Public Policy & NGOs
Here's a look at documents from public policy and non-governmental organizations
Featured Stories
Food and Water Watch: New Research Shows Ohio Data Center Tax Incentive Harms
WASHINGTON, June 3 -- The Food and Water Watch posted the following news release:
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New Research Shows Ohio Data Center Tax Incentive Harms
Case study on tax incentives for proposed Amazon data center in Adams County demonstrates unfulfilled promise of economic benefits
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Adams County, OH -- New research from the environmental advocacy group Food & Water Watch examines tax incentives for a major data center project in Adams County, Ohio. State officials and data center advocates have argued that tax incentives are necessary to lure developers to states and reap the economic benefits of
... Show Full Article
WASHINGTON, June 3 -- The Food and Water Watch posted the following news release:
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New Research Shows Ohio Data Center Tax Incentive Harms
Case study on tax incentives for proposed Amazon data center in Adams County demonstrates unfulfilled promise of economic benefits
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Adams County, OH -- New research from the environmental advocacy group Food & Water Watch examines tax incentives for a major data center project in Adams County, Ohio. State officials and data center advocates have argued that tax incentives are necessary to lure developers to states and reap the economic benefits ofdata center development across the country, but the case in Adams County exemplifies potential negative economic impact to local communities.
The research, based on a review of documents related to Project Galaxy, a proposed Amazon-owned data center in Adams County, breaks down what certain tax incentive proposals for Project Galaxy could mean for local taxpayers, including:
* Community Reinvestment Area (CRA) agreements, which provides property tax abatements (reductions) in specific zones designated to incentivize private investment and property improvements;
* Tax Increment Financing (TIF), which would create a "TIF district," that would use the country's tax revenue to fund private infrastructure for Project Galaxy;
* Payment in lieu of taxes (PILOT) program, which can be constructed to cover the lack of taxes, with payments collected annually as a lump sum.
States across the country have walked back or have floated proposals to end tax incentives meant to lure data center developers, including hot beds for the development like Virginia. Just last week, Ohio enacted a pause on state tax incentives following a report that the state lost out on over $555 million in revenue for 2024, and $1.6 billion in 2025 -- 11 times more than originally projected.
"Billion dollar tech companies are preying on rural communities to fund data center projects which provide little to no tangible benefits for nearby residents. They create little jobs and are drains on local resources. Ending tax incentives at the local and state levels are central to putting people over profits," said Ben Murray, Senior Researcher for Food & Water Watch and author of the report. "The next step must be a data center moratorium at the local and state level to allow local officials the time to assess all impacts and consequences of a data center buildout."
In October, Food & Water Watch became the first organization to call for a nationwide data center moratorium and hundreds of local, state, and national organizations have since joined the call.
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Original text here: https://www.foodandwaterwatch.org/2026/06/02/new-research-shows-oh-data-center-tax-incentive-harms/
[Category: Science]
END CITIZENS UNITED AND STAND UP AMERICA LAUNCH "KICK OUT CORRUPTION TOUR" IN KEY BATTLEGROUND STATES
WASHINGTON, June 3 -- Stand Up America, an organization was born in 2016 as a digital-first grassroots community working to resist what they say is Donald Trump's corruption, racism and his threats to democracy, issued the following news release on June 2, 2026:
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END CITIZENS UNITED AND STAND UP AMERICA LAUNCH "KICK OUT CORRUPTION TOUR" IN KEY BATTLEGROUND STATES
Sen. Mark Kelly to headline Tempe kickoff
Sen. Booker and other national leaders to join upcoming stops
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NEW YORK - Working families are seeing the price of everyday essentials like groceries, utilities, health care, and gas
... Show Full Article
WASHINGTON, June 3 -- Stand Up America, an organization was born in 2016 as a digital-first grassroots community working to resist what they say is Donald Trump's corruption, racism and his threats to democracy, issued the following news release on June 2, 2026:
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END CITIZENS UNITED AND STAND UP AMERICA LAUNCH "KICK OUT CORRUPTION TOUR" IN KEY BATTLEGROUND STATES
Sen. Mark Kelly to headline Tempe kickoff
Sen. Booker and other national leaders to join upcoming stops
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NEW YORK - Working families are seeing the price of everyday essentials like groceries, utilities, health care, and gasskyrocket, while Trump and Congressional Republicans are lining their own pockets and taking care of their billionaire donors. The system seems rigged against working families. From stock trading in the White House to ballrooms bankrolled by billion-dollar corporations to pay-to-play pardons, we're seeing unprecedented corruption from the Trump administration. Donald Trump and his cronies are selling access to power, enriching themselves, and leaving taxpayers to foot the bill--and congressional Republicans are enabling them at every turn.
