating specific investment types.
Who it would affect, and how
Potential Positive Impacts for People
-
Expanded Investment Choices: The bill ensures that a fiduciary is not prohibited from selecting specific investment alternatives, provided the participant has the opportunity to choose from a broad range of options (Section 2, subsection (A)(i)).
-
Protection of Self-Directed Brokerage Windows: The Secretary of Labor is prohibited from issuing regulations that constrain or prohibit the range or type of investments offered through self-directed brokerage windows (Section 2, subsection (B)(i)).
-
Clarified Fiduciary Responsibility: The bill states that the selection of a self-directed brokerage window, or the participant's control over assets within that window, does not violate diversification or prudence requirements (Section 2, subsection (B)(iii)).
Potential Negative Impacts for People
- No specific negative impacts are explicitly detailed 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 Billionaires+5Good For High Income Households+5Good For High Net Worth Individuals+5Good For Middle Class Households+5Good For Retirees+5Good For Seniors+5Good For Ultra High Net Worth Individuals+5
- Economy And Finance
- Improves Consumer Protection+5
- Governance And Ideology
- Increases Federal Power-5
- 4/1/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 3 Cosponsors added.
- Introduced in Senate
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.
James JusticeRepublican · West Virginia
Cynthia LummisRepublican · Wyoming
Rick ScottRepublican · Florida