President Trump remarked on retirement policy during his State of the Union address, noting that “..half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer”, and that “..next year, my administration will give these often forgotten American workers…access to the same type of retirement plan offered to every federal worker.” The president further noted that contributions would be matched, up to $1,000 per year. 

Presumably the matching contribution of up to $1,000 was in reference to the Saver's Match that will become available in 2027 pursuant to SECURE 2.0. Recall that SECURE 2.0 revised the Saver's Credit by making it a government-paid matching contribution that would be claimed on a tax return and deposited to a traditional IRA or pretax deferral account of an eligible retirement plan. This Saver’s Match is equal to 50 percent of a taxpayer’s qualified retirement savings contributions (up to $2,000), until a taxpayer’s modified adjusted gross income reaches a given threshold, at which point the 50 percent matching percentage is phased out.

The exact policy or program the president was alluding to in order to address the access gap isn't as clear. One approach that the administration may be contemplating is leveraging a program similar to the myRA program—an account type launched by the Treasury during the Obama administration intended for individuals who lacked access to employer-sponsored retirement plans. While the program was short lived due to low participation and high costs, it was a solution that didn't require Congressional approval and, taken in tandem with the Saver's Match could yield different results if attempted again.

Legislators of course have put forward numerous proposals to address the coverage gap. One such proposal is the Retirement Savings for Americans Act (RSAA), which would establish a government program for eligible workers and provide federal contributions to low and middle- income workers, with investment options and other features similar to the Thrift Savings Plan for federal employees. These types of policy proposals need to work their way through the legislative process in order to be advanced. 

There has been a lot of speculation around the appetite for another reconciliation bill which, as with the One Big Beautiful Bill enacted last year, would allow passage of certain legislation by a simple majority in both chambers of Congress. However, to date there has not been alignment by key stakeholders on a path forward with another reconciliation bill. 

With a potential rollout next year, certainly more details are needed. But as Treasury continues to work out details of the Saver's Match implementation, we can expect further updates in the coming weeks and months.