Sponsor
Ashley Brooke Moody
Senator · R-FL
Raises the excise tax on net investment income for large private college endowments from 8% to 15% and directs Treasury to transfer the additional revenue to Perkins CTE programs annually.
Senator · R-FL
The bill generates new revenue by taxing very large college endowments to boost Perkins CTE and Title I funding — improving vocational training and resources for low-income students — but risks straining affected institutions, introducing funding volatility tied to a narrow tax base, and adding administrative costs.
Students in career and technical education (CTE) programs and workforce-development participants will receive increased annual funding for Perkins CTE through a transfer of measured revenue gains, enabling expanded vocational training and improved job-readiness.
The federal government will raise new revenue by imposing a higher excise tax on very large private college endowments, creating a funding source that could reduce deficits or be allocated to other priorities.
Title I schools and low-income students will gain additional resources because the measured revenue increases are directed to Title I programs.
Very large private colleges and universities will face higher tax bills, which may force those institutions to cut academic programs, reduce financial aid, delay hires, or shrink services — directly affecting students and campus operations.
Linking Perkins CTE funding to revenue from a narrow tax base (very large endowments) creates volatility: CTE funding would fluctuate with measured tax receipts rather than being a stable, fixed appropriation, risking inconsistent program support.
Taxpayers will bear additional administrative and compliance costs associated with measuring endowment revenue increases and executing annual transfers, adding indirect costs to the implementation.
Based on analysis of 2 sections of legislative text.
Raises the excise tax on net investment income for large private colleges and universities from 8% to 15% and directs Treasury to annually transfer to the Carl D. Perkins Career and Technical Education Act an amount equal to the additional revenue generated by that rate increase. The tax increase applies to taxable years beginning more than 12 months after enactment. The bill ties the additional revenue each year to a transfer from the general fund to Perkins programs, effectively using the incremental excise-tax receipts to support career and technical education funding.
Official title: Amend the Internal Revenue Code of 1986 to increase the excise tax on investment income of private colleges and universities and provide greater funding to career and technical education.
Introduced June 24, 2026 by Ashley Brooke Moody · Last progress June 24, 2026