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Improving Capital Allocation for Newcomers Act of 2025

12/3/2025, 11:56 AM

Summary of Bill HR 4431

The Improving Capital Allocation for Newcomers Act of 2025, designated as H.R. 4431 in the 119th Congress and introduced on July 16, 2025, aims to enhance capital allocation processes for new individuals or businesses entering the financial sector. The bill likely includes provisions to streamline access to capital, improve investment opportunities, and establish guidelines for efficient allocation strategies specifically tailored for newcomers. For further details and the full text of the bill, refer to the official PDF version available at https://www.congress.gov/119/bills/hr4431/BILLS-119hr4431ih.pdf.

Congressional Summary of HR 4431

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.

Current Status of Bill HR 4431

Bill HR 4431 is currently in the status of Introduced to Senate since December 2, 2025. Bill HR 4431 was introduced during Congress 119 and was introduced to the House on July 16, 2025.  Bill HR 4431's most recent activity was Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of December 2, 2025

Bipartisan Support of Bill HR 4431

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
1
Democrat Cosponsors
1
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 4431

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

- Banking and financial institutions regulation
- Business investment and capital
- Business records
- Securities

Alternate Title(s) of Bill HR 4431

Improving Capital Allocation for Newcomers Act of 2025
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.

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