The TRADES Act increases the federal excise tax on investment income earned by private colleges and universities from 8 percent to 15 percent, generating additional revenue that would be directed to career and technical education programs. The higher tax rate applies to endowment investment returns at wealthy private institutions, making those schools contribute more to federal coffers based on their investment income. The revenue generated from this tax increase would be transferred annually to support career and technical education through the Carl D. Perkins Career and Technical Education Act, providing additional funding to states for job training and apprenticeship programs. The tax change takes effect for the taxable year beginning 12 months after the bill becomes law, giving institutions advance notice before the higher rate applies.