Sponsors (23)
The bill makes it easier for nonprofits and donors to fund student housing through tax-advantaged grants—expanding housing for students—but raises risks of public subsidy for non-essential uses and creates potential oversight and transparency gaps.
Nonprofits and their donors can provide tax-advantaged grants for collegiate housing without jeopardizing 501(c)(3) status, preserving charitable deduction treatment for donors.
Colleges and universities can receive grants to build or improve student housing, increasing availability of housing for full-time students.
Taxpayers may effectively subsidize private or social/recreational portions of student housing through tax-advantaged grants, shifting some costs from institutions or residents onto the public.
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 reduce transparency.
Excluding physical fitness facilities from eligible uses may limit funding for campus wellness and recreation infrastructure that some students and communities want.
Based on analysis of 2 sections of legislative text.
Clarifies that charitable grants for building, improving, operating, or maintaining student housing do not by themselves jeopardize 501(c)(3) status and preserves related charitable tax treatment.
Introduced March 26, 2025 by Blake D. Moore · Last progress March 26, 2025
Makes grants for student housing and related infrastructure by tax-exempt charities explicitly allowable without automatically jeopardizing their 501(c)(3) tax-exempt status or related charitable deduction and estate/bequest treatment. Defines what counts as a "collegiate housing and infrastructure grant" and what property qualifies as collegiate housing, and clarifies treatment of certain intermediary entities that hold title for student housing. Applies to grants made in taxable years ending after enactment and does not create new funding programs or direct federal spending; it only changes how certain grants are treated under federal tax rules.