Bill Focuses on Wealthy Colleges' Endowment Income

U.S. Representative Tom Reed, a New York Republican who has been critical of the financial policies of colleges and universities with large endowments, has drafted legislation to act on his concerns. Bloomberg reported that his draft bill would require colleges with endowments greater than $1 billion to spend at least 25 percent of endowment income on financial aid or risk losing their tax-exempt status. There are currently nearly 100 colleges and universities that would be covered by the legislation. Higher education leaders have generally opposed regulation of their endowments, and Reed told Bloomberg he expected lobbying efforts against his bill to intensify.