Bills · HR 4462
IN COMMITTEE· 119TH CONGRESS
House BillHR 4462Taxation
Protecting Endowments from Our Adversaries Act
INTRO JUL 16· LAST ACTION JUL 16
READING
6MIN
COSPONSORS
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READER REACTIONS0 TOTAL
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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-writtenThis bill matters because it aims to align the investment practices of wealthy private universities with U.S. national security and foreign policy interests. If it becomes law, it would create a strong financial disincentive for colleges to invest in companies or organizations identified as posing risks by the government. Voters might care about ensuring that large, tax-exempt educational institutions do not inadvertently or directly support entities that could undermine U.S. security or economic interests.
Without this bill, private universities would continue to have full discretion over their endowment investments, including those in entities on government watchlists, without incurring a specific federal tax penalty for such investments. The bill seeks to close what some might view as a loophole or to add an additional layer of financial regulation to encourage what it defines as more responsible investment practices.
KEY PROVISIONS
5AI-extractedPROVISION 01
Imposes a 50% excise tax on the fair market value of 'listed investments' when a specified educational institution acquires them.
This creates a significant upfront financial penalty, discouraging private universities with large endowments from initially buying stakes in identified risky entities.
PROVISION 02
Imposes a 100% excise tax on the net income (gains minus losses) from '1-year listed investments' held by specified educational institutions.
This provision aims to remove any profit incentive for holding identified risky investments over time, making such holdings financially unsustainable.
PROVISION 03
Defines 'listed investment' as any specified interest (stock, debt, derivatives) in an entity found on specific U.S. government lists (e.g., Entity List, Military End User List, FCC Covered List).
This clarifies which investments are subject to the new taxes by referencing existing government watchlists related to national security and trade concerns.
PROVISION 04
Applies these taxes only to private colleges and universities with endowments (non-exempt purpose assets) exceeding $1 billion.
This targets only the wealthiest private educational institutions, avoiding impact on smaller or state-funded schools.
PROVISION 05
Requires the Treasury Secretary to create a consolidated list of 'listed persons' within 60 days of the bill's enactment and establish procedures for pooled funds to be certified as not holding listed investments.
This ensures transparency for institutions to identify which investments are restricted and helps pooled funds avoid triggering the tax.
SPONSORSHIP
1 + 0
R· North Carolina
YRS IN OFFICE
7
BILLS LED
40
ACTION TIMELINE
2 EVENTSJUL 16
Introduced in House
JUL 16
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 4462
Congress119th
StatusIn Committee
IntroducedJul 16, 2025
Last actionJul 16, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JUL 16, 2025
House BillHR 4462Taxation
Protecting Endowments from Our Adversaries Act
INTRODUCED JUL 16, 2025· LAST ACTION JUL 16, 2025
PASSAGE CHANCES
—%
READING
6 min
COSPONSORS
0
COMPLEXITY
Moderate
