The House passed the Retirement Fairness for Charities and Educational Institutions Act, H.R. 1013, on Nov. 11 by a vote of 295-128, with 83 Democrats joining all 211 Republicans in support.

Although the 2022 SECURE 2.0 Act allowed 403(b) plans to use collective investment trusts under the tax code, federal securities laws still prevent most plans from offering them.

The bill would let eligible 403(b) retirement plans invest in collective investment trusts and certain insurance company separate accounts—options already available to many 401(k) savers.

403(b) plans are commonly offered to employees of public schools, hospitals, churches and nonprofit organizations, and have faced federal restrictions on some investments.

Supporters, including Rep. Frank Lucas and Rep. Ann Wagner, say the change would give teachers, healthcare workers and nonprofit employees access to investment options available to private-sector workers.

The measure could broaden investment choices and competition, potentially lowering costs and giving workers more ways to grow their savings, but it would not require employers to offer the investments or guarantee higher returns.

A June 2025 Vanguard study estimated the change could add $23,000 to $28,000 to an individual worker’s savings over 40 years.

Opponents, including Rep. Maxine Waters and labor groups, argue that collective investment trusts could leave workers without federal securities protections because their plans are not covered by ERISA.

Sen. Katie Britt, sponsor of the Senate version, urged the Senate to pass the measure and said the White House supports it; her bill has more than 20 bipartisan cosponsors.

Britt introduced the Senate companion, S. 424, with Senator Raphael Warnock in February 2025, but it was referred to the Senate Committee on Banking, Housing, and Urban Affairs and has not advanced.

If the Senate approves the bill, it would go to President Donald Trump for his signature.