House Ways and Means Committee Advances Controversial Bills
July 15, 2024

​The House Ways and Means Committee last week advanced two higher ed-related tax bills, both of which could have serious consequences for colleges and universities.The University Accountability Act proposes stringent financial penalties for institutions found in violation by a federal court of Title VI of the Civil Rights Act. Offered as an effort to address antisemitism on campuses, this bill has sparked intense debate, with proponents arguing for increased accountability and others, including ACE, expressing concern that it would undermine the current Title VI enforcement framework and spawn needless—and expensive—litigation.

The Protecting American Students Act has also raised alarms in the higher education community. This legislation proposes changing the endowment tax to cover more institutions, possibly affecting how many international students and DACA recipients the affected institutions enroll. As ACE’s Steven Bloom told Inside Higher Ed, the bill just makes the current tax on some endowments, already a bad policy, even worse. It doesn’t do anything its supporters claim it would do, such as enhance access or lower tuition—all it does it take money out of the hands of institutions, usually from charitable resources, and send it to federal coffers.

Before the vote, ACE and five other education associations sent a letter to the committee underscoring their commitment to combating discrimination and fostering inclusive campus environments. In the letter, which was introduced into the record during the markup, the groups emphasized that while they share the concern over rising antisemitism, they believe existing Title VI regulations already provide robust mechanisms to address these issues effectively.

Neither bill is expected to have any traction in the Senate.