Improving Capital Allocation for Newcomers Act of 2025
Introduced
Moved
Reached a final decision
Introduced 2025-07-16
Derived from the official record below.
Officially: “Improving Capital Allocation for Newcomers Act of 2025” Read the full text
Finance and Financial Sector
What it does
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
Summary by the Congressional Research Service, from the official record. Plain-language version below. Not legal advice.
Read it in plain language
AI plain language2 sections
Written by AI from the complete official bill text and independently fact-checked against it. Not legal advice.
1Short title
This section would allow the Act to be called the "Improving Capital Allocation for Newcomers Act of 2025."
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Official text, verbatim from the record
1. Short title This Act may be cited as the Improving Capital Allocation for Newcomers Act of 2025 .
2Qualifying venture capital funds
This section would make two number-for-number edits to section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(1)), the provision that defines a qualifying venture capital fund: replacing "250 persons" with "2,000 persons" in the text before subparagraph (A), and replacing "$10,000,000" with "$150,000,000" in subparagraph (C)(i). Stating what these changed figures actually govern (who counts toward the person limit, and what the dollar figure caps) requires the current text of section 3(c)(1), which is not included in the bill text provided.
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Official text, verbatim from the record
2. Qualifying venture capital funds Section 3(c)(1) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c)(1) ) is amended— (1) in the matter preceding subparagraph (A), by striking 250 persons and inserting 2,000 persons ; and (2) in subparagraph (C)(i), by striking $10,000,000 and inserting $150,000,000 .
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Where it is
Introduced · 2025-07-16
In the House.
Passed the House · 2025-12-01
Senate floor vote · next
Official documents
The on-site text is shown verbatim from the GovInfo publication, captured 2026-07-23. The same version at GovInfo.
The numbers
29%
of bills that passed one chamber became law in the 118th Congress, 2023 to 2024 (n=939)
2
sponsors, out of 218 needed to pass
Who is lobbying on this
CHAMBER OF COMMERCE OF THE U.S.A.via CHAMBER OF COMMERCE OF THE U.S.A.
5 filingsESHARES, INC. D/B/A CARTA, INC.via ESHARES, INC. D/B/A CARTA, INC.
4 filingsAMERICANS FOR FINANCIAL REFORMvia AMERICANS FOR FINANCIAL REFORM
2 filingsFrom 11 filings in federal lobbying disclosures (LDA), via lda.gov, naming this bill (2025 to 2026). Filings are self-reported by lobbying firms and show who is paid to influence this bill. They do not say which side, or whether it worked.
Every fact on this page links to its source, starting with the official bill record. Last action: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (2025-12-02).