Trump orders Labor Department to allow alternative assets in 401(k)s

On August 7, 2025, President Trump signed an executive order directing the Secretary of Labor, within 180 days, to reexamine Department of Labor guidance on fiduciary duties under ERISA as they relate to alternative asset investments in defined-contribution retirement plans such as 401(k)s. The order instructs the Secretary to consider rescinding the Department of Labor's December 21, 2021, Supplemental Private Equity Statement and to propose rules, regulations, or guidance — potentially including safe harbor provisions — clarifying fiduciary obligations when offering asset allocation funds containing alternative assets. Alternative assets are defined broadly to include private equity, real estate, digital assets, commodities, infrastructure, and lifetime income strategies. The SEC is separately directed to consider revisions to accredited investor and qualified purchaser regulations to further facilitate retirement-saver access to these investments. The order cites burdensome litigation and prior agency guidance as having constrained fiduciary investment decisions.