Drew Ferguson U.S. House of Representatives from Georgia's 3rd district | Official U.S. House Headshot
Drew Ferguson U.S. House of Representatives from Georgia's 3rd district | Official U.S. House Headshot
U.S. Congressman Drew Ferguson (GA-03) introduced H.R. 8913, the Protecting American Students Act, on July 2, 2024. The bill proposes to amend the scope of the Endowment Tax calculation to include only students eligible for federal financial assistance under the Higher Education Act. This eligibility extends to students who are citizens, nationals, or permanent residents of the United States, or those who can provide evidence from the Immigration and Naturalization Service that they are in the U.S. for a purpose other than temporary with intentions of becoming a citizen or permanent resident. The bill excludes students in the U.S. temporarily or on student visas.
“The rising antisemitic behavior on college campuses is beyond unacceptable, and many leaders of these movements are international students,” said Congressman Ferguson. “United States educational institutions should not be rewarded with generous tax benefits while condoning this behavior, and the Protecting American Students Act ensures these universities create a safe environment for all students.”
The bill has garnered support from several original cosponsors: Representatives Mike Kelly (PA-16), Carol Miller (WV-01), Gregory Murphy (NC-03), David Kustoff (TN-08), Claudia Tenney (NY-24), Blake Moore (UT-01), Nicole Malliotakis (NY-11), and Elise Stefanik (NY-21).
Background information provided indicates that following the Hamas terrorist attack in Israel on October 7, America's elite institutions have been reported to harbor and promote antisemitic behavior, allowing Jewish students to face threats, harassment, and assaults. Data suggests that malign foreign influence, including some students on temporary student visas, has contributed to this rise in antisemitic behavior on college campuses.
Additionally, public reports show a significant increase in the number of foreign students at American universities, particularly Ivy League schools. These reports indicate that foreign students make up an average of 25% of student populations at Ivy League institutions, with some schools having as high as 50%.
The Trump tax cuts established the Endowment Tax to promote tax fairness among private foundations and tax-exempt organizations such as private colleges and universities. Currently, this tax imposes a 1.4 percent excise tax on the net investment income of a private college or university endowment if it has at least 500 tuition-paying students and an endowment value of at least $500,000 per full-time student. Approximately 35 institutions fall within the scope of this tax annually.