Today, Stand Up America and End Citizens United are launching a national Kick Out Corruption Tour to expose how corruption in Washington is driving up costs for everyday Americans. The tour will bring together national Democratic leaders and battleground state voters for events focused on holding Trump and Republicans in Congress accountable for the chaos and corruption that is hurting working families, while also laying out a proactive vision and solutions to cleaning up corruption and putting government back on the side of working families.
The first stop of the tour will take place on Sunday, June 7 in Tempe, Arizona, with Senator Mark Kelly, who is a leading voice in the Senate on government accountability and anti-corruption reform. Senator Cory Booker will headline an upcoming tour stop this summer, and additional events with other national leaders will be announced in the coming weeks and months.
"This is the most corrupt administration in history. The system has been rigged against working people for decades and now Donald Trump is taking full advantage of it by selling out Americans to enrich himself, his family, and his rich friends," said Senator Mark Kelly. "It's time to hold him and other corrupt politicians accountable and show the real changes we can make to fix this broken system so that Washington can start working for Americans again. That's how we do everything from lowering health care costs to making sure AI benefits all Americans."
"What we're seeing right now in Washington is not business as usual. The Trump administration and congressional Republicans have unleashed unprecedented corruption to benefit themselves and their billionaire donors at the expense of working families. Americans are sick and tired of a system that rewards the rich and powerful while everyone else pays more for health care, housing, and everyday essentials," said Christina Harvey, Executive Director of Stand Up America. "The Kick Out Corruption Tour will elevate leaders who are fighting to crack down on corruption and reforms that can help us build a government that works for everyone, not just a powerful few."
"Corruption has come to define Donald Trump and his Republican cronies in Congress," said End Citizens United President Tiffany Muller. "Americans are fed up with a government that only works for corporate interests and billionaire campaign donors, while leaving working families in the dust. Every taxpayer dollar spent on a ballroom, slush fund, or tax break for big corporations comes directly out of the pockets of everyday people. That's why we couldn't be more excited to launch the Kick Out Corruption Tour -- it's time to hold politicians accountable and build the trust we need with voters for the midterms and beyond."
More speakers and tour stops will be announced soon.
Media interested in covering the tour should contact press@standupamerica.com.
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Original text here: https://standupamerica.com/2026/06/end-citizens-united-and-stand-up-america-launch-kick-out-corruption-tour-in-key-battleground-states/
[Category: Political]
EBC Ascending Professionals Committee Announces New Chair: Becky Raymond
BROOKLINE, Massachusetts, June 3 -- The Environmental Business Council of New England issued the following news:
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EBC Ascending Professionals Committee Announces New Chair: Becky Raymond
The EBC is pleased to announce that Becky Raymond, Environmental Scientist with SAGE Environmental, A Terracon Company, is now Chair of the EBC Ascending Professionals Committee. Please join EBC in welcoming Becky to this position.
In her leadership role, Becky joins current Committee Vice Chair Allison Koch of Tighe & Bond. The members of the EBC Ascending Professionals Committee's Leadership team will
... Show Full Article
BROOKLINE, Massachusetts, June 3 -- The Environmental Business Council of New England issued the following news:
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EBC Ascending Professionals Committee Announces New Chair: Becky Raymond
The EBC is pleased to announce that Becky Raymond, Environmental Scientist with SAGE Environmental, A Terracon Company, is now Chair of the EBC Ascending Professionals Committee. Please join EBC in welcoming Becky to this position.
