H.R. 4431 Passed the House Finance and Financial Sector

Improving Capital Allocation for Newcomers Act of 2025

To amend the Investment Company Act of 1940 with respect to the definition of qualifying venture capital funds, and for other purposes.

  1. Introduced
  2. Committee
  3. Passed House
  4. Passed Senate
  5. To President
  6. Became law
Sponsor Rep. Timmons, William R. [R-SC-4] Introduced July 16, 2025 Cosponsors 1 (1 D) Latest action December 2, 2025

Summary

Improving Capital Allocation for Newcomers Act of 2025
This bill expands qualification requirements for venture capital funds to include investment firms with more owners and capital contributions. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Currently, an investment firm qualifies as a venture capital fund if, among other requirements (1) the fund's securities are owned by 250 persons or less, and (2) the fund has $10 million or less in aggregate capital contributions and uncalled committed capital. The bill increases these amounts to 2,000 persons and $150 million, respectively.

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Dec 2, 2025 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  2. Dec 1, 2025 Motion to reconsider laid on the table Agreed to without objection.
  3. Dec 1, 2025 On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4950-4951)
  4. Dec 1, 2025 DEBATE - The House proceeded with forty minutes of debate on H.R. 4431.
  5. Dec 1, 2025 Considered under suspension of the rules. (consideration: CR H4950-4952)
  6. Dec 1, 2025 Mr. Davidson moved to suspend the rules and pass the bill, as amended.
  7. Sep 8, 2025 Placed on the Union Calendar, Calendar No. 205.
  8. Sep 8, 2025 Reported (Amended) by the Committee on Financial Services. H. Rept. 119-248.
  9. Jul 22, 2025 Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 2.
  10. Jul 22, 2025 Committee Consideration and Mark-up Session Held
  11. Jul 16, 2025 Referred to the House Committee on Financial Services.
  12. Jul 16, 2025 Introduced in House

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