Rep. Joyce Introduces Bill to Raise Taxes on Wealthy Private University Endowments
This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the legislative process and is considered active. There are no upcoming votes scheduled at this time.
This bill was introduced by members of one party and faces a long path through committees. Without support from both parties, it is unlikely to become law in its current form.
Students at wealthy private universities could benefit if their schools respond to the tax pressure by holding down tuition increases. The 20% penalty rate for schools that raise net prices above inflation creates a direct financial incentive for colleges to keep costs lower. However, the actual benefit depends on whether schools choose to absorb the tax or pass costs along in other ways.
“20 percent in the case of a net-price-increase institution”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
The article discusses a wave of Republican-led legislative efforts to tax university endowments, specifically mentioning Representative Dave Joyce’s Higher Education Accountability Tax (HEAT) Act as a key component of the broader push to penalize elite institutions for rising tuition costs.
While focusing on state-level legislation, the article notes that federal Republicans have proposed the Higher Education Accountability Tax Act in early 2025, which would raise the 1.4% excise tax on private university endowments to 10% and lower the asset-per-student threshold to $250,000.
Coverage of the HEAT Act's introduction, detailing how the bill would increase the tax on endowment profits to 10% and expand the number of taxed schools by lowering the threshold to $250,000 in assets per student to address the 'national student debt crisis.'
Document Type
Congressional Bill
Official Title
Higher Education Accountability Tax Act
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