No New Burma Funds Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4423) to continue the pause on disbursements and new financing commitments to the Government of Burma, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 4423, the No New Burma Funds Act. I thank the gentlewoman from Georgia (Ms. Williams) for sponsoring this bipartisan legislation.

I am pleased to note that this bill passed the Financial Services Committee unanimously by a vote of 54-0 in July of this year. That kind of agreement underscores the seriousness of the threat posed by Burma's military regime and the broad consensus that the United States must respond firmly.

The No New Burma Funds Act ensures that the United States will oppose any new World Bank financing that could benefit Burma's illegitimate military junta and supports international efforts to restore democratic governance.

Since the military overthrew the elected Burma Government in 2021, Congress has fought to hold Burma's military coup accountable and support the Burmese people in their struggle for freedom to restore their rightful voice in their own government.

Yet despite widespread global condemnation, the acting Government of Burma continues to entrench its power, exploit state resources, and suppress democratic aspirations of its citizens, all while seeking access to new streams of international financing.

The No New Burma Funds Act responds directly to this challenge by ensuring that the United States continues to use its full voice and vote at the World Bank to maintain a strict pause on disbursements in new financing commitments to the current government in control of Burma.

Supporting democratic movements, defending human rights, and advancing stability in Southeast Asia are in our American interest. When international institutions inadvertently enable authoritarian regimes through new financing, our credibility suffers, and in this case the Burmese people would pay the price.

By reaffirming and strengthening this pause, H.R. 4423 provides a responsible and targeted approach that prevents international funds from benefiting the current government and maintains the pressure applied following the 2021 coup.

This is a bipartisan, commonsense measure that upholds human rights, reinforces international accountability, and supports the long-term prospects of peace and democracy in Burma. I thank the bill's sponsor for her work on this legislation and commitment to standing with the people of Burma.

I urge my colleagues on both sides of the aisle to support this bill and help send a clear message that the United States will not allow international financing that empowers brutal dictatorship or tyranny in Burma. I reserve the balance of my time.

Mr. Speaker, I include in the Record the CBO estimate for this bill.

Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Mrs. Kim).

Mr. Speaker, for the reasons I explained earlier, I urge all of our colleagues to support this bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I also rise in support of H.R. 4429, the Developing and Empowering our Aspiring Leaders Act, or DEAL Act, which is a critical bill to support innovation, entrepreneurship, and capital formation.

The venture capital industry provides vital funding for early-stage startups at points in their life cycle when they are generally deemed to be too risky for traditional bank financing or for raising money on the public market. This basically means that if we are going to have a growing and innovative economy, then we have to have a healthy venture capital sector.

Historically, venture capital earns investor returns and frees up more capital to recycle in other companies by selling their mature portfolio companies to strategic investors or taking them public on public markets.

For a variety of reasons, including public company reporting obligations, economic uncertainty, and the rise of private equity, U.S. companies today are staying private much longer, which has reduced the opportunities for venture capital firms to recycle their investment dollars.

Some venture capital firms have sought to create new liquidity options through secondary acquisitions and investments in other VC funds. This is what Congresswoman Wagner was referring to, but that option right now is constrained by provisions in the Dodd-Frank Act of 2010 that limit venture capital funds' ability to invest in these so- called fund of funds to only 20 percent of their commitments.

That rule was very well-intentioned when passed, and the intent was to ensure that VC firms remained focused on direct investments in early-stage startups. However, it was crafted for a very different financial market than we have today.

I would also note that that constraint is irrelevant to the larger, more well-known VC funds who have the resources to shoulder the compliance burdens associated with registering with the SEC as registered investment advisers. They can already do this, but they are the big ones. They are the ones based in San Francisco and New York. That option isn't available for these emerging regional fund managers located in the middle of the country. Many of those funds increasingly depend on that fund-of-funds model.

What the DEAL Act does is just provides greater flexibility to those smaller VC funds while still ensuring that investors are protected and that fund managers continue to prioritize direct funding in small businesses. It does this by revising the existing rules to raise the cap from 20 percent in fund of funds up to 49 percent but still requiring that the majority of their investments are directly in portfolio companies.

In other words, the DEAL Act supports growth in the startup economy and ensures that capital reaches the communities and innovators who need it most.

I thank my fellow Midwesterner and friend, Congresswoman Wagner, for her leadership on this. I am proud to lead this important legislation, and I urge all my colleagues to support it.

Mr. Speaker, I thank my friend from Ohio for yielding.

Mr. Speaker, I am proud to sponsor H.R. 4429, the Developing and Empowering our Aspiring Leaders, or DEAL, Act.

This bill, which passed with almost unanimous support out of the Financial Services Committee, seeks to ensure the United States remains the most entrepreneurial country in the world, where the next great companies are founded and funded.

It is often said that small businesses are the engine of the American economy, and that is an absolute truth. Small businesses make up 99 percent of U.S. employers, and they are the driving force behind the creation of a majority of new jobs.

