S.Amdt. 6166

SA 6166. Ms. WARREN submitted an amendment intended to be proposed by
her to the bill S. 4784, to authorize appropriations for fiscal year
2027 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

After section 1051, insert the following:

SEC. 1051A. PROHIBITION ON EQUITY INVESTMENTS FOR ENTITIES IN
WHICH CERTAIN SENIOR GOVERNMENT OFFICIALS HOLD
A SIGNIFICANT INTEREST.

Subsection (h) of section 149 of title 10, United States
Code, as amended by section 1051, is further amended--
(1) by redesignating paragraph (9) as paragraph (10); and
(2) by inserting after paragraph (8) the following new
paragraph (9):
``(9) Prohibition on equity investments for certain
entities.--
``(A) In general.--Notwithstanding any other provision of
this section or any other provision of law, a covered entity
is not eligible for an equity investment under this
subsection.
``(B) Definitions.--In this paragraph:
``(i) Covered entity.--The term `covered entity' means an
entity in which a covered individual directly or indirectly
holds a significant interest. For the purpose of determining
whether an entity is a covered entity, if securities of the
entity are owned, controlled, or held by 2 or more
individuals who are related as described in clause (ii), such
securities shall be aggregated.
``(ii) Covered individual.--The term `covered individual'
means--

``(I) the President, the Vice President, or any other
individual designated by the President as having Cabinet-
level status;
``(II) the spouse, child, son-in-law, or daughter-in-law of
an individual described in subclause (I); or
``(III) any officer or employee of the executive branch,
including a special Government employee (as defined in
section 202 of title 18), who participates in the
consideration, negotiation, approval, or administration of
equity investments under this subsection.

``(iii) Equity interest.--The term `equity interest'
means--

``(I) a share in an entity (including a partnership),
without regard to whether the share is--

``(aa) transferable; or
``(bb) classified as stock or anything similar;

``(II) a capital or profit interest in a limited liability
company or partnership;
``(III) a capital or profit interest in a venture capital
fund, private equity fund, fund of funds, or other pooled
investment fund; or
``(IV) a warrant or right (other than a right to convert)
to purchase, sell, or subscribe to a share or interest
described in subclause (I), (II), or (III).

``(iv) De minimis interest.--The term `de minimis interest'
means an equity interest in an entity that--

``(I) does not exceed $15,000;
``(II) is purchased and owned only through an open-end
company that is a diversified company (as those terms are
defined in section 5 of the Investment Company Act of 1940
(15 U.S.C. 80a-5)) and that--

``(aa) is registered with the Securities and Exchange
Commission; and
``(bb) does not concentrate its holdings in any sector or
through any other investment vehicle that is exempt from
section 208 of title 18 as of the date of the enactment of
the National Defense Authorization Act for Fiscal Year 2027;
or

``(III) is purchased and owned as part of a widely
diversified employee benefit plan or a pension established
and maintained by a Federal, State, or local government.

``(v) Significant interest.--The term `significant
interest', with respect to an entity, means owning,
controlling, or holding any equity interest, other than a de
minimis interest, in the entity.''.
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