Congress blocks Pentagon office from acquiring equity in private firms
Lawmakers declined to approve legislation that would let the Pentagon’s Office of Strategic Capital take equity stakes in private companies.
A source familiar with the process said Congress rejected proposals that would grant the Office of Strategic Capital legal authority to seek equity investments. The office, created in 2022 to back loans for critical-technology firms, drew attention after the Trump administration used it to acquire a share in Venezuela’s second-largest oil company. Lawmakers have asked the administration for a briefing on that deal amid bipartisan skepticism. The Pentagon and the White House have not responded to comment requests.
Why it matters
It limits a new defense-funding tool from directly investing in private firms, affecting oversight of government-linked finance.
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