S. 1670 · Where this bill is now
In committee
Introduced in the Senate, May 8, 2025
What this bill does
In plain words · AI-written from the official summaryRules for how index funds vote shares
Index funds are investment funds that track broad market baskets of stocks. When companies hold shareholder votes, index funds currently vote all their shares as a block. This bill would require these funds to generally vote shares based on the specific instructions of their investors instead, so each investor's preferences get counted separately. The bill does make an exception for routine matters and situations where a majority vote is needed.
How it affects you
If you own shares through an index fund, this bill would give you a way to have your voice heard in corporate votes rather than having the fund vote all shares the same way. Investment advisers who manage these funds would have some protection from legal liability under the new rules.
Read the official summary (Introduced in Senate, May 8, 2025)
INvestor Democracy is EXpected Act or the INDEX Act
This bill establishes guidelines for passively managed funds (e.g., index funds) that vote shares on behalf of fund investors in proxy shareholder votes. Under the bill, these funds generally must vote shares on a proportional basis according to instructions from fund investors.
The bill establishes an exemption for routine matters and matters requiring approval of a majority of outstanding securities. Additionally, the bill establishes a safe harbor from these requirements for investment advisers.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1670
A BILL
INDEX Act
Sponsor: Sen. Dan Sullivan (R-AK) · Introduced May 8, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action May 8, 2025: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.”