What does Preamble of Independence Investment Fund Act do?

This bill, formally titled '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,' aims to establish an Independence Investment Fund. The fund is intended to facilitate investments in companies focused on critical and emerging technologies. Examples of these technologies include biotechnology. The bill states that the fund's purpose is to enhance both the national security and economic security of the United States.

What does SHORT TITLE. of Independence Investment Fund Act do?

This bill is formally titled the Independence Investment Fund Act.

What does DEFINITIONS. of Independence Investment Fund Act do?

This section defines terms used throughout the Act. “Adversarial investment” is defined as capital or intellectual property acquisition from foreign entities of concern. “Appropriate congressional committees” refers to the Senate Committee on Finance and the House Committee on Financial Services. “Critical and emerging technology” is defined by the National Science and Technology Council’s most recent list. “Foreign entity of concern” is defined by section 10612(a) of the Research and Development, Competition, and Innovation Act. The “Fund” is the Independence Investment Fund established by section 3(a). The “managing entity” is the independent entity that enters into a partner agreement with the Secretary under section 4(a). “Other transactions” are defined as transactions excluding procurement contracts, grants, and cooperative agreements. A “portfolio company” is a company in which the Fund invests. “Secretary” refers to the Secretary of the Treasury.

What does ESTABLISHMENT OF FUND. of Independence Investment Fund Act do?

This section establishes the "Independence Investment Fund" within the Department of the Treasury. The Fund's objectives include investing in companies developing critical and emerging technologies, signaling technology priorities to private investors, generating financial returns, supporting companies vulnerable to adversarial investment, and providing situational awareness of market trends. The Secretary oversees the Fund's strategy, consulting with the Secretaries of Defense and Commerce. Biotechnology is designated as a priority for the Fund. The Fund will make seed to mid-stage equity investments in U.S.-headquartered technology companies, with an average investment amount between $1,000,000 and $10,000,000. The Fund may make investments in companies outside the U.S. (excluding foreign entities of concern) and partner with foreign venture capital funds (also excluding foreign entities of concern). An advisory board is established to advise the Secretary on the Fund's establishment and implementation, and will recommend a roadmap, operating guidance, and other details. The advisory board will terminate 90 days after submitting its report to the Secretary and Congress. A supervisory board will be established to provide ongoing oversight of the Fund and its managing entity, with investment decisions requiring approval by at least 3 of its 5 members.

What does MANAGING ENTITY OF FUND. of Independence Investment Fund Act do?

This section establishes the managing entity of the Fund, which will support objectives outlined in section 3(b). The Secretary will enter into an agreement with an independent entity to serve as the managing entity, potentially through grants, contracts, or other transactions. The selection of the managing entity will involve an open competition and must be completed within 180 days of the competition's start. Eligible managing entities must be nonprofit or for-profit, have experience managing investment funds and making equity investments, and have a record of creating linkages between companies and investors. The managing entity is responsible for managing the Fund using strategic venture capital practices and developing an investment strategy for critical and emerging technologies. The managing entity will provide expert consultation to foster technology innovation and help companies navigate industry challenges. The Secretary will provide direction to the managing entity, including communicating national security needs and providing technical feedback. The agreement with the managing entity will require transparency, accountability, conflict of interest mitigation, monthly accounting, and quarterly progress reports. The Fund is explicitly not considered a federal agency.

What does PERSONNEL AUTHORITIES. of Independence Investment Fund Act do?

This section grants the Secretary authority to appoint up to 25 personnel outside of standard competitive service hiring procedures. The Secretary can also set the basic pay rate for these personnel. Pay rates are not subject to standard executive branch pay and classification rules. The basic pay rate cannot exceed the annual compensation specified in section 102 of title 3, United States Code (excluding expenses).

What does REPORTING REQUIREMENTS. of Independence Investment Fund Act do?

This section establishes annual reporting requirements for the Secretary. The Secretary must submit a report to the appropriate congressional committees by October 1 each year. The report must cover the Fund's operations during the preceding fiscal year. The report must include an assessment of the impacts of investments on meeting the Fund's objectives as described in section 3(b). The report must include performance measurements of investments. The report must detail the Fund's progress in meeting goals and milestones developed by the advisory board under section 3(g)(3)(A)(i), including timelines. The report must assess the extent to which investments complement other Federal financing mechanisms for critical and emerging technologies.

What does EXEMPTION FROM CERTAIN LAWS. of Independence Investment Fund Act do?

This section establishes an exemption for actions and decisions made by the Secretary under this Act. These actions are exempt from the Paperwork Reduction Act (section 3506 of title 44, United States Code). They are also exempt from chapters 5 and 7 of title 5, United States Code, which are commonly referred to as the Administrative Procedure Act.

What does AUTHORIZATION OF APPROPRIATIONS. of Independence Investment Fund Act do?

This section authorizes appropriations to carry out the Act. For fiscal year 2025, $975,500,000 is authorized, with $300,000,000 specifically for biotechnology investments, which will remain available until expended. An additional $2,000,000 is authorized for fiscal year 2025 for administrative and operating costs, with $22,000,000 authorized for each fiscal year from 2026 through 2040 for these costs. Between fiscal years 2035 and 2040, if the cash balance for biotechnology investments falls below $80,000,000 on September 30, an additional $500,000,000 may be appropriated for the following fiscal year, including $150,000,000 for biotechnology investments. The total amount authorized under the conditional appropriation provision is capped at $500,000,000.

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Independence Investment Fund Act

Last updated: 12/3/2025 · Introduced: 12/3/2025

Author: Pete Sessions (R-TX)

TL;DR (AI)

This bill establishes the Independence Investment Fund within the Treasury Department to invest in U.S.-headquartered companies developing critical and emerging technologies, including biotechnology, to bolster national and economic security.
The Fund will primarily make seed to mid-stage equity investments ranging from $1 million to $10 million, with a focus on signaling technology priorities to private investors and supporting companies vulnerable to adversarial investment.
An independent managing entity, selected through a competitive process, will oversee the Fund's investments using venture capital practices and provide expert consultation to technology companies.
The Secretary of the Treasury, with input from the Secretaries of Defense and Commerce, will oversee the Fund’s strategy and appoint up to 25 personnel with flexible pay rates outside standard government procedures.
The bill authorizes over $2.9 billion in appropriations, including $975.5 million for fiscal year 2025 and an additional $500 million potentially available between 2035 and 2040 if biotechnology investments fall below a certain threshold.

119th Congressin committeeOfficial page

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