This bill imposes new excise taxes on private colleges and universities with endowments exceeding $1 billion if they invest in companies flagged as national security threats. Specifically, universities would face a 50 percent tax on the value of new investments in listed adversary entities and a 100 percent tax on any income or gains earned from these investments held for at least one year. The "listed investments" are defined as financial interests in foreign companies that appear on security-related government lists maintained by the Commerce Department, Defense Department, Treasury Department, and Federal Communications Commission, primarily targeting Chinese military-industrial companies. The bill applies to private institutions but excludes public universities, and it takes effect either at the end of the first full calendar year after the bill is enacted or once the Treasury Department establishes the required list of flagged entities, whichever comes first. Investments made before the effective date would not be subject to the tax.
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