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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6412 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6412
To establish an Independence Investment Fund to facilitate investments
in companies developing critical and emerging technologies, such as
biotechnology, that significantly enhance the national security and
economic security of the United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 3, 2025
Mr. Sessions (for himself, Ms. Houlahan, Mr. Khanna, Mrs. Bice, Mr.
Davis of North Carolina, and Mrs. McClain Delaney) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish an Independence Investment Fund to facilitate investments
in companies developing critical and emerging technologies, such as
biotechnology, that significantly enhance the national security and
economic security of the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Independence Investment Fund Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Adversarial investment.--The term ``adversarial
investment'' means capital or intellectual property acquisition
from 1 or more foreign entities of concern.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance of the Senate; and
(B) the Committee on Financial Services of the
House of Representatives.
(3) Critical and emerging technology.--The term ``critical
and emerging technology'' means a technology identified in the
most recent critical and emerging technologies list published
by the National Science and Technology Council.
(4) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given the term in section 10612(a)
of the Research and Development, Competition, and Innovation
Act (42 U.S.C. 19221(a)).
(5) Fund.--The term ``Fund'' means the Independence
Investment Fund established by section 3(a).
(6) Managing entity.--The term ``managing entity'' means
the independent entity that enters into a partner agreement
with the Secretary under section 4(a).
(7) Other transactions.--The term ``other transactions''
means transactions, other than procurement contracts, grants,
and cooperative agreements.
(8) Portfolio company.--The term ``portfolio company''
means a company in which the Fund invests.
(9) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3. ESTABLISHMENT OF FUND.
(a) In General.--There is established in the Department of the
Treasury an entity to be known as the ``Independence Investment Fund''.
(b) Objectives.--The objectives of the Fund shall be--
(1) to invest in companies developing critical and emerging
technologies that provide measurable improvements to the
national security or economic security of all or part of the
United States;
(2) to signal critical and emerging technology priorities
to private sector investors in order to unlock the deployment
of private capital to support companies;
(3) to make investments designed to generate financial
returns that enable self-sustainment of the Fund over time;
(4) to offer an alternate source of financial support to
companies vulnerable to adversarial investment; and
(5) to provide the Federal Government with situational
awareness over critical and emerging technology market trends,
such as new products and capabilities.
(c) Strategy.--The Secretary shall oversee the overall strategy of
the Fund, in consultation with the Secretary of Defense and the
Secretary of Commerce, by determining--
(1) national security and economic security needs that the
Fund shall meet; and
(2) the technological priorities of the Fund, including
what critical and emerging technology products and capabilities
will be considered significant to national security and
economic security needs.
(d) Priority.--Biotechnology shall be a priority of the Fund.
(e) Investments.--
(1) In general.--The Fund shall make seed to mid-stage
equity investments in technology companies that are
headquartered in the United States.
(2) Amount.--The Fund may make investments of any amount,
but shall seek to achieve an average investment amount between
$1,000,000 and $10,000,000.
(f) Outside Investments and Partnerships.--As appropriate, the Fund
may--
(1) make investments in companies that are headquartered
outside of the United States, other than in a foreign entity of
concern; and
(2) partner with venture capital funds of a country other
than the United States, other than a foreign entity of concern.
(g) Advisory Board.--
(1) In general.--There is established an advisory board to
the Fund (referred to in this subsection as the ``advisory
board''), to advise the Secretary on the establishment and
implementation of the Fund.
(2) Membership.--
(A) In general.--Subject to subparagraphs (B) and
(C), the Secretary shall select members to serve on the
advisory board.
(B) Experience.--In selecting members for the
advisory board, the Secretary shall seek to include--
(i) individuals with demonstrated
experience in the financing of critical and
emerging technologies, including through the
use of strategic venture capital and equity
financing practices and methods;
(ii) individuals with demonstrated
experience in managing public-private
partnerships to meet Federal Government needs
in critical and emerging technologies; and
(iii) individuals with demonstrated
experience in determining how critical and
emerging technologies can meet national
security or economic security needs of the
United States.
(C) Biotechnology expertise.--1 member of the
advisory board shall be a senior official in the
Executive Office of the President focused on
biotechnology and national security.
(3) Duties.--The advisory board, in consultation with the
Secretary, shall recommend to the Secretary each of the
following for the Fund:
(A) Roadmap.--A roadmap to guide the establishment
and implementation of the Fund, including--
(i) a clear articulation of specific goals
and milestones for the Fund to meet the
objectives described in subsection (b),
including timelines for meeting those goals and
milestones;
(ii) the bylaws, rules, regulations,
policies, and procedures governing the manner
in which the business of the Fund may be
conducted and in which the powers granted to
the Fund by law may be exercised; and
(iii) the solicitation process for the
managing entity described in section 4.
