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Penalties for Universities Violating Civil Rights and Tax-Exempt Status Review.

New regulations impose financial penalties on tax-exempt educational institutions if federal courts rule they have violated civil rights. Additionally, in cases of repeated violations, the tax-exempt status of such institutions will undergo a mandatory review. This aims to increase accountability for universities regarding civil rights compliance.
Key points
Tax-exempt universities will face financial penalties for each federal court ruling of civil rights violation.
The penalty will be at least $100,000 or 5% of the institution's administrative compensation in the year of the violation.
After two civil rights violation rulings, an institution's tax-exempt status will be subject to mandatory review.
Universities will be required to report civil rights violation determinations in their annual tax filings.
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Introduced
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Additional Information
Print number: 119_HR_2686
Sponsor: Rep. Malliotakis, Nicole [R-NY-11]
Process start date: 2025-04-07