Title: Use Your Endowment Act
Policy area: Education

Summary:
Use Your Endowment Act
This bill deems certain institutions of higher education (IHEs) ineligible to receive certain emergency relief funds to address the coronavirus (i.e., the virus that causes COVID-19).
Specifically, an IHE with an endowment greater than $10 billion in 2019 is generally ineligible to receive such funds and must return any funds it received to the Department of Education (ED). However, such an IHE may receive and keep these funds if it provides documentation to ED that it expended 1,000% of the amount of the funds on emergency relief (e.g., financial-aid grants to students).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3589 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3589

To amend the higher education emergency relief fund under the CARES Act 
to restrict eligibility to institutions of higher education that owned 
endowment assets whose average monthly value was equal to or less than 
  $10,000,000,000 in 2019, unless the institution expends additional 
       institutional funds on higher education emergency relief.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2020

 Mr. Hawley (for himself, Mrs. Blackburn, Ms. McSally, Mr. Rubio, and 
  Mr. Braun) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the higher education emergency relief fund under the CARES Act 
to restrict eligibility to institutions of higher education that owned 
endowment assets whose average monthly value was equal to or less than 
  $10,000,000,000 in 2019, unless the institution expends additional 
       institutional funds on higher education emergency relief.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Use Your Endowment Act''.

SEC. 2. AMENDMENT TO THE HIGHER EDUCATION EMERGENCY RELIEF FUND.

    Section 18004 of the CARES Act (Public Law 116-136) is amended by 
adding at the end the following:
    ``(f) Restriction on Endowment Size.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an institution of higher education shall not be eligible 
        to receive funds under this section if the institution owned 
        endowment assets whose average monthly value was greater than 
        $10,000,000,000 in 2019, unless the institution provides 
        documentation to the Secretary that the institution expended an 
        amount equal to not less than 1000 percent of the amount of 
        funds to be awarded to the institution under this section for 
        the purposes described in subsection (c).
            ``(2) Repayment of funds.--Notwithstanding any other 
        provision of law, an institution of higher education that owned 
        endowment assets whose average monthly value was greater than 
        $10,000,000,000 in 2019, and has not provided documentation to 
        the Secretary that the institution expended an amount equal to 
        not less than 1000 percent of the amount of funds awarded to 
        the institution under this section for the purposes described 
        in subsection (c), and received funds under this section before 
        the date of enactment of this subsection, shall repay such 
        funds received to the Secretary.''.
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