HR 4431
Passed a chamber
Changes the definition of qualifying venture capital funds under the Investment Company Act of 1940, raising the investor cap from 250 to 500 persons and the dollar threshold from $10 million to $50 million.
Official title: Improving Capital Allocation for Newcomers Act of 2025
Timeline each lane is a chamber; dates pull from congress.gov actions
House
Introduced
16-JUL-2025
Referred
16-JUL-2025
Approved by committee
22-JUL-2025
Reported
08-SEP-2025
On the calendar
08-SEP-2025
Passed
01-DEC-2025
Senate
Received
02-DEC-2025
- Raises the investor limit in Section 3(c)(1) from 250 to 500 persons.
- Raises the dollar figure in Section 3(c)(1)(C)(i) from $10 million to $50 million and sets its measurement date to the bill's enactment date.
- Requires the Advocate for Small Business Capital Formation, with the Investor Advocate, to study the effects on geographic distribution, founder demographics, and veteran founders five years after enactment, then report to Congress.
- Allows the SEC to adjust the thresholds by rule, within limits of 250 to 750 persons and $10 million to $100 million, only if the report finds a demonstrable effect.
Covers an older version. The newest CRS summary describes the bill as of "Introduced in House" (16-JUL-2025); the text has changed since (Engrossed in House, 01-DEC-2025).
CRS is the Library of Congress's nonpartisan research office. Read it on congress.govFinance and Financial Sector
■ 1 D
1 Democrat