(B) Operating guidance.--Operating procedures to be
followed by the Fund in carrying out the duties and
purposes of the Fund, including--
(i) criteria, requirements, and standards
regarding the provisions of the investments
made by the Fund; and
(ii) disclosure and reporting requirements
for portfolio companies.
(C) Other details.--Decisions on all other details
necessary for the implementation of the Fund, which may
include--
(i) provisions of non-financial assistance
to portfolio companies, such as mentorship in
partnering with government entities, regulatory
guidance, computational resources, and
connectivity to potential customers;
(ii) handling of intellectual property;
(iii) ability or requirement for the Fund
to have a board or board observer seat in
portfolio companies;
(iv) a formal or informal mechanism
directing the Fund to consider investments in
companies that have had an investment round
blocked or reversed by the Committee on Foreign
Investment in the United States;
(v) a requirement for portfolio companies
to report to the Committee on Foreign
Investment in the United States in the case of
a proposed sale or merger with a foreign
company;
(vi) a prohibition against portfolio
companies accepting investment from entities
established in foreign entities of concern; and
(vii) an option for the Fund to sell equity
back to the portfolio company if the company
develops in a direction antithetical to the
objectives described in subsection (b).
(4) Report.--Not later than 180 days after the date of
enactment of this Act, the advisory board shall submit to the
Secretary and the appropriate congressional committees a report
that describes the recommendations made under paragraph (3).
(5) Staff.--To assist the advisory board in carrying out
the duties under this subsection, the Secretary shall appoint a
professional staff of 3 employees, who may be full-time
employees of the Department of the Treasury.
(6) FACA.--Chapter 10 of title 5, United States Code
(commonly referred to as the ``Federal Advisory Committee
Act''), shall not apply to the advisory board.
(7) Sunset.--The advisory board shall terminate on the date
that is 90 days after the date on which the report under
paragraph (4) is submitted to the Secretary and the appropriate
congressional committees.
(h) Supervisory Board.--
(1) In general.--Not later than 30 days after the
termination of the advisory board under subsection (g)(7), the
Secretary shall establish a supervisory board to the Fund
(referred to in this subsection as the ``supervisory board''),
to provide the Secretary with ongoing oversight of the Fund and
the managing entity.
(2) Membership.--
(A) In general.--The supervisory board shall
consist of 5 members, whom the Secretary shall select,
subject to subparagraphs (B) and (C).
(B) Experience.--In selecting members for the
supervisory board, the Secretary shall seek to
include--
(i) individuals with demonstrated
experience in the financing of critical and
emerging technologies, including through the
use of strategic venture capital and equity
financing practices and methods;
(ii) individuals with demonstrated
experience in managing public-private
partnerships to meet Federal Government needs
in critical and emerging technologies; and
(iii) individuals with demonstrated
experience in determining how critical and
emerging technologies can meet national
security or economic security needs of the
United States.
(C) Selection.--In appointing members to the
supervisory board, the Secretary shall include--
(i) 1 representative from the Department of
the Treasury;
(ii) 1 representative from the managing
entity; and
(iii)(I) for the initial appointment of the
supervisory board, 3 representatives from the
advisory board that are not affiliated with the
Department of the Treasury or the managing
entity; and
(II) for subsequent appointments to the
supervisory board, 3 individuals who meet the
criteria under subparagraph (B).
(D) Terms.--
(i) In general.--The term of each member of
the supervisory board shall be 3 years.
(ii) Reappointment.--
(I) In general.--Except as provided
in subclause (I), a member of the
supervisory board may be reappointed to
not more than 2 consecutive terms
immediately following the initial term
of the member.
(II) Exception.--The limitation
under subclause (I) shall not apply to
a member of the supervisory board
described in clause (i) or (ii) of
subparagraph (C).
(3) Duties.--The supervisory board, in consultation with
the Secretary, shall carry out each of the following for the
Fund:
(A) General oversight.--Provide general oversight
of the Fund and managing entity.
(B) Investment oversight.--Serve as an investment
committee, with all investment decisions subject to a
vote of approval by the supervisory board, subject to
the conditions that--
(i) at least 4 of the 5 members of the
supervisory board shall be present for a voting
quorum; and
(ii) at least 3 members shall vote in favor
of an investment in order for the investment to
be approved.
(4) FACA.--Chapter 10 of title 5, United States Code
(commonly referred to as the ``Federal Advisory Committee
Act''), shall not apply to the supervisory board.
SEC. 4. MANAGING ENTITY OF FUND.
(a) In General.--To support the objectives described in section
3(b), the Secretary shall enter into an agreement (including through
the use of grants, contracts, cooperative agreements, or other
transactions) with an independent entity that shall serve as the
managing entity of the Fund.
(b) Selection.--To select the managing entity of the Fund, the
Secretary shall--
(1) hold an open competition and solicit bids from eligible
entities to manage the Fund; and
(2) enter into an agreement with a selected entity not
later than 180 days after the date on which the Secretary
begins the competition.
