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Compliance August 6, 2024
Senate Committee Passes Bill That Would Boost EBSA Funding
The bill differs from a recent House Appropriations Committee proposed budget that would cut funding for the Employee Benefits Security Administration.
Reported by Remy Samuels
The Senate Committee on Appropriations on August 1 passed the annual funding bill for the Department of Labor, including increased spending for both the DOL and the Employee Benefits Security Administration, which differed from budget cuts passed by a House Committee in June.
According to the bill, the DOL would receive $13.8 billion in discretionary funding, and EBSA will receive $206 million, an increase of $15 million, for fiscal year 2025.
Acting Secretary of Labor Julie Su had testified before the House Committee on Appropriations in April, requesting a $13.9 billion total budget for 2025. Her request also included a plan to set aside $4.7 million to implement provisions from the SECURE 2.0 Act of 2022.
Meanwhile, the House Appropriations Committee voted 31 to 25 on July 10 to advance an appropriations bill that would prevent the DOL from using any funds to implement the Retirement Security Rule, which has now been stayed by two federal courts. The proposed budget also contained sharp cuts to the Employee Benefits Security Administration and the Occupational Safety and Health Administration.
The House committee-passed bill provided a total discretionary budget of $10.5 billion for the DOL, which is $3 billion, or 23%, below the fiscal year 2024 funding level and $3.6 billion below the president’s budget request.
The Senate Appropriations Committee also urged the DOL in its recent bill to finalize its ESOP valuation regulations.
“The Committee is disappointed that EBSA failed to achieve the latest regulatory agenda goal of issuing an adequate consideration notice of proposed rulemaking in March of this year,” the report stated. “The Committee urges the Department to prioritize a timely, formal notice and comment rulemaking on the adequate consideration exemption that ensures taxpayers benefit from stakeholder input and experience, consistent with congressional intent.”
The Senate bill will get further debate and amendment, as will the House bill.