Bill > H3122

This bill establishes an annual 2.5% excise tax on private higher education institutions with endowment funds exceeding $1 billion, creating a new Educational Opportunity for All Trust Fund. The fund will be administered by a seven-member Board of Trustees, including representatives from the departments of higher education and early education and care, along with additional members appointed by legislative leaders who have expertise in education, child care, workforce representation, and higher education. The collected tax revenue will be exclusively used to subsidize higher education, early education, and child care costs for lower-income and middle-class residents of Massachusetts. The board will have general supervision of the trust and direct all expenditures, ensuring that no spending causes the fund to be in deficit at the end of a fiscal year. The appointed trustees will serve two-year terms and can be reappointed, with the board members electing a chair from among themselves. This legislation aims to leverage the significant financial resources of wealthy private universities to support broader educational access and affordability in the state.

Budget and Finance

https://malegislature.gov/Bills/194/H3122