H.R. 6412

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6412 Introduced in House (IH)]

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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.
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