Daines, GOP Senators Press Labor Secretary to Fast-Track 401(k) Investment Expansion

WASHINGTON — Montana Sen. Steve Daines and eight Republican colleagues are pressing the new Department of Labor Secretary to quickly implement President Trump’s executive order expanding 401(k) investment options, as the 180-day regulatory deadline approaches.

In a letter sent Friday to DOL Secretary Lori Chavez-DeRemer, the nine senators urged “expeditious implementation” of Trump’s directive to unlock access to alternative assets like cryptocurrency, private equity, and real estate investments for the nation’s 90 million workers with employer-sponsored retirement plans.

“We are thankful for President Trump’s recent executive order directing the Department of Labor to expand Americans’ access to a modern retirement framework by increasing investment choice and diversification,” the senators wrote. “Like the President, we believe this is a critical step in leveling the playing field for the 90 million American workers with a 401(k) or other defined contribution retirement plan who lack the freedom to invest in private equity, cryptocurrency, and other alternative assets.”

The push comes as Montana workers and others nationwide wait for regulatory changes that could significantly impact their retirement savings. Currently, most 401(k) participants are limited to traditional mutual funds and bonds, while government pension plans routinely invest one-third of their $12 trillion in assets in higher-return alternatives.

Investment Disparity Highlighted

The senators emphasized the stark disparity between retirement options available to different worker classes, noting that “more than eight times as many workers have defined contribution plans than defined-benefit plans” compared to 1975.

“However, whereas defined benefit plans allocate roughly one-third of their $12 trillion in retirement assets to alternative assets, these same assets are unfairly unavailable to those with defined-contribution or 401(k) plans—America’s preferred retirement savings vehicle,” the senators wrote.

They characterized the current system as creating “disparate treatment” that is “especially unfair considering the lack of material differences between the average characteristics or risk profiles of workers with a 401(k) versus those with a defined-benefit plan.”

Regulatory Process Urged

Beyond speed, the senators specifically called for DOL to use formal regulatory procedures in implementing the changes.

“As your Department begins working to expeditiously implement the regulatory safe harbor called for in President’s Trump executive order, we urge you to utilize a formal notice and comment rulemaking,” they wrote. “Doing so will maximize the order’s effectiveness and ensure industry has the certainty needed to deliver on behalf of American retirees.”

The letter was signed by Sens. Markwayne Mullin of Oklahoma, Jim Banks of Indiana, Bernie Moreno of Ohio, Cynthia Lummis of Wyoming, Bill Hagerty of Tennessee, Katie Britt of Alabama, Eric Schmitt of Missouri, and Bill Cassidy of Louisiana, along with Daines.

Background Context

The pressure campaign follows Trump’s August executive order directing DOL to reexamine guidance that has discouraged employers from offering alternative asset options in workplace retirement plans. Trump gave the agency 180 days to clarify fiduciary duties and potentially rescind Biden-era restrictions.

Daines had previously urged Trump to take this action in a May letter, arguing that current restrictions stem from employers’ fears of litigation costs rather than federal law prohibitions.

For Montana’s workforce—which relies heavily on 401(k) plans rather than traditional pensions—the regulatory changes could provide access to investment opportunities historically requiring million-dollar minimums and accredited investor status.

The executive order covers private market investments, real estate, digital assets through managed vehicles, commodities, infrastructure projects, and lifetime income strategies. Plan fiduciaries would still need to evaluate these investments for their risk-return profiles.

“As the preference for defined-contribution plans has continued to grow, modernizing the regulatory framework and addressing the lack of equal access has become even more essential to enhancing the retirement security of America’s workers,” the senators concluded.