Sunday, December 18, 2016

Rich Colleges’ Endowments Targeted by Trump Backer in U.S. House - Janet Lorin, Bloomberg

Wealthy U.S. colleges must spend more of their endowment gains on aid for middle-class families or lose their prized tax-exempt status, a Republican U.S. House member and a vice chair of President-elect Donald Trump’s transition team proposed Monday. In little-noticed remarks during the campaign, Trump himself endorsed this view. Along with new endowment spending rules, U.S. Representative Tom Reed’s proposal would also require all universities receiving federal aid to provide more disclosure about administrative salaries and perks. In addition, colleges would have to file “cost-containment plans” to keep tuition increases below the inflation rate. The federal government would take money away from those who fail to curb costs -- and give it to those who do.

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