As over 80% of U.S. Agency for International Development programs officially end, many contractors that rely on USAID funding face plummeting stocks and potential bankruptcy. Employees not only stand to lose their jobs but also the funds that they invested in the company’s stock.
Several USAID contractors encourage employees to take out employee stock ownership plans, or ESOPs, which gives workers ownership interest in the company.
U.S. Secretary of State Marco Rubio was a big proponent of ESOPs as senator, leading the creation of The Employee Equity Investment Act in 2023, which provides up to $5 billion in loan guarantees for private investment funds called Employee Equity Investment Companies, devoted to boosting employee ownership.