Protecting Endowments from Our Adversaries Act

House Votes

This bill would tax very large private colleges and universities if they buy or profit from investments tied to people or companies on certain U.S. government restricted lists. A covered school that buys one of these “listed investments” would owe a tax equal to 50% of the purchase value. If it earns money or gains from a listed investment that stayed on a list for a full year, it would pay a 100% tax on that profit (income and gains after related costs) .

“Listed investments” include stock, debt, or derivatives linked to anyone on the Commerce Department’s Entity List, Military End User List, or Unverified List, or on the FCC’s Covered List. The Secretary must create and maintain a combined “listed persons” list within 60 days of the law taking effect. These rules also apply to holdings through mutual funds or ETFs unless those funds are certified as not holding listed investments.

• Who is affected: Private (not state-run) colleges and universities with over $1 billion in assets not used directly for education; assets of related foundations may count toward this total.
• What changes: 50% tax on purchases of listed investments; 100% tax on profit from listed investments held on a list for a full year; debt is measured by its principal amount. Pooled funds can be included unless certified “clean” .
• When: The Secretary must set up the combined list within 60 days after enactment; the bill otherwise ties taxes to each taxable year’s activity.