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S1684119th CongressWALLET

A bill to require audits of institutions with respect to disclosures of foreign gifts, and for other purposes.

Sponsored By: Senator Cruz, Ted [R-TX]

Introduced

Summary

Stronger audits and steep excise taxes on foreign funding at U.S. colleges and universities. This bill creates a new audit program under the Higher Education Act and adds two excise taxes that target foreign-sourced gifts and unreported foreign funding.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

300% tax on some foreign gifts

If enacted, certain colleges would pay a tax equal to 300% of income they receive from foreign "countries of concern". It would apply only to "applicable institutions" with at least 500 tuition-paying students last year and with over 50% of those students located in the United States. The tax would apply for taxable years beginning 60 days after enactment.

Penalty tax for unreported foreign funds

If enacted, an institution would owe a tax equal to 110% of any foreign gifts or contracts an audit finds it failed to report. The tax would be due within 180 days after the institution is notified of the audit results. If the unreported funds come from a foreign country of concern, this tax would be in addition to the 300% tax. The rule would apply for taxable years beginning 60 days after enactment.

Colleges face more foreign-gift audits

If enacted, the Education Secretary would audit at least 30 colleges every two years, starting within 60 days. Each audit would check the two prior reporting years. Audits must list any under- or over-reported foreign gifts or contracts and give donor country and dates. Audit reports would go to Congress and be posted online within 30 days.

Sponsors & CoSponsors

Sponsor

Cruz, Ted [R-TX]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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