Protecting Endowments from Our Adversaries Act

New taxes on wealthy colleges

This bill would add a new excise tax on some private colleges and universities. It would apply to private eligible institutions (not state schools) with more than $1 billion in non‑exempt assets. They would pay a one‑time tax equal to 50% of the value of any "listed investment" they acquire. They would also face a 100% annual tax on net income and gains from listed investments held for a full year. "Listed investments" would mean equity, debt, or contracts tied to firms on Commerce or FCC lists, and Treasury would publish a consolidated list within 60 days. The rules would count related organizations' assets and treat pooled funds as chains of ownership, with certification options. The taxes would start for taxable years ending after the earlier of the first calendar year after enactment or one year after the Treasury sets the list. Purchases before that calendar year, and income or gains before the one‑year listing period, would be carved out.