On December 11, the House passed H.R. 3383, The INVEST Act, a bipartisan bill to expand investment options, empower entrepreneurs and small businesses, and provide Americans with the opportunity to more freely invest.

The vote was 302-123, with all Republicans supporting and the 123 nays coming from Democrats. Eighty-seven Democrats supported the bill, although the Financial Services Committee Ranking Member Maxine Waters (D-CA) and other members of the Democratic Leadership opposed it. The INVEST Act, which NAIFA strongly supports, is a package of 22 bills aimed at advancing capital formation and boosting investment. Within the Financial Services Committee bill package, NAIFA primarily advocated for four of the bills included. A summary of those bills’ provisions can be found below:

Key Provisions for the Retirement Fairness for Charities and Educational Institutions Act of 2025 (HR 1013):

• Unregistered Separate Accounts: Amends the securities law to authorize annuity options through collective investment trusts (CITs) and insurance company separate accounts, broadening choices for nonprofit employees (like teachers, hospital staff) who save for retirement through 403(b) plans. The necessary tax law changes were already enacted in SECURE 2.0 in 2022.
• 403(b) Plan Parity: Aims to give 403(b) plans access to the same lower-cost investment vehicles, such as CITs, that the federal TSP and 401(k)s offer, including annuity-linked options for guaranteed income.
• Default Options: Removes security law barriers to including certain annuities as default investment options in retirement plans, providing a pathway to "pension-like" income through CITs and insurance company accounts.

Key Provisions of the Senior Security Act (HR 1469):

• SEC Task Force: Creates a Senior Investor Task Force within the Securities and Exchange Commission (SEC) to investigate challenges and report to Congress on trends in senior investor protection.
• Task Force duties: Identify senior investor challenges (including cognitive decline), coordinate SEC efforts, and report to Congress.
• GAO Study: Directs the Government Accountability Office (GAO) to study and report on the economic impact and consequences of elder financial exploitation.
• Advocacy: NAIFA actively supports this legislation and similar efforts to shield seniors from fraud, viewing it as a core part of financial professionals' ethical duty.
• Focus on Prevention: NAIFA emphasizes protecting Main Street consumers, recognizing that investment fraud is a significant threat, and members are committed to this cause.

Key Provisions of the Fair Investment Opportunities for Professional Experts Act (HR 3394):

• Updating Outdated Rules: Current rules often exclude financially sophisticated individuals who lack high income or net worth but possess expertise, limiting their access to potentially high-growth private investments (like venture capital or private equity) and reducing capital available to small businesses. H.R. 3394 seeks to modernize accreditation to reflect actual financial acumen, aligning access with demonstrated capability rather than just wealth.
• Expand Accredited Investor Definition: The bill adds pathways to accreditation beyond income (>$200k/$300k joint) or net worth (>$1M), including:
  • Professional Knowledge: Individuals with verifiable education or job experience in finance/investments, determined by the SEC or self-regulatory organizations (SROs).
  • Professional Licenses/Registrations: Brokers or investment advisers in good standing with regulators.
• Promote Fairness: Aims to remove barriers for knowledgeable individuals excluded solely due to income/asset levels, fostering economic fairness.
• SEC Mandate: Requires the SEC to update regulations to match these changes and adjust thresholds for inflation periodically.

Key Provisions of the Fair Investment Opportunities for Professional Experts Act (HR3339):

Expanding accredited Investor eligibility

• Income and Net Worth Thresholds: These factors alone do not determine an individual’s sophistication or financial acumen.
• Additional pathways: Professional credentials, job experience, and examinations should be available for individuals to qualify for accredited investor status.
• Certification Exam: The SEC would establish an exam to prove financial understanding, allowing certified individuals to qualify as accredited investors.
• Broader Definition: It updates the outdated "accredited investor" definition, which currently favors the wealthy, to include those with demonstrated knowledge, opening private markets to more people.

NAIFA urged support for the INVEST Act. Among the primary benefits of the Act, the association said the bill is “a true equalizer that finally brings 403(b) plans in line with 401(k) and 457 plans. For the first time, teachers, nonprofit workers, and state employees will gain access to the same high-quality investment options their peers already enjoy. NAIFA members are eager to deliver these proven, client-favorite solutions to the dedicated public servants and mission-driven workers who’ve been left out for far too long.”

Prospects: The INVEST Act, as noted above, is generally bipartisan. It also enjoys support in the Senate. However, time constraints and competing priorities may delay action leading to enactment until at least next year.

NAIFA Staff Contacts: Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.