President Donald Trump is expected to sign an executive order on Thursday directing federal agencies to expand access to private equity and credit investments in 401(k)s and workplace retirement plans.
The order instructs the Department of Labor and the SEC to provide clearer guidance for employers looking to include alternative investments in employee plans.
Currently, private equity is largely reserved for institutional investors. While no law prohibits its inclusion in retirement plans, plan sponsors have hesitated due to fiduciary responsibilities and the riskier nature of such investments.
President Trump is expected to sign two executive orders on Thursday — one focused on formalizing debanking protections and another on expanding assets that can be put toward 401(k)s. https://t.co/uBSU8TiBQW
— ABC News Politics (@ABCPolitics) August 7, 2025
The executive action does not change policy immediately, but signals Trump’s push for broader investment options and diversification.
Critics, including Sen. Elizabeth Warren, have raised concerns about risks to retirees and systemic threats from the growing private credit market.
Supporters argue that increased access to private markets could offer long-term growth. Implementation will depend on future agency rulemaking and sponsor due diligence.
Related:
TIPP Staff
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