U.S. House Passes Bipartisan INVEST Act

On December 11, the U.S. House of Representatives passed the “Incentivizing New Ventures and Economic Strength Through Capital Formation” (INVEST) Act (H.R. 3383) with a bipartisan vote 302-123. The bill, a package of various House Financial Services Committee (HFSC) bills, would address issues related to capital formation, investor access to certain investments, streamline certain disclosure requirements, and increase protections for senior investors, among other areas. The bills in the package include:

 

  • The Increasing Investor Opportunities Act: Expands closed-end investment companies’ ability to invest in private funds.
  • Retirement Fairness for Charities and Education Institutions Act of 2025: Amends securities laws to expand investment options for 403(b) retirement plans to include Collective Investment Trusts (CITs), aligning them more closely with 401(k) treatment.
  • Access to Small Business Investor Capital Act: Revises how investment companies disclose acquired fund fees and expenses.
  • Improving Disclosure for Investors Act of 2025: Directs the SEC to modernize its rules to make eDelivery the default for investor documents.

 

In a press release, Committee Chairman French Hill stated, “I applaud the House’s passage of the INVEST Act, which will keep our economy the envy of the world and secure a brighter future for generations to come.” The Committee also released a comprehensive list of industry support for the measure which included several large industry trade associations. While the bill passed with bipartisan support, it lacked the backing of HFSC Ranking Member Maxine Waters (D-CA). Next steps require the U.S. Senate to take up the bill, which may take time as the Senate Banking Committee remains focused on passing a comprehensive cryptocurrency framework as well as other issues.

 

Click here to view the legislative text of the INVEST Act.

Click here to view a section-by-section summary of the INVEST Act.

Click here to view the House Financial Services majority press release.

Click here to view a release of industry perspectives on the passage of the INVEST Act.