The U.S. Senate Committee on Banking, Housing and Urban Affairs announced that a group of senators and representatives reintroduced legislation designed to make private equity firms and their general partners responsible for liabilities at companies they control. The proposal would cover debt, legal judgments and pension obligations while excluding limited partners. It would also restrict value extraction from portfolio companies, end tax benefits for excessive leverage and carried interest, and increase disclosure of fund fees, returns and corporate lending. The bill would raise workers’ priority claims for unpaid earnings and benefits in bankruptcy from USD 10,000 to USD 20,000, create incentives to retain jobs and expose private equity firms to liability when controlled companies violate laws, including the Worker Adjustment and Retraining Notification Act. Firms receiving federal or state funds would have to disclose their use and could not acquire companies or distribute money to investors for two years. Additional provisions would restrict real estate investment trust involvement in health care and remove specified tax benefits for REIT investors. The reintroduction follows the enactment this summer of legislation preventing private equity firms and other corporate landlords from buying single-family homes.
2026-09-24U.S. Senate Committee on Banking, Housing and Urban Affairs
U.S. Senate Committee on Banking, Housing and Urban Affairs announces reintroduction of private equity accountability bill
The U.S. Senate Committee on Banking, Housing and Urban Affairs announced the reintroduction of legislation that would make private equity firms and general partners liable for obligations at controlled companies while limiting value extraction and tax advantages. The bill would also strengthen worker protections, expand investor disclosures, restrict firms receiving public funds and curb real estate investment trust involvement in health care.