In her leadership role, Becky joins current Committee Vice Chair Allison Koch of Tighe & Bond. The members of the EBC Ascending Professionals Committee's Leadership team willmeet routinely with the Committee Chair and Vice Chair to identify topics for future EBC programs. As part of their responsibility, members of the leadership team will also take on the role of program Chair to organize and moderate EBC programs for this committee.
Becky's Bio:
Becky is an Environmental Scientist at SAGE Environmental, A Terracon Company an environmental consulting firm based out of Rhode Island specializing in remediation, compliance, and environmental health and safety. She primarily focuses on environmental site assessments, remedial investigations and redevelopment, and regulatory compliance. She performs and oversees Phase I Environmental Site Assessments and Phase II Subsurface Investigations; a wide range of multi-media environmental assessment/testing, including groundwater gauging and sampling; PFAS sampling; soil-gas testing; sediment sampling; underground storage tank (UST) removals/closures; and assists with redevelopment projects, as well as permitting and compliance projects. Becky graduated Cum Laude with a Bachelor of Science in Environmental Science, and a minor in Chemistry from Paul Smith's College in 2018. In 2018, Becky traveled to Moscow, Russia as part of a program partnership with Lomonosov Moscow State University. While in Russia, she traveled through the White Sea, to complete a course in Coastal, Freshwater, and Tidal Ecology. In 2018, Becky also worked in partnership with the New York Department of Health and the Adirondack Watershed Institute, to conduct a long term monitoring program for the emergence of Powassan Virus. Utilizing hunter harvested deer blood samples, Becky helped determine and map the current range of Powassan Virus and develop a risk map using existing tick density and other geospatial data. Becky is an Environmental Business Council of New England Ascending Professional. In her free time, she enjoys hunting and fishing and spending time with her two German Shorthaired Pointers.
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Original text here: https://ebcne.org/news/ebc-ascending-professionals-committee-announces-new-chair-becky-raymond/
[Category: Environment]
Democracy Forward Launches Regulatory and Legal Research Practice to Confront Policy Proposals That Harm People and Communities
WASHINGTON, June 3 -- Democracy Forward, an organization that says it advances democracy and social progress through litigation, policy and public education and regulatory engagement, issued the following news release on June 2, 2026:
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Democracy Forward Launches Regulatory and Legal Research Practice to Confront Policy Proposals That Harm People and Communities
New Team Expands Ability to Protect People and Communities from Anti-Democratic Efforts
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Democracy Forward today announced the launch of a new Regulatory and Legal Research practice, which will help the organization continue
... Show Full Article
WASHINGTON, June 3 -- Democracy Forward, an organization that says it advances democracy and social progress through litigation, policy and public education and regulatory engagement, issued the following news release on June 2, 2026:
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Democracy Forward Launches Regulatory and Legal Research Practice to Confront Policy Proposals That Harm People and Communities
New Team Expands Ability to Protect People and Communities from Anti-Democratic Efforts
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Democracy Forward today announced the launch of a new Regulatory and Legal Research practice, which will help the organization continueto meet the needs of people and communities as a number of federal rules and regulations are set to be proposed or implemented that negatively impact people's lives. The team builds off of Democracy Forward's deep expertise in administrative law and the regulatory process at the federal and state levels and adds capacity and infrastructure that will further enable the many communities and organizations that Democracy Forward represents to confront harmful policies before they are implemented. In addition to supporting a range of communities, organizations, and entities, the new team will also provide unique opportunities for individuals to engage in the regulatory process to ensure their voices are heard.
"Agency rules and regulations have a massive, generational impact on people, and this new practice will help formalize how we connect with communities and strengthen our democracy through strategic participation in policy and rulemaking processes," said Skye Perryman, President and CEO of Democracy Forward. "We are thrilled that the Regulatory and Legal Research Practice will make Democracy Forward an even more full-service organization."
