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Tax on Large University Endowments and Spending Requirement

This act introduces a new tax for large private universities with substantial endowments, aiming to encourage these institutions to spend more of their resources on educational purposes. Funds from this tax are earmarked for apprenticeship programs, potentially creating new opportunities for job seekers.
Key points
Imposes a 1% tax on endowments of private colleges and universities valued at $2.5 billion or more.
Requires these institutions to distribute at least 5% of their large endowments annually to avoid additional penalties.
Revenue from the tax will fund apprenticeship programs, supporting workforce development.
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Expired
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Additional Information
Print number: 117_S_1547
Sponsor: Sen. Cotton, Tom [R-AR]
Process start date: 2021-05-11
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Ivory Tower Tax Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1547.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-11.

What are the main provisions?

Key points include:

  • Imposes a 1% tax on endowments of private colleges and universities valued at $2.5 billion or more.
  • Requires these institutions to distribute at least 5% of their large endowments annually to avoid additional penalties.
  • Revenue from the tax will fund apprenticeship programs, supporting workforce development.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cotton, Tom [R-AR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Education Labor