House Republicans Put Ivy League’s Massive Endowments On Chopping Block

House Republicans are proposing to dramatically raise taxes on elite universities’ massive endowment profits as part of President Donald Trump’s “one big, beautiful bill.”

The House Ways and Means Committee’s tax bill released Monday afternoon would target universities’ endowments through a tiered-approach based on institutions’ endowment per student ratio. Raising the tax on certain universities’ endowment investment returns is expected to produce tens of billions of dollars in revenue over a ten-year period, which GOP lawmakers are hoping will help offset the cost of the president’s tax priorities.

An endowment is a compilation of donated assets invested by a university to permanently fund its mission. Congressional Republicans are seeking to impose a tax hike on universities’ endowment profits in part due to campuses failing to crack down on antisemitism and inculcating left-wing ideology among students.

Colleges with endowments valued between $500,000 and $750,000 per student would pay the current 1.4% tax on annual investment income, according to the committee bill text. Endowments valued under $1.25 million per student would be taxed at a 7% rate and those with endowments between $1.25 million to $2 million per student would pay a 14% rate.

Universities with endowments valued at more than $2 million per student would pay a 21% tax on annual endowment profits. Republican Texas Rep. Troy Nehls’ Endowment Tax Fairness Act floated