The new team will monitor regulations and regulatory actions to ensure any proposals that could degrade democracy or threaten people in favor of partisan politics or special interests are met with fierce and coordinated response. While Democracy Forward has long engaged in regulatory and comment processes on behalf of clients and communities, the new practice will strengthen coordinated strategies so that communities that will be most affected by policy proposals are engaged in the comment process and prepared to confront any harmful efforts if they are implemented.
As part of the team's launch, Democracy Forward published a new regulatory tracker, which provides real-time visibility into federal rulemaking activity across the issue areas that matter most to people and communities. The tracker is designed to keep partners and advocates informed and engaged-helping ensure that no harmful proposal goes unanswered.
The team will be led by Christopher Deal, who joins Democracy Forward in the role of Director of Regulatory Affairs and Legal Research. Chris most recently served as Deputy General Counsel for Litigation at the Consumer Financial Protection Bureau (CFPB), where he led the team of lawyers responsible for representing the agency in the federal courts of appeals, defending the CFPB in federal district court, and advancing the CFPB's interests in friend-of-the-court briefs. In his nearly ten years in the Office of Litigation, Chris directly handled or supervised many of the agency's most significant cases and helped the CFPB navigate multiple separation-of-powers challenges in courts across the country, successfully defend its regulations, and forcefully advance its views on cutting-edge questions of statutory interpretation.
Chris joins Democracy Forward as part of the many high profile hires Democracy Forward has made from across the federal agencies. Democracy Forward has scaled its operations dramatically since January 2025, more than doubling its team and building a deep bench that includes former top U.S. Department of Justice (DOJ) officials, former DOJ trial and appellate attorneys, and former CFPB, federal agency and White House officials, as well as top plaintiffs and defense attorneys from private practice.
In addition to Deal, the Regulatory and Legal Research team will grow to add attorneys and researchers with regulatory experience to enhance its operations. The new practice is part of Democracy Forward's Oversight, Regulatory Affairs, and Strategic Initiatives Division, which is led by Senior Director of Oversight, Regulatory Affairs, and Strategic Initiatives Julia Szybala. Julia spent a decade at the CFPB, where she most recently served as Assistant General Counsel for Oversight. In her time at the Bureau, Julia managed the agency's responses to investigations and oversight inquiries from Congress, the Government Accountability Office, and the Inspector General, and helped agency leaders across multiple administrations navigate complex legal and policy issues with an emphasis on transparency, accountability, and good governance. Julia began her career in private practice, where she focused on regulatory compliance and internal investigations.
Products generated from the Regulatory and Legal Research practice will provide an important resource for Democracy Forward's Democracy 2025, a coalition that is now more than 720 organizations strong, to ensure swift legal challenges and responses to governmental actions that threaten people and our democracy. Democracy 2025 and its resource center have provided needed resources for pro-democracy groups across civil society as well as state and local communities.
"As this administration pushes harmful rules through the regulatory process, we must use every tool at our disposal to fight back," said Christopher Deal. "I am honored to be part of a team that will expose the flaws in these damaging proposals and equip communities to respond."
For more information about Democracy Forward's team, please visit https://democracyforward.org/about/team/.
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Democracy Forward Foundation is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.
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Original text here: https://democracyforward.org/news/press-releases/democracy-forward-launches-regulatory-and-legal-research-practice-to-confront-policy-proposals-that-harm-people-and-communities/
[Category: Political]
Cooperative Institute for Research in Environmental Sciences: Indonesia's Air Quality Got Worse After China Banned Plastic Waste Imports
BOULDER, Colorado, June 3 (TNSjou) -- The Cooperative Institute for Research in Environmental Sciences issued the following news:
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Indonesia's air quality got worse after China banned plastic waste imports
New research links a global waste policy shift to increased air pollution from open burning at Indonesian dump sites
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When China banned plastic waste imports in 2018, countries like the United States, the Netherlands, Australia, and Japan didn't stop exporting plastic waste -- they diverted their shipments to countries in Southeast Asia.
