The leaders of the Senate Finance Committee have urged the U.S. treasury secretary to change the federal tax form that many tax-exempt entities file each year, with the goal of ramping up scrutiny of the complex financial operations of private nonprofit colleges and hospitals. The letter from Sens. Max Baucus (D-Mont.) and Charles Grassley (R-Iowa) offers some new insights -- worrisome to college tax experts -- into the senators' interest in the possibility of penalizing institutions that are perceived as spending too small a proportion of their endowment assets.
Less than two weeks after the House Appropriations subcommittee for education programs delivered a major potential boost to the maximum Pell Grant and the National Institutes of Health, the mirroring Senate panel delivered significantly less in its own 2008 spending bill Tuesday.