News Release
ICI Applauds Introduction of the GROWTH Act in the Senate
Washington, DC; May 21, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the Generating Retirement Ownership Through Long-Term Holding Act (GROWTH Act) was introduced in the U.S. Senate by Sen. John Cornyn (R-TX).
“The GROWTH Act will help level the playing field for American mutual fund investors by preventing them from being charged capital gains taxes when they haven’t yet realized any gains. Having them pay taxes only when they exit the fund or sell their investment is just logical and will incentivize Americans to save and invest for their long-term goals without having to worry about unexpected tax bills, helping them secure their financial futures. We strongly urge the passage of the GROWTH Act and thank Senator Cornyn for his leadership in helping millions of Americans on the road to retirement.”
Background:
The GROWTH Act was also previously introduced in the U.S. House of Representatives by Reps. Beth Van Duyne (R-TX-24) and Terri Sewell (D-AL-07) in March.
The bill would defer taxation of automatically reinvested capital gain distributions until shareholders actually sell their fund shares—allowing mutual fund shareholders to keep more of their own money working for them longer.
This approach will help investors maximize their long-term financial security.
ICI research estimates that households hold about $7 trillion of long-term mutual fund assets in nonretirement accounts, highlighting the significant impact this legislation could have in helping American investors.