New research led by CIRES Fellow Ellen Considine
... Show Full Article
BOULDER, Colorado, June 3 (TNSjou) -- The Cooperative Institute for Research in Environmental Sciences issued the following news:
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Indonesia's air quality got worse after China banned plastic waste imports
New research links a global waste policy shift to increased air pollution from open burning at Indonesian dump sites
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When China banned plastic waste imports in 2018, countries like the United States, the Netherlands, Australia, and Japan didn't stop exporting plastic waste -- they diverted their shipments to countries in Southeast Asia.
New research led by CIRES Fellow Ellen Considineshows that air pollution in Indonesia worsened in 2018 and 2019, when the country began receiving some of the plastic waste that previously went to China. Municipal waste collection is limited in Indonesia and open burning of solid waste is common.
The work, published today in the Journal of the Royal Statistical Society - Series C: Applied Statistics (https://academic.oup.com/jrsssc/advance-article/doi/10.1093/jrsssc/qlag031/8699861?login=false), highlights a recurring environmental justice issue: wealthy nations exporting pollution and the consequences in lower-income countries with less capacity to refuse or manage it.
"When high-income countries ship plastic waste to low- and middle-income countries, more plastic waste tends to be burned," said Considine, who is also an assistant professor of Geography at CU Boulder. "This releases air pollutants that can cause respiratory disease, cancer, or even death to local residents."
Considine and her co-author, Rachel Nethery from the Harvard T.H. Chan School of Public Health, leveraged satellite data to evaluate changes in fine particulate matter at 356 open dump sites in Indonesia before and after China's ban on plastic waste imports. Fine particulate matter is the air pollutant of greatest concern for human health because it consists of particles small enough to penetrate human lungs and enter the bloodstream.
"Previous studies of the impact of plastic waste burning on air quality have been more localized, for instance by deploying an air quality monitor in a couple of locations for a few months," Considine said. "Our approach is powerful because it allows us to look at air pollution changes over a large study region and time period and identify a connection to plastic waste imports."
The team used advanced statistical methods to determine how much of the increase in air pollution was due to China's policy change and waste burning versus other factors that vary over time, like weather.
The results suggest the policy change and waste burning caused an average 3.3 percent increase in fine particulate matter at open waste dump sites in Indonesia in 2018 and 2019 compared to 2012 to 2017. The potential health impacts are significant; the increase in fine particulate matter corresponds with an approximate 1.9 percent increase in mortality risk from lung cancer and a 3.5 percent increase in mortality risk from lower respiratory infections.
"Methods like this, for evaluating the impact of policies, have historically been developed by economists but have more recently been adapted by public health and environmental scientists," Considine said.
The analysis reveals a potential chain reaction after China's ban: some of the plastic waste that used to end up in China was diverted to Indonesia, leading to more open dumping and burning of plastic waste, which generated more fine particulate matter air pollution.
Considine and Nethery's work supports recent decisions by Indonesia and Malaysia, another country impacted by China's policy change, to ban plastic waste imports. The team's approach can be used to evaluate the effectiveness of these and future policies related to plastic waste and open burning.
"I am inspired by stories of air pollution research being used to inform policy decisions, " Considine said. "Efforts like ours help fill critical evidence gaps in places and for applications with more limited data."
