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Endowment Tax Fairness Act
2/11/2025, 12:53 PM
Summary of Bill HR 446
The purpose of this bill is to address concerns about the growing wealth and endowments of private colleges and universities, which some believe are not being used effectively to benefit students or the public. By increasing the tax rate on investment income, supporters of the bill hope to encourage these institutions to spend more of their resources on educational programs, scholarships, and other initiatives that directly benefit students and the community.
Opponents of the bill argue that it unfairly targets private colleges and universities and could have unintended consequences, such as reducing the amount of financial aid available to students or limiting the ability of these institutions to invest in important research and infrastructure projects. Overall, Bill 119 HR 446 is a controversial piece of legislation that seeks to address issues related to the financial practices of private colleges and universities. It will be important for lawmakers to carefully consider the potential impacts of this bill on higher education institutions and students before making a decision on its passage.
Congressional Summary of HR 446
Endowment Tax Fairness Act
This bill increases the excise tax on the net investment income of certain private university and college endowments.
Under current law, certain private universities and colleges with 500 or more tuition-paying students (of which more than 50% are located in the United States) and endowments that are at least $500,000 per student pay an excise tax in the amount of 1.4% on the net investment income from such endowments.
The bill increases the amount of the excise tax to 21% of the net investment income from such university and college endowments.
Further, the bill provides that amounts collected from the increase to the excise tax on the net investment income from such university and college endowments are (1) to be deposited into the general fund of the Treasury; and (2) used to reduce the national deficit and, subsequently, the national debt.
Read the Full Bill
Current Status of Bill HR 446
Bipartisan Support of Bill HR 446
Total Number of Sponsors
2Democrat Sponsors
0Republican Sponsors
2Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
0Republican Cosponsors
1Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 446
Primary Policy Focus
Alternate Title(s) of Bill HR 446
Comments
Riley Bullard
10 months ago
This bill is just ridiculous. It's not fair at all.
Ariella McMillan
10 months ago
I wonder how this will impact me and my community. It seems like a step in the right direction, but I'm curious to see how it plays out in the long run.
