ICI Commends House Passage of the INVEST Act

Washington, DC; December 11, 2025—The Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement today after the House of Representatives passed H.R. 3383, the Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025 (INVEST Act).

The bipartisan capital formation package includes four bills ICI strongly advocated for that would create new and meaningful opportunities for investors to access capital markets.

“Capital formation is the engine of American economic growth. The INVEST Act makes several important improvements that will help millions of American investors succeed. When we broaden investment opportunities, make it easier for businesses to raise capital, make available more retirement plan options, and streamline disclosure practices, investors and markets benefit. The US capital markets are the deepest and most liquid in the world, and legislation such as this will help preserve that significant competitive advantage. ICI applauds the work of Chairman Hill, Capital Markets Chair Wagner, and all the members of the Committee for their work to advance this package.”

Background:

ICI strongly advocated for the following four bills:

1. The Increasing Investor Opportunities Act sponsored by Reps. Ann Wagner (MO-02) and Gregory Meeks (NY-05): Will allow a closed-end fund to invest its assets more freely in securities issued by private funds and removes the loophole that allows activist investors to take over closed-end funds and force them into liquidity events or radically change their investment strategy.

2. The Retirement Fairness for Charities and Educational Institutions Act sponsored by Reps. Frank Lucas (OK-03), Bill Foster (IL-11) and Josh Gottheimer (NJ-05): Will allow 403(b) plans, often used by Americans working in education, charitable organizations, and health care to invest in Collective Investment Trusts (CITs). CITs are highly regulated, pooled investment funds intended for retirement plans and often provide cost savings over other investment structures. CITs are widely available in 401(k)s and have even been used in the Thrift Savings Plan—the retirement plan for Congress and federal employees. 

3. The Improving Disclosure for Investors Act sponsored by Reps. Bill Huizenga (MI-04), Jake Auchincloss (MA-04), Wiley Nickel (NC-13), and Bryan Steil (WI-01): Will bring investment disclosures into the 21st century by allowing electronic delivery to become the default mechanism to deliver certain regulatory documents to investors. Investors can still opt to receive paper documents if they want, preserving choice while modernizing the system.

4. The Access to Small Business Investor Capital Act sponsored by Reps. Bill Huizenga (MI-04), Brad Sherman (CA-32), Andrew Garbarino (NY-02), and Janelle Bynum (OR-05): Will address a 2006 Securities and Exchange Commission (SEC) rule that led to misleading disclosure concerning business development company (BDC) fees and expenses in investor disclosures from acquiring funds. The unintended consequences of this rule ended up discouraging investment in BDCs. However, this legislation will make it easier for BDCs to grow, and in turn, further support mid-sized and small businesses.