The U.S. House of Representatives approved the Incentivizing New Ventures and Economic Strength Through Capital Formation (INVEST) Act (H.R.3383) by a vote of 302 to 123 on December 11, 2025. The INVEST Act includes a variety of provisions aimed at modernizing capital markets by easing rules for small businesses and start-ups to raise money.
Importantly, the legislation includes the Retirement Fairness for Charities and Educational Institutions Act (H.R.1013). This would allow employees of hospitals, universities and other nonprofit organizations participating in 403(b) retirement plans to have access to collective investment trusts (CITs). CITs are well suited for use in retirement plans and typically result in significant cost savings for plan participants relative to mutual funds. They have been successfully used in 401(k) and 457(b) plans for decades.
The SECURE 2.0 Act of 2022 amended the Internal Revenue Code to allow 403(b) CITs but did not include needed changes to securities law. The Retirement Fairness for Charities and Educational Institutions Act would amend securities law to allow implementation of 403(b) CITs.
The focus now shifts to the Senate, where the Retirement Fairness for Charities and Educational Institutions Act (S.424) has bipartisan support but has not yet received Senate discussion. The outlook for Senate consideration — and thus the outlook for final enactment — is not clear.
