Presidential Directive
By the authority granted to me as President under the Constitution and laws of the United States, I hereby issue the following order:
Section 1: Purpose
A significant number of affluent Americans and government employees involved in public pension schemes have the capability to invest in a variety of alternative assets. However, despite over 90 million Americans participating in employer-sponsored defined-contribution plans, most do not have the chance to invest directly, or through their retirement plans, in the growth and diversification potentials of alternative assets.
Fiduciaries of 401(k) and other defined-contribution retirement plans must thoroughly evaluate all facets of private offerings, encompassing investment managers’ skills and effectiveness in managing alternative asset investments. This diligence is aimed at protecting the retirement accounts of American workers, ensuring prudent and safe investments.
During my first term, my Administration issued a 2020 letter highlighting that prudent Federal action could stimulate the growth of investment strategies allowing a portion of retirement plan participants’ interests to be allocated to alternative assets, similar to institutional investors.
However, burdensome litigation challenging reasonable decisions by dedicated fiduciaries, alongside restrictive Department of Labor guidance introduced after my first term, has deprived millions of Americans of the chance to benefit from alternative asset investments. These assets represent an increasing share of public pension portfolios and offer competitive returns and diversification.
This combination of regulatory overreach and incentivized lawsuits has suppressed investment innovation, confining 401(k) participants to asset classes with returns that lack the long-term benefits enjoyed by public pension plans and other institutional investors. My Administration aims to ease regulatory burdens and litigation risks, thereby enabling American workers’ retirement accounts to pursue competitive returns and necessary diversification for a dignified retirement.
Section 2: Policy
The policy of the United States mandates that every American preparing for retirement should have access to funds that include investments in alternative assets, provided that the plan fiduciary believes such access would offer a suitable opportunity for participants to enhance the risk-adjusted returns on their retirement assets.
Section 3: Democratizing Access to Alternative Assets
(a) This order defines “alternative assets” as follows:
- Private market investments, including interests in equity, debt, or other financial instruments not traded on public exchanges.
- Direct and indirect real estate interests, including secured debt instruments.
- Holdings in actively managed investment vehicles involving digital assets.
- Direct and indirect commodity investments.
- Investments in infrastructure development projects.
- Lifetime income investment strategies, including longevity risk-sharing pools.
(b) Within 180 days, the Secretary of Labor shall review the Department of Labor’s guidance on fiduciary duties regarding alternative asset-inclusive asset allocation funds.
(c) The Secretary shall also clarify the Department’s stance on alternative assets, ensuring fiduciary processes align with ERISA while addressing litigation that restricts fiduciaries’ judgement.
(d) The Secretary will consult with the Secretary of the Treasury, SEC, and other Federal regulators to fulfill this policy’s objectives.
(e) The SEC shall explore ways to enhance participants’ access to alternative assets in defined-contribution plans, including revising regulations on accredited investor status.
Section 4: General Provisions
(a) This order shall not compromise the authority granted to any executive department or agency, nor the functions of the Director of the Office of Management and Budget.
(b) Implementation of this order will adhere to applicable law and available appropriations.
(c) This order does not create legal rights or benefits enforceable against the U.S. or any of its officers or employees.
(d) The Department of Labor will cover the costs for the publication of this order.
Donald J. Trump
The White House,
August 7, 2025.
