Independence Investment Fund Act

Summary#

This bill creates the Independence Investment Fund inside the Department of the Treasury. The Fund will invest in early- to mid-stage companies that develop critical and emerging technologies that can strengthen national security or economic security. The Secretary of the Treasury sets the Fund’s strategy in consultation with the Defense and Commerce departments. Biotechnology is named a priority.

The Fund will make seed to mid-stage equity investments, aiming for an average investment between $1,000,000 and $10,000,000. Investments should be in companies headquartered in the United States, but the Fund may invest abroad or partner with foreign venture funds if those entities are not "foreign entities of concern." The Secretary will select an independent managing entity through an open competition to run the Fund. An advisory board will produce a roadmap and operating guidance and will report within 180 days. After the advisory board ends, a five-member supervisory board will provide ongoing oversight and approve investments.

The managing entity will use strategic venture capital methods, follow direction from the Secretary and supervisory board, provide monthly accounting and quarterly progress reports, and operate under transparency and conflict-of-interest policies. The Fund itself is not a federal agency. Some actions by the Secretary under the Act are exempt from the Paperwork Reduction Act and the Administrative Procedure Act. The Secretary must report yearly to the appropriate congressional committees on Fund operations.

What it means for you#

  • Companies developing critical technologies, especially biotechnology, may be eligible for seed to mid-stage equity investments and non-financial support such as mentorship or regulatory help.
  • Companies that had foreign investment blocked or reversed by the Committee on Foreign Investment in the United States may be considered for Fund support.
  • Portfolio companies may face disclosure and reporting requirements, including reporting proposed sales or mergers with foreign companies to CFIUS as described in the Fund’s operating guidance.
  • The Fund will be managed by an independent managing entity chosen through a competitive process and overseen by a supervisory board and the Secretary.
  • The Secretary may hire up to 25 staff with pay set outside normal federal rules, subject to a statutory cap.

Expenses#

  • Authorized to be appropriated $975,500,000 for fiscal year 2025, including $300,000,000 specifically for biotechnology investments, to remain available until expended.
  • Administrative and operating costs authorized: $2,000,000 for fiscal year 2025 and $22,000,000 for each fiscal year 2026 through 2040.
  • Conditional authorization: for fiscal years 2035–2040, if the Fund’s biotechnology cash balance is under $80,000,000 on September 30 of any year, up to $500,000,000 may be appropriated for the following year (of which $150,000,000 must be for biotechnology). No more than $500,000,000 may be authorized under this condition during that period.

Proponents' View#

Supporters would say the Fund helps direct capital to U.S. companies working on critical and emerging technologies, signals priorities to private investors, offers an alternative to foreign investment for sensitive companies, aims to generate returns so the Fund can sustain itself, and provides the government with market awareness about new products and capabilities. The bill names biotechnology as a priority and sets structures for independent management and oversight.

Opponents' View#

No publicly available information.