Washington and Lee University, home to one of the country’s largest per-student endowments, would see its investment returns taxed under the tax bills passed by the U.S. House and Senate.
Other private college endowments in Virginia, including Hollins University’s, could be taxed too under one or both version of the bills, which impose the 1.4 percent excise tax at different thresholds. Those differences and others will be worked out in conference this month; a joint bill is expected by Christmas.
Higher education officials warn the legislation as written would have dire consequences for students, leading potentially to tuition increases, scholarship decreases and staff cuts. They’ve lobbied to remove the provisions taxing endowments entirely or amend them to blunt the impact.
“Taxing endowments that provide real money to support students is a terrible idea,” Washington and Lee President Will Dudley said. “It hurts students and families.”