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Original text here: https://cires.colorado.edu/news/indonesias-air-quality-got-worse-after-china-banned-plastic-waste-imports
[Category: Environment]
Brady Celebrates the Passage of Francesco's Law to Promote Secure Firearm Storage in New York
WASHINGTON, June 3 -- The Brady Campaign to Prevent Gun Violence issued the following news release:
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Brady Celebrates the Passage of Francesco's Law to Promote Secure Firearm Storage in New York
The bill, named for a New York teen who died by suicide with an unsecured firearm, now awaits Gov. Kathy Hochul's signature
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ALBANY, NY, June 2, 2026 -- Today, the New York Senate passed Francesco's Law, which will mandate that any person who owns or is the custodian of a firearm, shotgun, or rifle must securely store it. Unsecured firearm storage increases the likelihood in homes of family fire,
... Show Full Article
WASHINGTON, June 3 -- The Brady Campaign to Prevent Gun Violence issued the following news release:
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Brady Celebrates the Passage of Francesco's Law to Promote Secure Firearm Storage in New York
The bill, named for a New York teen who died by suicide with an unsecured firearm, now awaits Gov. Kathy Hochul's signature
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ALBANY, NY, June 2, 2026 -- Today, the New York Senate passed Francesco's Law, which will mandate that any person who owns or is the custodian of a firearm, shotgun, or rifle must securely store it. Unsecured firearm storage increases the likelihood in homes of family fire,including unintentional shootings, firearm suicide of adults and children, and intentional shootings.
Led by Assemblymember Khaleel Anderson and Senator Erik Bottcher in the New York State Legislature, Francesco's Law is named after 17-year-old Francesco, who suffered homophobic bullying and died by firearm suicide after gaining access to an unsecured gun. Earlier this morning, the Albany Times-Union published an opinion piece by Francesco's mom, Diana Cochran, in which she wrote: "I cannot bring Francesco back. But this law can determine what happens to the next child in the next house. No child's worst moment should be met with an unsecured gun. That should be the law in New York -- and the standard everywhere."
Studies show that access to a gun triples the risk of death by suicide. In 75% of youth firearm suicides for which the gun storage method could be identified, the gun was stored loaded and unlocked. Nationwide, nearly 7 million children live in homes with unsecured firearms. This puts people, especially kids in danger, as unsecured firearms are associated with higher rates of unintentional shootings and firearm suicide.
Brady President Kris Brown said:
"When guns end up in the wrong hands - whether it be by a child, a person in crisis, or someone who cannot pass a background check - tragedy is on the horizon. Secure firearm storage is the number one way we can prevent these situations before they happen. New York has long been a leader in gun violence prevention, and Francesco's law will continue that legacy by requiring all gun owners to safely store their firearms so that stories like Francesco's are far less likely. Brady thanks Assemblymember Anderson and Senator Bottcher for their leadership and now calls on Gov. Hochul, who has been a stalwart gun violence prevention champion, to finish the tireless efforts of Francesco's mother Diana - along with New York activists and New York legislators -- and sign this bill into law."
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Brady has one powerful mission -- to unite all Americans against gun violence. We work across Congress, the courts, and our communities with over 90 grassroots chapters, bringing together young and old, red and blue, and every shade of color to find common ground in common sense. In the spirit of our namesakes Jim and Sarah Brady, we have fought for over 45 years to take action, not sides, and we will not stop until this epidemic ends. It's in our hands.
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Original text here: https://www.bradyunited.org/press/new-york-francescos-law
[Category: Political]
AIC Releases Comment Letter Supporting DOL Proposed Rule Expanding Americans' Retirement Options
WASHINGTON, June 3 -- The American Investment Council issued the following news on June 2, 2026:
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AIC Releases Comment Letter Supporting DOL Proposed Rule Expanding Americans' Retirement Options
In a new comment letter released today, the American Investment Council (AIC) expressed its strong support for the Department of Labor's (DOL) proposed rule to strengthen retirements by expanding access to alternative assets through 401(k)s. The comment letter was submitted to the agency on June 1 as part of the proposal's public comment period.
AIC CEO and President Will Dunham released the following
... Show Full Article
WASHINGTON, June 3 -- The American Investment Council issued the following news on June 2, 2026:
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AIC Releases Comment Letter Supporting DOL Proposed Rule Expanding Americans' Retirement Options
In a new comment letter released today, the American Investment Council (AIC) expressed its strong support for the Department of Labor's (DOL) proposed rule to strengthen retirements by expanding access to alternative assets through 401(k)s. The comment letter was submitted to the agency on June 1 as part of the proposal's public comment period.
