Sponsors (24)
The bill makes it easier and tax-favored for nonprofits and donors to fund collegiate student housing—likely increasing housing supply—but raises risks of taxpayer-subsidized non-academic amenities and potential gaps in oversight of complex grant arrangements.
Full-time students and colleges: More philanthropic grants can be used to build or improve student housing, increasing on-campus housing availability for full-time students.
Donors, estates, and taxpayers: Gifts and bequests used for collegiate housing grants remain eligible for federal charitable tax deductions, preserving tax incentives that encourage private funding for student housing.
Nonprofit grantmakers and higher-education institutions: Grantmaking to college housing projects will not cause nonprofit grantmakers to lose §501(c)(3) status, making it administratively safer for nonprofits to fund housing.
Taxpayers: Federal tax advantages for housing grants could effectively subsidize private, social, or recreational uses of student housing, shifting costs to taxpayers for amenities that may not be primarily educational.
Nonprofits and taxpayers: Treating grants made through related §501(c)(2) or §501(c)(7) title-holding entities as direct grants may enable complex arrangements that obscure oversight and make it harder to ensure funds are used as intended.
Students and colleges: Excluding physical fitness facilities from eligible projects could prevent some campuses or communities from using grant funding for desired wellness and recreation infrastructure.
Based on analysis of 2 sections of legislative text.
Specifies that grants for collegiate housing and infrastructure won't, by themselves, jeopardize 501(c)(3) status or donors' charitable tax treatment.
Official title: To amend the Internal Revenue Code of 1986 to provide for collegiate housing and infrastructure grants.
Introduced March 26, 2025 by Blake D. Moore · Last progress March 26, 2025
Creates a safe harbor in the tax code so that charitable organizations can make grants for college dormitories and other student residential facilities without jeopardizing their 501(c)(3) charitable status or related donor tax deductions. It defines what counts as a "collegiate housing and infrastructure grant," limits covered uses (excludes physical fitness facilities), and applies the rule to grants made in taxable years ending after enactment. The provision also treats grants routed through certain holding entities as if made directly to the qualifying organization so long as the housing serves substantially all full‑time students of a nearby college or university.