# 119-hr-4431: Improving Capital Allocation for Newcomers Act of 2025

119-hr-4431, Improving Capital Allocation for Newcomers Act of 2025, is a 119th Congress bill sponsored by Rep. Timmons, William R. [R-SC-4] (R-SC); status passed_house; PRIA reads it as touching household money (as of 2026-07-19).

- Canonical: https://policyrisk.com/legislation/119-hr-4431
- As of: 2026-07-19
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-4431
- Congress: 119
- Title: Improving Capital Allocation for Newcomers Act of 2025
- Status: passed_house
- Introduced: 2025-07-16
- Sponsor: Rep. Timmons, William R. [R-SC-4] (R-SC)
- Cosponsors: 1
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-07-19

## Summary

**Raises the official thresholds that define qualifying venture capital funds and sets up a study to judge their effects.** The bill would increase who counts as a qualifying venture capital fund and require a five-year review that could trigger limited rule changes based on observed effects on where and who gets startup capital. - Venture capital funds and managers: The bill would raise the investor cap from 250 to 500 people and raise the dollar test from $10 million to $50 million. It also fixes the compliance measurement date to the date of enactment. - Startups and founders: The bill directs a study, to start five years after enactment, on how those threshold changes affect geographic capital flow, founders’ socio-economic diversity, veteran founders, industry sectors, size, and stage. - Regulators and rulemaking: The SEC, working with the Investor Advocate and the Advocate for Small Business Capital Formation, would gather data, publish a report, solicit 180 days of public comment, and could adjust thresholds within set bounds (250–750 people; $10 million–$100 million) if the study shows demonstrable increases in geographic or diversity outcomes.

## Cosponsors (1)

- Rep. Pettersen, Brittany [D-CO-7] (D-CO), 2025-07-21T00:00:00.000Z

## Provisions PRIA read

- Higher limits for venture capital funds: benefit, low. If enacted, more private funds could qualify as venture capital funds. The person limit would rise from 250 to 500. The dollar test would rise from $10 million to $50 million. The money test would be measured on the Act’s enactment date. The bill would keep the current inflation adjustment for that…
- Study and possible SEC threshold changes: mixed, low. If enacted, a study would start five years after enactment. The SEC’s small business and investor advocates would track where venture money goes and who founders are, including veterans. They must report to Congress and post the report online. Public comment on the report would run for 180 days. If…

## Related bills

- 119-hr-4669: FEMA Act of 2025
- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-137: TCJA Permanency Act
- 119-hr-9211: Jewish American Security Act

## Sources
- [119-hr-4431 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/4431)

## Related
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-137: TCJA Permanency Act](https://policyrisk.com/legislation/119-hr-137)
- [119-hr-9211: Jewish American Security Act](https://policyrisk.com/legislation/119-hr-9211)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-4431 (as of 2026-07-19).