AIC CEO and President Will Dunham released the followingstatement:
"For decades, private investment has secured retirements for millions of teachers, firefighters, and public servants, but everyday savers have been unable to access the same options. The Department of Labor's proposed rule strengthens current law by giving plan managers a clearer roadmap for prudently evaluating alternative assets, including private equity and private credit. With this rule, more Americans will have the option of including private investment in their retirement savings strategy for increased diversification and higher returns."With its comment letter, AIC also submitted two new studies examining the benefits the proposed rule would have for everyday savers. A study by Dr. David T. Robinson, professor at Duke University's Fuqua School of Business, found alternative assets outperformed public benchmarks - adjusted for risk and net of fees - over 10-year time horizons or longer.
Additionally, a study conducted by Dr. Conrad Ciccotello, Director of the Reiman School of Finance at the University of Denver found if 40% of target date funds allocated 15% to alternative assets, workers would earn an additional $262 billion over 10 years and an additional $1,565 billion over 20 years.
More Choices Reduces Risk for Everyday Savers
Private investment has become a crucial source of diversification as the number of publicly traded companies has significantly shrunk over the last two decades. As the letter notes, in 1996 there were more than 8,000 publicly traded companies; by 2025, that number had more than halved to fewer than 4,000 companies. Recent public market gains are substantially driven by a handful of select technology companies. As more companies choose to remain private longer, many Americans are unable to benefit from their critical, early growth periods.
"A portfolio limited to public stocks and bonds may therefore give workers less exposure to the broader economy than it once did," the letter states. "Alternative assets can help fill that gap."
The diversification offered by private investments, which do not follow public markets in lockstep, can help reduce risk at the portfolio level.
Higher, Long-term Returns Strengthen Retirements
Public pension funds and institutions have long benefited from private investments, and a recent survey found 70% of workers want more access to private assets in their retirement plans.
"Retirement saving is long term saving," the letter states. In 2022, two-thirds of 401(k) participants were in their forties or younger. Savers' long-term time horizons make private investment a good fit for their goals and allow them to harness compound interest to maximize the benefits of private investments' higher returns net of fees.
According to the letter, "Research from the Georgetown Center for Retirement Initiatives--which found that private-market returns, net of fees, outpaced public markets by 3.6% on an annualized basis since 2000--shows that even modest exposure to private real assets, private credit, and private equity could improve defined-contribution outcomes by 7% to 8% across a range of participant savings patterns."For many savers, alternative assets would be offered within a diversified, professionally managed investment option, such as a target date fund, which automatically readjusts for risk and the liquidity and valuation needs of the plan and its participants as they reach their target retirement date. In 2024, an estimated 84% of 401(k) plan participants utilized target date funds. Professional asset managers, not individual plan participants, are responsible for deciding the appropriate level of exposure, balancing investments to meet liquidity needs, and other essential criteria.
Regulatory Clarity Reinforces Fiduciary Responsibilities
The Employee Retirement Income Security Act (ERISA) requires fiduciaries to act prudently and solely in the interest of 401(k) plan participants when building an investment menu. But many fiduciaries avoid any options including alternative assets - not because they wouldn't benefit plan participants, but out of fear of frivolous legal challenges. That puts everyday savers with 401(k)s at a disadvantage.
"The time and expense entailed in defending even meritless lawsuits is a significant deterrent to offering participants access to investment products that would improve retirement security for millions of workers," the letter states. "The Proposed Rule is an important step toward fixing that problem."
You can read AIC's statement on the DOL's release of its proposed rule here (https://www.investmentcouncil.org/aic-applauds-dol-for-expanding-americans-options-to-strengthen-their-retirements/).
You can read AIC's full comment letter to DOL here (https://www.investmentcouncil.org/aic-comment-letter-to-dol-on-fiduciary-duties-in-selecting-designated-investment-alternatives/).
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Original text here: https://www.investmentcouncil.org/aic-releases-comment-letter-supporting-dol-proposed-rule-expanding-americans-retirement-options/
[Category: Financial Services]