The entrepreneurs leading these companies are building something new, taking real risks, and driving growth in communities across the Nation, but too often, they can't get a fair shot at investment.

Right now, our capital markets suffer from an extreme geographic imbalance. The data is stark. Nearly 70 percent of venture capital flows to three States, Mr. Speaker: California, New York, and Massachusetts.

This leaves entire regions of the country struggling to access funding. It leaves communities in the Midwest and the South without the capital they need to build and scale businesses. Access to capital is not just a coastal issue. It is a national economic necessity.

This capital divide is why the DEAL Act is so critically important. This bill is a targeted, forward-looking effort to modernize outdated rules and channel investment to where it is needed most.

The DEAL Act fundamentally strengthens the ability of capital to reach more founders and more communities. It achieves this by allowing larger venture funds to invest directly in smaller, regional funds, a fund-of-funds investment.

This mechanism is a game changer, Mr. Speaker. It means more funding for startups, more opportunities for businesses that might otherwise be overlooked, and more innovation happening everywhere, not just in a handful of elite ZIP Codes.

Newer, regional venture funds are often best positioned to back the entrepreneurs who are building businesses on Main Street. The DEAL Act ensures that these funds can expand that important work, giving them the flexibility to partner with larger institutions to reach a wider base of early-stage companies.

H.R. 4429 ensures our policies are helping capital move efficiently and effectively, empowering those taking risks to build something new, and helping good ideas grow into great companies.

I thank Chairman Hill for his support, and also I thank Congressman Casten for joining me and co-leading this commonsense and bipartisan piece of legislation.

Mr. Speaker, I thank my colleague Mr. Davidson for his broad work in the capital market space and for leading us here on the floor today.

I rise to urge my colleagues to support the Expanding WKSI Eligibility Act. I thank my co-leads, Mr. Fields, as well as Chairman Hill and Ranking Member Waters, for their support.

We have far too many regulations in the United States, and this bill is about rightsizing our regulations in support of investments and jobs.

This commonsense bill will help more well-run companies responsibly raise money in the public markets. It rightsizes regulatory burdens and frees up more resources for companies to invest in American jobs and American innovation.

The well-known seasoned issuer--also known as WKSI--status was first implemented around 20 years ago. It allows qualified public companies in good standing to use automatic shelf registration. This reduces the cost and complexity of a public offering and allows companies to be more responsive to market conditions.

The WKSI construct has a track record of success in expanding access to public markets while protecting investors.

According to Joel Trotter, one of the authors of the JOBS Act, ``Decades of successful experience show that the well-known seasoned issuer category is long overdue for expansion.''

I couldn't agree more, and this bill does exactly that. It lowers the size threshold for WKSI qualification while maintaining all the existing good governance requirements.

In other words, more small and midsized American public companies will be able to benefit from the privileges that already exist for larger businesses with similar compliance records.

The Expanding WKSI Eligibility Act also includes a helpful reporting requirement for the Securities and Exchange Commission. This report will provide Congress and the public with a better understanding of how many previously ineligible companies are trying to regain their WKSI status. Doing so will gain the insight needed to make future legislative adjustments.

The Expanding WKSI Eligibility Act is a tailored, regulatory improvement

that will support small and midsized businesses, job creators, and investments.

Mr. Speaker, I ask my colleagues to support this legislation.

Mr. Speaker, I rise today in support of H.R. 4423, the bipartisan No New Burma Funds Act.

This bill, which I introduced with my colleague Young Kim, would mandate that the United States use its voice and vote to continue the World Bank's pause on disbursements and new financing commitments to the Government of Burma. This pause was initiated after a military coup overthrew the democratically elected Government of Burma in 2021.

Mr. Speaker, 4 years ago, the democratically elected leaders in Burma's ruling party, the National League for Democracy, were overthrown by the Tatmadaw, Burma's military. Since the military regime's coup, we have seen families displaced. We have seen citizens detained without access to income, education, or healthcare. There has been brutal violence against the Burmese civilian population.

I center my work on my constituents and fighting for those most marginalized. Mr. Speaker, while I hope we are going to have a robust conversation around making sure that everyone back home in my district is housed with affordable housing and lowering costs in this country, today, this bill is still central to my constituents. In my district alone, DeKalb County is home to over 2,000 Burmese refugees.

In another life, prior to my congressional service, I was a public school teacher. I had a student who was a Burmese refugee. Htet-Yet and his family's story is empowering and a stark reminder that not only do we have an obligation to help those no matter their ZIP Code, but we have a duty to help those no matter where they are around the globe.

This legislation gives our country yet another tool to put financial pressure on the Burmese Government. This bill will ensure that the U.S. executive director at the World Bank pushes the institution to continue its pause on the disbursement of funds and new financing commitments to the government, incentivizing the Burmese Government to give power back to the most important piece of any thriving free country: the people.

I thank Congresswoman Young Kim for co-leading this important legislation with me. I also thank Chairman Hill and Ranking Member Waters for their support of this priority. I urge all of my colleagues to support this bill.