HR6412-119

What This Bill Does

The Independence Investment Fund Act creates a new Treasury entity to invest in critical and emerging technology companies that advance U.S. national security or economic security. The Fund is intended to signal federal technology priorities, unlock private capital, produce financial returns that let the Fund sustain itself, offer alternatives to adversarial investment, and give the Federal Government market awareness. Treasury sets strategy in consultation with Defense and Commerce; biotechnology must be a priority. The Fund makes seed-to-mid-stage equity investments in U.S.-headquartered technology companies, seeks average investments of $1,000,000 to $10,000,000, and may invest in or partner with non-U.S. firms or venture funds so long as they are not foreign entities of concern. The bill creates an advisory board to recommend the roadmap, bylaws, operating procedures, investment standards, portfolio-company disclosure, non-financial assistance, intellectual-property handling, and possible CFIUS-related investment mechanisms. After the advisory board terminates, Treasury must create a five-member supervisory board that provides oversight and acts as an investment committee, with a four-member quorum and three affirmative votes needed for investment approval. Treasury must competitively select an independent nonprofit or for-profit managing entity within 180 days to manage the Fund using strategic venture-capital practices. The bill lets Treasury appoint up to 25 personnel outside ordinary competitive-service and pay-classification rules, requires annual October 1 reports to the tax and financial-services committees, exempts actions from Paperwork Reduction Act and Administrative Procedure Act requirements, and authorizes $975,500,000 for FY2025, including $300,000,000 for biotechnology, plus $2,000,000 for FY2025 administration, $22,000,000 annually for FY2026 through FY2040, and a conditional 2035-2040 biotechnology replenishment of up to $500,000,000 if cash falls below $80,000,000.

Who Benefits and How

Critical technology developers benefit from seed-to-mid-stage equity capital, non-financial assistance, customer connections, and a federal priority signal that can attract private capital. Biotechnology manufacturers receive an explicit priority and $300,000,000 set-aside in the initial authorization. Venture capital fund managers benefit from the competition to manage the Fund. Private investors benefit if federal investments validate national-security technology markets. Treasury Department analysts, Defense Department planners, and Commerce Department planners benefit from better situational awareness of critical technology markets and adversarial investment pressure.

Who Bears the Burden and How

Treasury Department administrators must build and oversee the Fund, select the managing entity, appoint boards and personnel, set priorities with Defense and Commerce, approve investments, and report annually. Fund managers must run a strategic venture portfolio under federal oversight and disclosure rules. Portfolio company applicants may face disclosure, board-observer, intellectual-property, and national-security conditions. Foreign entity applicants are excluded from investments and partnerships when they are entities of concern. Federal taxpayers fund the $975,500,000 initial authorization, operating costs through FY2040, and possible biotechnology replenishment.

Key Provisions

• Establishes the Independence Investment Fund inside Treasury for critical and emerging technology investments.
• Requires Treasury, Defense, and Commerce coordination on national-security and economic-security technology priorities, with biotechnology as a priority.
• Authorizes seed-to-mid-stage equity investments averaging $1,000,000 to $10,000,000 in U.S.-headquartered technology companies.
• Creates an advisory board to design roadmap, operating procedures, investment standards, disclosure rules, and portfolio support.
• Creates a five-member supervisory board that oversees the Fund and approves investments by quorum and vote rules.
• Requires an open competition and 180-day selection of an independent managing entity.
• Authorizes up to 25 special Treasury personnel and annual reports to Congress.
• Exempts Fund actions from Paperwork Reduction Act and Administrative Procedure Act requirements.
• Authorizes $975,500,000 for FY2025, including $300,000,000 for biotechnology, plus long-term operating funds and conditional biotechnology replenishment.