Some wealthy United States colleges are pushing back against Congress over the tax-exempt status of their endowments. Higher education institutions can expect legislative changes with an increased focus on operations, costs, and spending. Some Republicans think that endowment income should be spent on tuition breaks for middle-income families and require that there be more transparency to determine whether universities are using the endowment money in the best interest of their students. Congress must look to undertake a comprehensive review of the entire statute regarding university endowments.
See Janet Lorin, Universities Seek to Defend Endowments from Republican Tax Plan, Financial Advisor, April 18, 2017.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
