Sponsors (24)
The bill expands nonprofit and donor support for student housing (increasing housing supply and preserving tax incentives) while raising concerns that taxpayers could indirectly subsidize noneducational uses and that certain oversight gaps and exclusions (like fitness facilities) may create unintended limits or opacity.
Colleges and universities can receive nonprofit grants to build or improve student housing, increasing available housing for full‑time students.
Nonprofit grantmakers can fund college housing projects without losing their §501(c)(3) tax‑exempt status, enabling more philanthropic support for campus housing.
Donors and estates retain federal charitable deduction treatment when gifts are used for collegiate housing grants, preserving tax incentives for giving.
Taxpayers may subsidize private or social/recreational uses of student housing through tax‑advantaged grants, shifting public benefit toward facilities that can include noneducational uses.
Nonprofits and taxpayers face increased risk of opaque arrangements because treating grants routed through related §501(c)(2) or §501(c)(7) title‑holding entities as direct grants could enable complex structures that obscure oversight.
Students and colleges may be unable to receive grant funding for physical fitness facilities, limiting support for campus wellness infrastructure that some communities want.
Based on analysis of 2 sections of legislative text.
Clarifies that grants for college dorms and related infrastructure do not by themselves jeopardize a 501(c)(3) status and preserves related charitable deduction/estate treatment.
Introduced March 26, 2025 by Blake D. Moore · Last progress March 26, 2025
Creates a tax-code rule saying that making grants to build, improve, operate, or maintain student housing and related infrastructure will not by itself cause a 501(c)(3) charitable organization to fail the requirement that it be organized and operated for charitable or educational purposes. It also preserves charitable gift and estate/bequest deduction treatment tied to those grants. The bill defines what counts as "collegiate housing and infrastructure grants" and "collegiate housing property," excludes grants used to create physical fitness facilities, and treats certain intermediary entities as if the grant were made directly to the final organization. The rule applies to grants in taxable years ending after enactment.