Bills · HR 1128
IN COMMITTEE· 119TH CONGRESS
House BillHR 1128Taxation
Endowment Accountability Act
INTRO FEB 7· LAST ACTION FEB 7
READING
1MIN
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it could significantly change the financial landscape for many private colleges and universities across the country. By increasing the tax on endowment investment income and broadening which schools must pay it, the bill could force institutions to re-evaluate how they manage and spend their endowment funds.
If it becomes law, these colleges might have less money available for student scholarships, faculty salaries, or new facilities, or they might be pressured to reduce tuition costs to justify their tax-exempt status. If it doesn't pass, the current tax structure for college endowments would remain, affecting fewer schools at a lower rate. This bill touches on issues of college affordability, the role of wealthy institutions, and how much money the government collects from non-profit organizations.
KEY PROVISIONS
3AI-extractedPROVISION 01
Increases the excise tax rate on private college and university investment income from 1.4% to 10%.
This provision would significantly increase the tax burden on affected institutions, diverting a larger portion of their investment earnings to the government.
PROVISION 02
Lowers the endowment asset-per-student threshold for private colleges to be subject to the tax from $500,000 to $200,000.
This expands the number of private colleges and universities that would be required to pay the excise tax, bringing many more institutions under its scope.
PROVISION 03
The changes made by this bill would apply to taxable years beginning after the date the Act becomes law.
This sets the timeframe for when the new tax rate and broader definition of applicable institutions would take effect.
SPONSORSHIP
1 + 0
R· New York
YRS IN OFFICE
3
BILLS LED
123
ACTION TIMELINE
2 EVENTSFEB 7
Introduced in House
FEB 7
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 1128
Congress119th
StatusIn Committee
IntroducedFeb 7, 2025
Last actionFeb 7, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED FEB 7, 2025
House BillHR 1128Taxation
Endowment Accountability Act
INTRODUCED FEB 7, 2025· LAST ACTION FEB 7, 2025
PASSAGE CHANCES
—%
READING
1 min
COSPONSORS
0
COMPLEXITY
Moderate
