Bill > S936

This bill introduces the "Woke Endowment Security Tax Act of 2025" (WEST Act), which establishes a new 6 percent excise tax on large private college and university endowments. The tax would apply to educational institutions with total assets exceeding $11.9 billion or, in the case of state-operated colleges, assets over $10.5 billion, excluding assets directly used for the institution's exempt educational purposes. The tax would be calculated based on the aggregate fair market value of the institution's assets at the end of the preceding taxable year, specifically targeting the first taxable year beginning in 2025. Importantly, religious institutions are exempt from this tax. The bill amends the Internal Revenue Code of 1986 by adding a new section (Section 4969) to implement this excise tax, with the aim of generating revenue from the substantial endowments of wealthy private universities. The tax would become effective for taxable years starting after December 31, 2024, potentially impacting some of the most financially well-resourced educational institutions in the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/936/all-info