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119-hr-1905119th CongressWALLET

Protecting American Students Act

Sponsored By: Representative Buchanan, Vern [R-FL-16]

Introduced

Summary

Links private-college endowment tax student counts to federal student eligibility rules and forces new disclosure. This bill would change which students count toward the excise tax on private college endowments by requiring that only students who meet the Higher Education Act (HEA) section 484(a)(5) eligibility test be included in the student count.

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  • Private colleges and universities: Institutions would have some student groups excluded from the endowment-tax student count unless those students meet HEA section 484(a)(5). This changes the pool of students used to determine whether an institution meets the endowment tax threshold.
  • Students: Individuals who do not meet the HEA section 484(a)(5) eligibility standard would be excluded from the count used in the endowment tax calculation.
  • Tax reporting and transparency: Applicable educational institutions subject to section 4968(b) would be required to report on their tax return the number of students counted before and after the new exclusion.

The changes would apply to taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Wealthy colleges count fewer students, report both counts

Private colleges with large endowments would count only students who meet federal aid rules when testing the endowment tax. Counting fewer students could keep some schools below the tax threshold. Affected schools would also have to report two counts on their return: before and after the new exclusion. This would apply to tax years that begin after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Buchanan, Vern [R-FL-16]

FL • R

Cosponsors

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 3/6/2025

  • Rep. Kelly, Mike [R-PA-16]

    PA • R

    Sponsored 3/6/2025

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 3/6/2025

  • Rep. Murphy, Gregory F. [R-NC-3]

    NC • R

    Sponsored 3/6/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 3/6/2025

  • Rep. Van Duyne, Beth [R-TX-24]

    TX • R

    Sponsored 3/6/2025

  • Rep. Stefanik, Elise M. [R-NY-21]

    NY • R

    Sponsored 4/7/2025

  • Rep. Malliotakis, Nicole [R-NY-11]

    NY • R

    Sponsored 9/26/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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