Bill > S2045

This bill introduces an excise tax targeting investments made by large private colleges and universities in entities on specific U.S. government watchlists related to national security concerns. Specifically, the bill imposes a 50% tax on the fair market value of investments in entities listed on the Commerce Department's Entity List, Military End User List, Unverified List, or the FCC's Covered List. For investments held for one year or less, the bill mandates a 100% tax on net income from those investments. The tax applies only to private educational institutions with total assets over $1 billion that are not state colleges or universities. The bill defines "specified interests" broadly to include stocks, equity, debt, and derivative contracts. Investments made through pooled funds like mutual funds or ETFs are not exempt unless specifically certified as not holding listed investments. The tax aims to discourage private universities from investing in potentially problematic foreign entities by creating significant financial disincentives. The bill, titled the "Protecting Endowments from Our Adversaries Act," would be implemented through the Internal Revenue Code and allows the Treasury Secretary to develop detailed implementation regulations.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2045/all-info