Independence Investment Fund Act

Bill Number

H.R. 6412

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-12-03: Referred to the House Committee on Financial Services.

Last Updated

2026-04-17T16:13:32Z

AI-Generated Summary

Purpose

The Independence Investment Fund Act (H.R. 6412) aims to create a new investment fund within the U.S. Department of the Treasury to support companies developing critical and emerging technologies—such as biotechnology—that strengthen U.S. national security (protection from threats) and economic security (stability and growth). The fund seeks to counter foreign adversarial investments (capital or intellectual property from hostile foreign sources) by providing alternative U.S.-based funding, signaling priorities to private investors, and generating returns to sustain itself over time.

Key Provisions

• Fund Establishment and Objectives: Creates the Independence Investment Fund (the "Fund") in the Treasury Department. Its goals include investing in technologies that improve security, attracting private capital, achieving financial self-sustainability, supporting vulnerable companies, and monitoring market trends.
• Strategy and Priorities: The Treasury Secretary, in consultation with the Secretaries of Defense and Commerce, sets the Fund's strategy based on security needs. Biotechnology is explicitly prioritized.
• Investments: Focuses on seed to mid-stage equity investments (ownership stakes) in U.S.-headquartered technology companies, with average investments between $1 million and $10 million. Limited outside investments are allowed in non-U.S. companies or partnerships, excluding "foreign entities of concern" (hostile foreign governments or companies, as defined in existing law).
• Governance Structures:
• Advisory Board: Temporary group of experts (including biotech specialists) to recommend setup details, such as goals, procedures, and non-financial support (e.g., mentorship or regulatory guidance). Exempt from the Federal Advisory Committee Act (rules for government advisory groups). Submits a report within 180 days and sunsets after 90 days.
• Supervisory Board: Ongoing 5-member oversight body (including Treasury and managing entity representatives) for approving investments and general supervision. Also exempt from the Federal Advisory Committee Act. Members serve 3-year terms, with reappointment limits.
• Managing Entity: An independent nonprofit or for-profit organization, selected through open competition within 180 days, manages daily operations using venture capital methods. Must have expertise in investments and innovation. The Secretary provides direction via agreements, including oversight and conflict-of-interest policies. The Fund itself is not considered a federal agency.
• Personnel and Operations: Allows the Secretary to appoint up to 25 staff outside standard civil service rules, with pay capped at executive-level rates. Authorizes other transactions (flexible agreements beyond standard contracts or grants).
• Reporting and Exemptions: Annual reports to Congress on Fund performance. Exempts Fund actions from the Paperwork Reduction Act (rules reducing paperwork burdens) and Administrative Procedure Act (rules for government rulemaking and hearings).
• Funding: Authorizes $975.5 million for fiscal year 2025 ($300 million for biotech), plus administrative funds through 2040. Additional $500 million possible in later years if biotech balances fall below $80 million, capped overall.

Significant Changes to Existing Law

This bill introduces an entirely new entity (the Fund) and mechanisms, rather than amending prior laws directly. It creates novel flexibilities, such as exemptions from procedural laws (e.g., Administrative Procedure Act) to speed operations, and defines terms like "adversarial investment" and references existing definitions (e.g., "foreign entity of concern" from the 2022 Research and Development, Competition, and Innovation Act). It also establishes unique governance with advisory and supervisory boards exempt from standard advisory committee rules, enabling faster setup and decisions compared to traditional federal investment programs.

Potential Impacts

• Government Agencies: Enhances coordination among Treasury, Defense, and Commerce for tech strategy; provides Treasury with new investment tools and personnel authorities, potentially streamlining federal support for innovation but increasing administrative burdens through reporting.
• Citizens and Economy: Boosts U.S. tech development, job creation in critical sectors like biotech, and economic competitiveness by reducing reliance on foreign funding. Could improve access to innovative products (e.g., advanced biotech for health or defense) for citizens.
• International Relations: Counters influence from adversarial nations (e.g., by blocking or monitoring foreign investments in portfolio companies), potentially straining ties with those countries while fostering U.S. alliances through selective partnerships. May signal U.S. priorities globally, encouraging allied investments in shared technologies.

Main Stakeholders Affected

• U.S. Technology Companies: Especially early- to mid-stage firms in critical technologies (e.g., biotech), gaining alternative funding and support to avoid foreign dependencies.
• Investors and Venture Capital Firms: Private sector entities benefiting from signaled priorities and potential partnerships, with opportunities to co-invest.
• Federal Government: Treasury (lead oversight), Defense, and Commerce (strategy input); Congress (receives reports and authorizes funds).
• Foreign Entities: "Entities of concern" (e.g., certain Chinese or Russian-linked firms) face barriers, as portfolio companies may be prohibited from accepting their investments.
• Biotech and Innovation Experts: Serve on boards or provide consultation, influencing national priorities.

Notable Legal, Constitutional, or Political Implications

• Legal: Exemptions from key procedural laws (e.g., Administrative Procedure Act) allow quicker actions but could limit public input or judicial review, raising accountability concerns. Use of "other transactions" provides flexibility beyond standard federal contracting, potentially reducing oversight.
• Constitutional: Aligns with Congress's spending power (Article I) to promote general welfare and defense, but the Fund's non-agency status and board exemptions might test separation of powers by blending public-private roles without full federal controls.
• Political: Bipartisan sponsorship (e.g., from both parties) suggests broad support for countering foreign tech threats, but long-term funding (through 2040) could spark debates on federal intervention in private markets versus fostering innovation. Self-sustainability goal aims to minimize ongoing taxpayer costs, though initial appropriations are substantial.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Sessions, Pete [R-TX-17]

Cosponsors (5)

Rep. Houlahan, Chrissy [D-PA-6], Rep. Khanna, Ro [D-CA-17], Rep. Bice, Stephanie I. [R-OK-5], Rep. Davis, Donald G. [D-NC-1], Rep. McClain Delaney, April [D-MD-6]

Recent Actions

• 2025-12-03: Referred to the House Committee on Financial Services.
• 2025-12-03: Introduced in House
• 2025-12-03: Introduced in House

Bill Versions

• Independence Investment Fund Act — issued 2025-12-03 — PDF (19 pages)