💨 Abstract

A major tax increase on university endowments is causing financial strain for the wealthiest U.S. colleges, leading to staff layoffs and hiring freezes. This could reduce financial aid, making elite institutions less accessible to lower-income students. The new tiered tax system, signed by President Trump, will charge schools with over $2 million in assets per student an 8% rate, starting in 2026.

Courtesy: WTOP Staff