HB2696, the Retirement Savings for Americans Act of 2025, would create a new federal retirement savings program called the American Worker Retirement Plan, housed in the Treasury. The bill is designed to help working Americans build retirement wealth, especially workers whose employers do not already offer a retirement plan. Eligible workers would be automatically enrolled unless they opt out, with default payroll contributions set at 3 percent of compensation, and independent contractors and sole proprietors could also participate under specified conditions.
The bill also creates a Government Match Tax Credit that would be deposited into participants’ accounts. The credit is structured as a combination of a 1 percent income-based match plus a matching percentage of participant contributions, with higher matching on the first 3 percent of income contributed and a reduced match on the next 2 percent. The legislation treats participant contributions similarly to Roth contributions for tax purposes, allows catch-up contributions, tax-refund contributions, loans, hardship withdrawals, annuity payments, and rollovers to existing retirement plans, and sets rules for spousal protections and survivor rights.
To administer the program, the bill establishes an American Worker Retirement Investment Board and an advisory council. These bodies would set investment policy, select asset managers, oversee fiduciary standards, issue participant reports, and enforce financial literacy requirements. The Fund would offer a menu of investment options modeled on the Thrift Savings Plan, including government securities, fixed-income, stock index, international stock index, and lifecycle funds. The bill also includes detailed fiduciary, bonding, subpoena, audit, and enforcement provisions, largely borrowing concepts from ERISA and the Thrift Savings Plan framework.
The bill would amend the Internal Revenue Code to add new section 25F and would make the credit available as an overpayment deposited directly into the retirement fund. It also specifies that account balances for individuals under age 65 generally would not count against eligibility for federal public assistance benefits. In practical terms, the measure would expand access to workplace-style retirement saving for workers without employer plans while creating a new federal administrative and investment structure to manage those accounts.
Overall sentiment in the available record appears neutral to favorable, but limited: the bill was introduced with bipartisan cosponsors and referred to committee, and there is no recorded committee debate or vote history in the provided materials. Because no transcripts or votes are available, there is no documented opposition in the record, though the bill’s automatic enrollment, federal administration, and new tax credit structure are the kinds of features that could draw scrutiny in committee.
The bill would add a new federal retirement savings program and amend the Internal Revenue Code to create section 25F, establishing a Government Match Tax Credit and directing those amounts into participant accounts in the American Worker Retirement Fund. It would also create a new federal board and executive director to administer the plan, set investment options, regulate enrollment and contributions, and enforce fiduciary standards. The legislation would interact with Social Security, public assistance eligibility, ERISA-like fiduciary rules, and tax treatment of retirement contributions and distributions, while extending participation to workers without existing employer-sponsored retirement plans and certain independent contractors.
The available record suggests generally positive or at least constructive sentiment toward the bill. It was introduced with bipartisan support from multiple House members, including members from both parties, and there is no recorded committee vote or hearing transcript showing organized opposition. Because the bill has only been referred to committee in the provided history, the public legislative posture appears preliminary rather than contested.
No formal contention is documented in the provided materials because there are no committee transcripts or votes. Based on the bill text, likely points of debate would include the mandatory auto-enrollment structure with opt-out, the creation of a new federal investment board, the use of federal tax credits to subsidize retirement saving, treatment of independent contractors, and the extent to which account balances should affect eligibility for public benefits. The bill also contains detailed fiduciary and enforcement provisions that could raise questions about administrative complexity, oversight, and federal involvement in retirement investment decisions.