University Accountability Act

This bill would fine certain tax‑exempt colleges and other eligible schools when a federal court rules they violated Title VI of the Civil Rights Act. The fine is owed as soon as the court issues its judgment. If that judgment is later overturned, the penalty must be refunded; if the judgment is reinstated, the penalty can be charged again.

The penalty for each court‑confirmed violation is the greater of $100,000 or, for institutions that must file specific IRS reports, 5% of the school’s total administrative compensation for the year of the violation. The government may treat multiple court judgments based on the same facts as a single violation for penalty and related reporting. Normal time limits on charging or refunding these penalties do not apply. The schools covered are “eligible educational institutions” that are tax‑exempt under federal law.

• Who is affected: Tax‑exempt, eligible educational institutions.
• What changes: New fines for each federal court judgment finding a Title VI civil rights violation; fines are at least $100,000 or 5% of administrative pay, whichever is higher (when applicable). Related judgments can be combined into one violation. Usual time limits for assessments/refunds don’t apply.
• When it applies: The fine is due on the date of the court’s judgment; refunds are issued if that judgment is later reversed.