Bill · S. 2045· Senate(119-S-2045)
Protecting Endowments from Our Adversaries Act
- Introduced
- 6/12/2025
- Last activity
- 6/12/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Pete Ricketts
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Protecting Endowments from Our Adversaries Act," seeks to amend the Internal Revenue Code of 1986. It proposes a new excise tax on certain investments held by private colleges and universities. The tax applies to "listed investments" which are related to entities on specific lists maintained by the Secretary of Commerce or the FCC. Specifically, it imposes a 50 percent tax on the fair market value of acquired listed investments. Additionally, it imposes a 100 percent tax on net income and gains from "1-year listed investments." These rules apply to specified educational institutions with assets exceeding $1,000,000,000.
Who it would affect, and how
Potential Positive Impacts for People
- Creation of Certification Procedures: The Secretary will establish procedures that allow regulated investment companies, exchange traded funds, and other pooled investments to be certified as not holding any listed investments (Section 2(c)(4)(B)).
Potential Negative Impacts for People
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Tax on Acquisition of Investments: Specified educational institutions that acquire listed investments will be hit with a tax equal to 50 percent of the fair market values of those investments (Section 2(a)).
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Tax on Net Income and Gains: Institutions may face a tax equal to 100 percent of the excess of income and recognized gains over deductions and losses for "1-year listed investments" (Section 2(b)(1)).
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Broad Definition of Listed Investments: A "listed investment" includes stock, equity, profits interest, debt, or any contract or derivative related to a person on specific government lists, such as the Entity List or the FCC Covered List (Section 2(c)(1) and (3)).
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Application to Pooled Funds: The tax applies even if investments are acquired through a chain of ownership via regulated investment companies or exchange traded funds (Section 2(c)(4)(A)).
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High Asset Threshold for Institutions: This tax specifically targets "specified educational institutions," which includes private colleges and universities with assets exceeding $1,000,000,000 (Section 2(d)(1)).
- 6/12/2025
- Read twice and referred to the Committee on Finance.
- 2 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tom CottonRepublican · Arkansas
Deb FischerRepublican · Nebraska