1. United States
2. N.J.
3. Letter

I am writing to you as a concerned citizen to urge you to oppose any proposed legislation that would significantly increase the University Endowment Tax, currently under consideration by the Ways and Means Committee. The reported proposal to raise the tax rate on university endowments - potentially as high as 21% for institutions like Princeton, MIT, and Yale - would represent a drastic and damaging shift from the current 1.4% rate. Such a steep increase would have wide ranging negative consequences for students, families, and the future of higher education in America. University endowments are not stockpiles of idle cash. They are carefully managed funds that directly support critical services for students, including financial aid, research opportunities that benefit humanity, mental health resources, and other educational programs that enrich the student experience and make world class education accessible to students from all economic backgrounds. At institutions like Princeton, a significant portion of endowment returns are dedicated to need-based financial aid, making it possible for more than half of Princeton students from all walks of life to attend without taking on crushing debt. A 21% tax would divert hundreds of millions of dollars away from these life-changing investments for our children’s future. I respectfully ask you to stand up for educational opportunity and oppose any increase to the University Endowment Tax. At a time when we should be expanding access to quality education and support services for young people, this legislation would do just the opposite. Thank you for your attention to this issue and for your service to our community.