DOL Submits Alternative Investments Rule to White House Department

The Department of Labor has completed a proposed rule addressing fiduciary duties when including alternative investments in defined contribution plans. The agency submitted the proposed rule to the Office of Information and Regulatory Affairs, a division within the Office of Management and Budget, on Tuesday, although no information related to the proposal’s content has been released.

President Donald Trump’s August 2025 executive order mandated that the DOL and other regulators provide a framework for how fiduciaries could best include alternative investments in their retirement plans. Alts were already allowed as investment options, but rarely used, due in part to litigation concerns. Trump’s order gave the agencies 180 days to provide guidance, which resulted in an early-February deadline.

The October 2025 government shutdown, which became the longest on record, gave the agencies less time and fewer resources with which to work on the guidance, but its high priority likely allowed them to meet the original deadline.

Since Trump’s executive order, several industry players have pledged to add private investments to their retirement plans. Notably, on Wednesday, Empower added Blackstone to the list of partners for its private investment program.

Congressional Democrats have been more skeptical of the directive. Senator Elizabeth Warren, D-Massachusetts, has sent public letters to both Empower (July 2025) and the Securities and Exchange Commission (this week), requesting more information about private market and cryptocurrency investments, respectively, and stating that neither is appropriate to be included in retirement plan investing.

Under former President Joe Biden, Department of Labor guidance stated that plan fiduciaries were “not likely suited to evaluate the use of [private equity] investments in designated investment alternatives in individual account plans.”

The Office of Management and Budget, part of the executive branch of the government, typically has 90 days to review proposals, though it may act faster. If the goal is to meet the 180-day deadline, the OMB has only about three weeks to approve the proposed rule.

After OMB approval, the DOL’s Employee Benefits Security Administration will publish the proposal to initiate a 60-day public comment period. The DOL will then finalize the rule.