II 

118TH CONGRESS 

2D SESSION S. 4295 

To establish that institutions of higher education shall be ineligible for funds 

under the Higher Education Act of 1965 due to campus disorder. 

IN THE SENATE OF THE UNITED STATES 

MAY 9, 2024 

Mr. VANCE introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To establish that institutions of higher education shall be 

ineligible for funds under the Higher Education Act of 

1965 due to campus disorder. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Encampments or En5 dowments Act’’. 

6 SEC. 2. INELIGIBILITY DUE TO CAMPUS DISORDER. 

7 (a) IN GENERAL.—Part B of title I of the Higher 

8 Education Act of 1965 (20 U.S.C. 1011 et seq.) is amend9 ed by adding at the end the following: 


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1 ‘‘SEC. 124. INELIGIBILITY DUE TO CAMPUS DISORDER. 

2 ‘‘(a) IN GENERAL.—Notwithstanding any other pro3 vision of law, no institution of higher education shall be 

4 eligible to receive funds under this Act (including funds 

5 for Federal student assistance under title IV) or partici6 pate in programs under title IV if the Secretary deter7 mines that the institution of higher education has failed 

8 to disestablish any permanent encampment on the institu9 tion’s campus if occupants of the encampment, whether 

10 or not affiliated with the institution of higher education— 

11 ‘‘(1) have attempted to interfere with a core 

12 function of the institution of higher education; or 

13 ‘‘(2) have obstructed the ingress or egress of 

14 students. 

15 ‘‘(b) DEFINITIONS.—In this section: 

16 ‘‘(1) CAMPUS.—The term ‘campus’ has the 

17 meaning given the term in section 485(f)(6). 

18 ‘‘(2) CORE FUNCTION OF A UNIVERSITY.—The 

19 term ‘core function of a university’ means classroom 

20 instruction, research, and academic ceremonies per21 formed as part of the matriculation, education, or 

22 graduation of students, including commencement 

23 ceremonies. 

24 ‘‘(3) ENCAMPMENT.—The term ‘encampment’ 

25 means any establishment on the campus of the insti26 tution of higher education containing any tent, leanVerDate Sep 11 2014 19:12 Jun 11, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4295.IS S4295

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1 to, shack, or other structure erected for the purpose 

2 of maintaining a temporary or permanent place to 

3 live or reside, or where any bedding, sleeping bag, 

4 stove, or collection of personal belongings has been 

5 placed for the purpose of maintaining temporary or 

6 permanent habitability. 

7 ‘‘(4) PERMANENT ENCAMPMENT.—The term 

8 ‘permanent encampment’ means any encampment 

9 existing on the campus of the institution of higher 

10 education for 7 days or more. 

11 ‘‘(c) REGAINING ELIGIBILITY.—On the date that is 

12 5 years after the date on which an institution is declared 

13 ineligible under this section, that institution may submit 

14 an application to the Secretary containing a request to re15 gain such eligibility, and the Secretary shall consider such 

16 request.’’. 

17 (b) APPLICABILITY.—The amendment made by sub18 section (a) shall take effect on the date of enactment of 

19 this Act, and ineligibility with respect to any grant, loan, 

20 or work assistance provided under title IV of the Higher 

21 Education Act of 1965 (20 U.S.C. 1070 et seq.) due to 

22 a violation of subsection (a) shall apply on or after July 

23 1, 2025. 

24 (c) FAFSA DETERMINATIONS.—The Secretary of 

25 Education shall continue to receive and process the Free 


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1 Application for Federal Student Aid for continuously en2 rolled students (as defined in section 4969 of the Internal 

3 Revenue Code of 1986, as added by section 3), in order 

4 to make a determination about the covered Federal finan5 cial assistance amount (as defined under such section) for 

6 such students. 

7 SEC. 3. EXCISE TAX ON THE ENDOWMENTS OF CERTAIN 

8 DISQUALIFIED COLLEGES AND UNIVER9 SITIES. 

10 (a) IN GENERAL.—Subchapter H of chapter 42 of 

11 the Internal Revenue Code of 1986 is amended by adding 

12 at the end the following new section: 

13 ‘‘SEC. 4969. EXCISE TAX ON ENDOWMENT INCOME OF CER14 TAIN DISQUALIFIED COLLEGES AND UNIVER15 SITIES. 

16 ‘‘(a) TAX IMPOSED.—There is hereby imposed on 

17 each disqualified educational institution for any taxable 

18 year a tax equal to 50 percent of the aggregate fair market 

19 value of the assets of the institution at the end of the pre20 ceding taxable year. 

21 ‘‘(b) DISQUALIFIED EDUCATIONAL INSTITUTION.— 

22 For purposes of this section, with respect to a taxable 

23 year— 

24 ‘‘(1) IN GENERAL.—The term ‘disqualified edu25 cational institution’ means an eligible educational inVerDate Sep 11 2014 19:12 Jun 11, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4295.IS S4295

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1 stitution (as defined in section 25A(f)(2)) which is 

2 ineligible to receive funds under the Higher Edu3 cation Act of 1965 (including funds for Federal stu4 dent assistance under title IV of such Act) or par5 ticipate in programs under title IV of such Act pur6 suant to section 124 of such Act. 

7 ‘‘(2) EXCEPTION.—An institution shall not be 

8 treated as a disqualified educational institution for 

9 the taxable year if such institution— 

10 ‘‘(A) for the academic year ending with or 

11 within the taxable year, provides grant funds 

12 for all continuously enrolled students of the in13 stitution in an amount equal to the covered 

14 Federal financial assistance amount for such 

15 students, and 

16 ‘‘(B) demonstrates such assistance to the 

17 Secretary of Education. 

18 ‘‘(c) ASSETS.—The rules of section 4968(d) shall 

19 apply for purposes of this section. 

20 ‘‘(d) CONTINUOUSLY ENROLLED STUDENTS.—For 

21 purposes of this section, the term ‘continuously enrolled 

22 student’ means a student who— 

23 ‘‘(1) is enrolled at an institution of higher edu24 cation when that institution was determined to be 

25 ineligible for Federal student assistance pursuant to 


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1 section 124 of the Higher Education Act of 1965; 

2 and 

3 ‘‘(2) has continued enrollment in the same de4 gree program at that institution. 

5 ‘‘(e) COVERED FEDERAL FINANCIAL ASSISTANCE

6 AMOUNT.—For purposes of this section, the term ‘covered 

7 Federal financial assistance amount’ means the amount 

8 of Federal financial assistance under title IV of the Higher 

9 Education Act of 1965 (including through grants, loans, 

10 and work assistance) for which a student who is a continu11 ously enrolled student in a disqualified educational institu12 tion would have been eligible, with respect to an applicable 

13 award year, if the disqualified educational institution were 

14 participating in the financial assistance programs under 

15 such title IV, as calculated based on a student’s submis16 sion of the Free Application for Federal Student Aid and 

17 in accordance with part F of such title IV.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections 

19 for subchapter H of chapter 42 of the Internal Revenue 

20 Code of 1986 is amended by adding at the end the fol21 lowing new item: 

‘‘Sec. 4969. Excise Tax on the Endowments of Certain Disqualified Colleges 

and Universities.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years ending after July 

3 1, 2025. 

Æ 


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