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HR 10336

Too Narrow to Succeed Act

118th Congress Introduced by Joyce Beatty

Requires annual, public reports on federal asset managers, disclosing use of diverse-owned firms (race/gender), barriers to inclusion, and steps to broaden diverse participation.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 10336

Summary of H.R. 10336 — Too Narrow to Succeed Act

Overview

  • Bill number: H.R. 10336
  • Title: Too Narrow to Succeed Act
  • Purpose: To improve access for diverse-owned asset management firms (including women- and minority-owned) by increasing transparency in Federal investment processes, identifying barriers to participation, and encouraging broader, more inclusive selection practices by both public and private retirement funds, in alignment with fiduciary duties.
  • Introduced: December 10, 2024
  • Sponsor: Representative Joyce Beatty (primary)
  • Status: Introduced in the House; referred to the Committee on Oversight and Accountability and additional committees (Education and the Workforce; Financial Services; Transportation and Infrastructure; Armed Services; House Administration)

What the bill would do

  • Require annual reporting by Federal institutional investors that use or contract with asset managers to manage Federal investments, and to include their subcontractor asset management firms.
  • Require disclosures about the use of diverse-owned asset management firms versus non-diverse-owned firms, with data disaggregated by race, ethnicity, and gender.
  • Require reporting on:
    • Barriers to reporting on diverse-owned firms
    • Barriers to selecting diverse-owned firms (including via subcontractors)
    • Actions taken (or planned) to alleviate barriers
    • Actions taken (or planned) to increase opportunities for diverse-owned firms to compete for contracts
  • Require the Secretary of Labor to evaluate industry benchmarks to determine what constitutes a “diverse-owned” asset management firm.
  • Make each annual report publicly available.

Key definitions

  • Asset management firm: An investment firm that:
    • Manages a securities or asset portfolio for a defined benefit plan or institutional investor; or
    • Offers investment options (e.g., mutual funds, private equity, real estate) for participation in a defined contribution or similar retirement plan.
  • Diverse-owned: Thresholds or requirements for qualifying as diverse-owned determined or set by the Secretary.
  • Federal institutional investor: Includes entities such as the Federal Retirement Thrift Investment Board; funds administered for the PBGC, NRRIT, Federal Reserve retirement plans, TVA retirement systems, military exchanges, Smithsonian endowments, and other Federal entities managing large funds using asset management services.
  • Subcontractor asset management firm: An asset management firm contracted by or through a primary asset manager that manages Federal investments on behalf of a Federal institutional investor.
  • Secretary: Secretary of Labor.

Who would be affected

  • Federal institutional investors that outsource management of investments to asset management firms (and their subcontractors). Examples cited in the definitions include:
    • Thrift Savings Plan and related Federal retirement funds
    • PBGC funds, NRRIT funds, TVA retirement systems and plans
    • Federal Reserve retirement-related funds
    • Army/Navy/other military exchange service retirement programs
    • Smithsonian Institution endowment funds
  • Asset management firms (both diverse-owned and non-diverse-owned), with a particular emphasis on increasing participation of diverse-owned firms in federal investment management.
  • Public and private retirement funds that administer or manage assets and make investment selections.

Implementation and timeline

  • First annual report due within one year of enactment, with subsequent annual reports thereafter.
  • Reports must cover asset allocations by fund, barriers to reporting and procurement, and actions to expand opportunities for diverse-owned firms.
  • The Secretary of Labor will publish the reports for public access and determine criteria for diverse-owned status using industry benchmarks.

Potential impact

  • Increases transparency around how Federal institutional investors select asset management partners.
  • Encourages broader participation of diverse-owned asset management firms in managing Federal investments.
  • Identifies and addresses barriers to inclusion and competition, potentially expanding opportunities for diverse-owned firms in both public and private retirement markets.
  • Supports alignment with fiduciary duties by promoting inclusive practices that seek to maximize returns while managing systemic risk.

Legislative status and next steps

  • referrals: Oversight and Accountability; plus Education and the Workforce; Financial Services; Transportation and Infrastructure; Armed Services; House Administration
  • Next steps: Committee consideration and possible amendments, followed by floor action.

Compiled from official sources — confirm details with the bill’s official record.

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