Endowment Tax Fairness Act

House Bill

H.R. 446

119th Congress

Endowment Tax Fairness Act

In Committee

Introduced:Jan 15, 2025

Primary Sponsor

H. Morgan Griffith

Representative

Republican

VA-9

Cosponsors

3

Quick Stats

Policy Area

Taxation

Summary

This bill dramatically increases the excise tax on large private university endowments from 1.4% to 21% of net investment income. The tax applies to private institutions with 500+ students and endowments of at least 500,000 dollars per student. Revenue would be deposited in the Treasury to reduce the national deficit and debt. The bill targets wealthy universities accumulating untaxed endowment gains.

Latest Action

Referred to the House Committee on Ways and Means.

SponsorH. Morgan Griffith (R-VA)

Introduced1/15/2025

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

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Vote Prediction

Endowment Tax Fairness Act

This bill dramatically increases the excise tax on large private university endowments from 1.4% to 21% of net investment income. The tax applies to private institutions with 500+ students and endowments of at least 500,000 dollars per student. Revenue would b

Community Breakdown

Pass

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0 predictions

This bill dramatically increases the excise tax on large private university endowments from 1.4% to 21% of net investment income. The tax applies to private institutions with 500+ students and endowments of at least 500,000 dollars per student. Revenue would be deposited in the Treasury to reduce the national deficit and debt. The bill targets wealthy universities accumulating untaxed endowment gains.

Bill Number: 446
Sponsor: H. Morgan Griffith (R-VA)
Introduced: 1/15/2025
Status: Referred to the House Committee on Ways and Means.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Endowment Tax Fairness Act
Bill Number: 446
Sponsor: H. Morgan Griffith (R-VA)
Status: Referred to the House Committee on Ways and Means.
Introduced: 1/15/2025
Summary: This bill dramatically increases the excise tax on large private university endowments from 1.4% to 21% of net investment income. The tax applies to private institutions with 500+ students and endowments of at least 500,000 dollars per student. Revenue would be deposited in the Treasury to reduce th

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill dramatically increases the excise tax on large private university endowments from 1.4% to 21% of net investment income. The tax applies to private institutions with 500+ students and endowments of at least 500,000 dollars per student. Revenue would be deposited in the Treasury to reduce the national deficit and debt. The bill targets wealthy universities accumulating untaxed endowment gains.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Endowment Tax Fairness ActThis bill increases the excise tax on the net investment income of certain private university and college endowments. Under current law, certain private universities and colleges with 500 or more tuition-paying students (of which more than 50% are located in the United States) and endowments that are at least $500,000 per student pay an excise tax in the amount of 1.4% on the net investment income from such endowments.The bill increases the amount of the excise tax to 21% of the net investment income from such university and college endowments. Further, the bill provides that amounts collected from the increase to the excise tax on the net investment income from such university and college endowments are (1) to be deposited into the general fund of the Treasury; and (2) used to reduce the national deficit and, subsequently, the national debt.

Key Points

Main provisions of the bill

Increases endowment tax from 1.4% to 21%
Applies to large private universities
Threshold: 500+ students, 500,000 dollars per student endowment
Revenue to reduce national deficit and debt
Targets wealthy university tax-exempt accumulation

How This Impacts Americans

Potential effects on citizens and communities

This represents a 15-fold increase in endowment taxation targeting elite universities. Supporters argue these institutions hoard wealth while receiving tax benefits and charging high tuition. The 21% rate matches the corporate tax rate. Critics contend it would reduce financial aid, research funding, and institutional investment. The targeting of universities reflects broader debates about nonprofit tax exemptions.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

446, 119th Congress (2025). "Endowment Tax Fairness Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-446

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