(c) Eligibility.--The managing entity shall--
(1) be an independent nonprofit or for-profit entity;
(2) have a demonstrated record of managing investment funds
and making equity investments;
(3) have a demonstrated record of being able to create
linkages between companies and investors and leverage those
partnerships and resources for the purpose of addressing
strategic needs; and
(4) have experience in promoting novel technology
innovation.
(d) Other Transaction Authority.--
(1) In general.--Subject to paragraph (2), the Secretary
may enter into other transactions with the managing entity to
carry out the purposes of this Act.
(2) Limitation.--To the maximum extent practicable,
competitive procedures shall be used when entering into other
transactions under this subsection.
(e) Duties.--The managing entity shall--
(1) be responsible for the management of the Fund through
employing the use of strategic venture capital practices and
methods;
(2) develop and advance an investment strategy for the
development of critical and emerging technologies that address
United States national security and economic security needs, as
identified by the Secretary; and
(3) provide expert consultation and advice to foster
critical and emerging technology innovation, including helping
companies navigate unique industry challenges with respect to
developing critical and emerging technology products and
capabilities.
(f) Direction.--Pursuant to an agreement entered into under this
section and in coordination with the supervisory board established
under section 3(h), the Secretary shall provide direction to the
managing entity, including by--
(1) communicating the national security and economic
security needs to be addressed by the managing entity under the
agreement;
(2) developing a description of work to be performed by the
managing entity under the agreement;
(3) providing technical feedback and appropriate oversight
over work carried out by the managing entity, including
subsequent development and partnerships consistent with the
needs and requirements described in this section;
(4) ensuring fair consideration of products developed under
the agreement in order to maintain competition to the maximum
extent practicable; and
(5) ensuring, as a condition of the agreement, that the
managing entity--
(A) has in place a comprehensive set of policies
that demonstrate a commitment to transparency and
accountability;
(B) protects against conflicts of interest through
a comprehensive set of policies that address potential
conflicts of interest, ethics, disclosure, and
reporting requirements;
(C) provides monthly accounting on the use of funds
provided under the agreement; and
(D) provides on a quarterly basis reports regarding
the progress made toward meeting the needs described in
the agreement.
(g) Not a Federal Agency.--The Fund shall not be considered to be
an agency, department, or instrumentality of the Federal Government.
SEC. 5. PERSONNEL AUTHORITIES.
The Secretary may--
(1) appoint not more than 25 personnel without regard to
any provision of title 5, United States Code, governing
appointments in the competitive service; and
(2) fix the rate of basic pay for such personnel without
regard to any provision of title 5, United States Code,
governing rates of pay or classification of employees in the
executive branch, subject to the condition that the rate of
basic pay shall not exceed the amount of annual compensation
(excluding expenses) specified in section 102 of title 3,
United States Code.
SEC. 6. REPORTING REQUIREMENTS.
Not later than October 1 of each year, the Secretary shall submit
to the appropriate congressional committees a report of the operations
of the Fund during the preceding fiscal year, including an assessment
of--
(1) the impacts of investments on meeting the objectives of
the Fund described in section 3(b);
(2) performance measurements of investments;
(3) the progress of the Fund in meeting the goals and
milestones developed by the advisory board under section
3(g)(3)(A)(i), including timelines for those goals and
milestones; and
(4) the extent to which the investments complement other
Federal financing mechanisms for critical and emerging
technologies.
SEC. 7. EXEMPTION FROM CERTAIN LAWS.
Any action taken or decision made by the Secretary under this Act
shall be exempt from the requirements of--
(1) section 3506 of title 44, United States Code (commonly
referred to as the ``Paperwork Reduction Act''); and
(2) chapters 5 and 7 of title 5, United States Code
(commonly referred to as the ``Administrative Procedure Act'').
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry
out this Act $975,500,000 for fiscal year 2025, of which $300,000,000
shall be for biotechnology investments, to remain available until
expended.
(b) Administrative and Operating Costs.--There are authorized to be
appropriated for the administrative and operating costs of carrying out
this Act--
(1) $2,000,000 for fiscal year 2025; and
(2) $22,000,000 for each of fiscal years 2026 through 2040.
(c) Conditional Authorization of Appropriations.--
(1) In general.--Subject to paragraph (2), during the
period of fiscal years 2035 through 2040, if the cash balance
available for biotechnology investments in the Fund is less
than $80,000,000 on September 30 of any of those fiscal years,
there is authorized to be appropriated to carry out this Act
for the following fiscal year $500,000,000, of which
$150,000,000 shall be for biotechnology investments.
(2) Limitation.--Not more than $500,000,000 is authorized
to be appropriated under paragraph (1) during the period
described in that paragraph.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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