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S. 1670119th CongressIn committeeLatest action May 8, 2025Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
This bill would require index fund managers to ask individual investors how to vote their shares instead of deciding for them.
55-second read · 4 questions answered below
This bill would require investment advisers who manage index funds and similar passively managed funds to pass voting decisions back to the individual investors who own shares in those funds. When a fund holds more than 1 percent of a company's shares, the adviser must ask each investor how they want their votes cast and then follow those instructions. If an investor does not respond, the adviser generally cannot vote those shares, with limited exceptions for routine matters or certain votes requiring majority approval.
This bill affects investment advisers managing index funds, including large firms like BlackRock, Vanguard, and State Street, as well as the individual investors in those funds, including everyday retirement savers. It also affects the companies whose shareholder votes would now reflect a wider range of individual investors rather than a small number of large asset managers.
Right now, large investment firms vote enormous blocks of shares on behalf of millions of investors, giving those firms significant influence over major U.S. companies. This bill would shift that influence toward individual investors.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.