RIFA Act

Summary

Requires many colleges and universities to file annual public reports disclosing investments in designated foreign adversaries and clarifies how private-college endowment assets are counted for the federal excise tax. It treats interests in pooled funds that hold flagged assets as reportable unless the pooled vehicle is certified otherwise, requires designated compliance officers to certify reports, and directs the Department of Education to create a searchable public database for these reports.

• Many higher-education institutions must file an annual public report disclosing investments in designated foreign adversaries if they purchased, sold, or held such investments in the prior year.
• Reports must include lists of investments of concern, year-end aggregate fair market value, sales value, and capital gains.
• Interests in pooled vehicles (mutual funds, ETFs, pooled funds) are treated as investments of concern if those vehicles hold flagged assets unless certified otherwise by the Secretary after consulting Treasury and the SEC.
• The Department of Education must create a public, searchable database of all reports by May 31 of the calendar year after enactment and publish each report within 30 days of receipt.
• The bill clarifies application of the private-college endowment excise tax, including rules for related organizations, debt valuation, and limits on double-counting assets.
• Institutions must designate compliance officers who certify the accuracy of their reports.
• Secretary of Education is required to consult with Treasury and the SEC to develop procedures, certifications, and rules for reporting and pooled-vehicle treatment.
• Reporting applies only for years when institutions have relevant transactions or holdings; the law excludes assets not available to the institution from counting.
• Public disclosure could increase transparency but also raise compliance costs and potential pressure to divest from flagged investments.