The post These Colleges Are At Risk As Congress Takes Aim At Endowments appeared on BitcoinEthereumNews.com.

It’s not just Harvard that will pay. As Republicans hunt for revenues, the tax on private college endowments could be raised and broadened. We found 127 schools that might be vulnerable. Aspart of his battle with Harvard University, President Donald Trump has suggested that the Internal Revenue Service could yank the school’s tax exemption—a dramatic move that lawyers say likely won’t hold up in court. But the broader, more immediate tax threat to America’s wealthy private universities comes from Congressional Republicans eager to meld their dislike for “woke” colleges and the way they’ve handled antisemitism and diversity issues, with their hunt for revenues. They need those revenues to partially offset the multitrillion dollar cost of extending Trump’s 2017 tax cuts for individuals (due to expire at the end of this year) and of delivering on new tax goodies he has promised. The GOP has a smorgasbord of ideas for hoovering up revenue from colleges, students and students’ parents—everything from tightening rules for student loans and loan repayments to limiting college tax credits to taxing the free tuition many graduate students get. One of the most likely to be chosen from that menu: dramatically raising (and perhaps extending to more schools) the current 1.4% tax on the net investment income of college endowments. That tax was first adopted in 2017 to help pay for Trump’s signature tax cuts. Back then, the GOP-controlled Congress used the same “reconciliation” process it’s using now—one which enables Republicans to target colleges in a massive tax and budget package that doesn’t need any votes from Democrats. The current endowment tax only applies to private colleges with more than 500 paying students and an endowment equal to $500,000 or more per student. According to Internal Revenue Service data, 56 schools paid a total of $381 million in…

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Filed under: News - @ April 28, 2025 11:22 am