Skip to content
Govbase
Govbase
Congress·In Committee·H.R. 1128

Endowment Accountability Act

Private University Endowment Tax Increase

about 1 year ago·View on Congress.gov·Read full text

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 or hearings scheduled at this time.

Passage Likelihood

30%Unlikely

While this bill aligns with some party priorities to target elite institutions, it faces a very difficult path in the Senate and strong opposition from the higher education lobby.

  • ·Strong opposition from university lobbyists
  • ·Partisan divide on tax policy
  • ·Currently sitting in the House Ways and Means Committee

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill would significantly increase the tax that wealthy private colleges pay on their investment earnings. Currently, these schools pay a 1.4 percent tax on the money they make from their endowments, but this plan would raise that rate to 10 percent.
  • The plan also changes which schools have to pay the tax. Right now, only schools with at least 500,000 dollars in assets per student are taxed. This bill would lower that limit to 200,000 dollars per student, which means many more private colleges would be affected.
  • The goal of the policy is to collect more tax revenue from elite institutions with large savings accounts. Supporters believe these schools should contribute more to the public or use their wealth to lower the cost of tuition for their students.
  • If this becomes law, it would take away a larger portion of the money elite universities use for research, financial aid, and campus buildings. The new rules would apply to the first tax year after the bill is signed into law.

Milestones

2 milestones2 actions
Feb 7, 2025House

Referred to the House Committee on Ways and Means.

Feb 7, 2025

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Source Information

Document Type

Congressional Bill

Official Title

Endowment Accountability Act

Bill NumberHR 1128
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.
Read Full Bill Text

Sponsor

Analysis generated by AI. Always verify with official sources.