EBSA nominee pledges to loosen enforcement and clarify fiduciary rules, senators press on ESOPs and retirement access

Daniel Aronowitz, President Trump's nominee for Assistant Secretary of Labor to lead the Employee Benefits Security Administration (EBSA), told the Senate HELP Committee he would prioritize clearer fiduciary guidance, limit protracted investigations and restore discretion to plan fiduciaries.

"I believe that fiduciaries should decide what's in retirement plans, not government bureaucrats, not plaintiff lawyers," Aronowitz said. He described EBSA as in need of a "major turnaround" and said he would end "the practice of open‑ended investigations that go on for years."

Aronowitz emphasized encouraging sponsors to expand retirement and health benefits by reducing regulatory burden and litigation risk. He said EBSA should provide ‘‘regulatory clarity" on issues such as mental‑health parity, private equity, cryptocurrency and ESG considerations so plan sponsors have certainty. He added he would champion innovative plan types and measures to bring retirement to underserved workers.

Senators questioned Aronowitz on enforcement and employee‑ownership plans. Senator Dan Sullivan and others urged support for Employee Stock Ownership Plans (ESOPs); Aronowitz said he would "end the war on ESOPs," arguing DOL enforcement has been overly aggressive toward valuation professionals and that independent valuation firms should be trusted absent clear conflicts of interest.

Senators also pressed him on access to retirement for workers without employer plans. In response, Aronowitz said he would work with Congress on proposals to make retirement more accessible, including bipartisan proposals to allow federal retirement accounts with matching for lower‑income workers; he explicitly committed to working on the "Retirement Savings for Americans Act" if confirmed.

Why it matters: EBSA enforces ERISA and oversees private retirement and welfare plans holding trillions in assets. Aronowitz's stated priorities — swifter investigations, less expansive enforcement, and regulatory clarity — would shift agency emphasis toward plan sponsor discretion and, potentially, fewer contested enforcement actions. Senators and advocates will watch whether those priorities change participant protections or encourage broader plan coverage.

Aronowitz did not face a committee vote at the hearing; senators may submit questions for the record.