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119-hr-2686119th CongressWALLET

University Accountability Act

Sponsored By: Representative Malliotakis, Nicole [R-NY-11]

Introduced

Summary

Financial penalties for civil-rights violations by tax-exempt colleges would be created, paired with new reporting and mandatory reviews for repeat offenders. The bill ties penalties to an institution's administrative pay and requires disclosure of judgments and reversals on annual returns.

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  • Specified tax-exempt educational institutions would owe a penalty for each federal court judgment finding a Title VI violation, equal to the greater of $100,000 or 5% of their aggregate administrative compensation for the taxable year. The penalty attaches on the judgment date and must be refunded if that judgment is vacated.
  • After two determinations the Secretary must review whether the institution still qualifies for tax-exempt status. Vacated or reversed determinations do not count unless later reinstated.
  • Specified institutions, including state colleges and universities, must report each determination and any reversals on annual returns and are subject to existing return penalties for failures to file.

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Bill Overview

Analyzed Economic Effects

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

Colleges face penalties and IRS review

This bill would make tax‑exempt colleges and universities pay a penalty for each federal court judgment that finds a Title VI civil‑rights violation. The penalty would be at least $100,000, or for schools that file under section 6033(a), the greater of $100,000 or 5% of annual administrative pay. The bill says the penalty would be due on the judgment date; if the judgment is later reversed, the penalty would be refunded. After more than two valid post‑enactment judgments, the IRS would review whether the school should keep its tax‑exempt status. Schools would also need to report each judgment and any reversals on their annual return; state colleges would have to file in any year with such a judgment. Related judgments from the same facts could be treated as one, and normal IRS deadlines for assessment and refunds would not apply to these penalties.

Sponsors & CoSponsors

Sponsor

Malliotakis, Nicole [R-NY-11]

NY • R

Cosponsors

  • Rep. Stefanik, Elise M. [R-NY-21]

    NY • R

    Sponsored 4/7/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 4/7/2025

Roll Call Votes

No roll call votes available for this bill.

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