Establishes ineligibility for institutions of higher education to receive funds under the Higher Education Act of 1965 if they fail to disestablish permanent encampments on campus.
Defines “encampment” as any temporary or permanent living structure on campus, and “permanent encampment” as one existing for 7 days or more.
Specifies that ineligibility applies if encampment occupants interfere with core university functions or obstruct student access.
Allows institutions to apply for regaining eligibility 5 years after being declared ineligible.
The amendment takes effect upon enactment, with ineligibility for federal assistance starting July 1, 2025.
Introduces a 50% excise tax on the endowment income of disqualified educational institutions.
Defines “disqualified educational institution” as one ineligible for federal funds under the Higher Education Act due to campus disorder.
Provides an exception for institutions that provide grant funds equal to the covered federal financial assistance amount for continuously enrolled students.
Clarifies definitions related to continuously enrolled students and covered federal financial assistance amount.
The excise tax provisions apply to taxable years ending after July 1, 2025.