Press Releases

Washington, D.C. - 2/7/2025… Today, Congressman Mike Lawler (NY-17) introduced the Endowment Accountability Act, a bill aimed at ensuring wealthy universities use their massive endowments to benefit students and academic programs rather than hoarding billions in tax-advantaged funds.

“If these institutions aren’t using their resources to lower tuition, expand financial aid, and improve student services, then they should be paying their fair share. When profit is put above education, students lose,” said Congressman Lawler (NY-17). “The Endowment Accountability Act will encourage colleges and universities to invest in services for students and improve the quality of life on campus.”

In 2017, Congress implemented the first-ever endowment excise tax, applying a 1.4% tax on endowment income for universities with at least $500,000 per student in endowment funds. However, this tax only applied to a select few institutions, excluding wealthy universities such as Columbia and Cornell, that fell just below the threshold. Additionally, the 1.4% tax rate proved too low to create meaningful changes in how universities allocate their funds.

Congressman Lawler’s Endowment Accountability Act will close these loopholes by:

• Lowering the per-student endowment threshold from $500,000 to $200,000, ensuring more well-funded universities are covered by the tax.
• Raising the excise tax rate from 1.4% to 10% of endowment income, increasing the financial incentive for universities to spend their endowment on students and academic programs.

Congressman Mike Lawler is one of the most bipartisan members of Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties.