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These 26 Rich Private Colleges Just Got A Tax Cut From Republicans
DAILY COVER
These 26 Rich Private Colleges Just Got A Tax Cut From Republicans
Republicans were aiming to shield Hillsdale College, a small conservative Christian liberal arts school in Michigan, from the endowment tax.
JIM WEST/ZUMA PRESS/NEWSCOM
By Emma Whitford, Forbes Staff. I write about education with a focus on finance and entrepreneurship.
Jul 05, 2025 at 06:30am EDT
While 11 schools, including Princeton, MIT, Yale and Harvard, were hit with a higher tax on their endowments’ investment earnings, Congress exempted wealthy small schools, including Swarthmore, Amherst, Hillsdale and CalTech, from the levy.
Strange things happen when details of a massive tax and budget bill, like the one President Donald Trump signed yesterday, are tweaked behind closed doors. Among them: A couple dozen of the nation’s wealthiest small private colleges will be getting a tax cut next year, even as bigger rich universities, including Princeton, MIT, Yale and Harvard, will be slammed with higher taxes.
It all began as an effort by House Republicans to dramatically raise the excise tax imposed on the earnings of college endowments, and particularly the endowments of wealthy “woke” schools like Harvard University that they (and President Donald Trump) have targeted.
But as it turns out, while Harvard’s tax bill will likely more than double, some smaller schools with famously left-leaning student bodies (e.g. Swarthmore College and Amherst College) are getting tax relief. That’s because schools with fewer than 3,000 full-time equivalent tuition-paying students will be exempt from the revamped endowment tax beginning next year. It currently applies to private schools with more than 500 full-time equivalent tuition-paying students and endowments worth more than $500,000 per student.
{snip}
These 26 Rich Private Colleges Just Got A Tax Cut From Republicans
Republicans were aiming to shield Hillsdale College, a small conservative Christian liberal arts school in Michigan, from the endowment tax.
JIM WEST/ZUMA PRESS/NEWSCOM
By Emma Whitford, Forbes Staff. I write about education with a focus on finance and entrepreneurship.
Jul 05, 2025 at 06:30am EDT
While 11 schools, including Princeton, MIT, Yale and Harvard, were hit with a higher tax on their endowments’ investment earnings, Congress exempted wealthy small schools, including Swarthmore, Amherst, Hillsdale and CalTech, from the levy.
Strange things happen when details of a massive tax and budget bill, like the one President Donald Trump signed yesterday, are tweaked behind closed doors. Among them: A couple dozen of the nation’s wealthiest small private colleges will be getting a tax cut next year, even as bigger rich universities, including Princeton, MIT, Yale and Harvard, will be slammed with higher taxes.
It all began as an effort by House Republicans to dramatically raise the excise tax imposed on the earnings of college endowments, and particularly the endowments of wealthy “woke” schools like Harvard University that they (and President Donald Trump) have targeted.
But as it turns out, while Harvard’s tax bill will likely more than double, some smaller schools with famously left-leaning student bodies (e.g. Swarthmore College and Amherst College) are getting tax relief. That’s because schools with fewer than 3,000 full-time equivalent tuition-paying students will be exempt from the revamped endowment tax beginning next year. It currently applies to private schools with more than 500 full-time equivalent tuition-paying students and endowments worth more than $500,000 per student.
{snip}