From the Brown Daily Herald: Brown will face a 4% tax rate on its endowment in the coming year, an increase from its current 1.4% endowment tax rate, according to the University’s annual financial report for fiscal year 2025 released early Thursday morning. The larger tax rate results from a growth in the endowment that has pushed the University’s endowment past the $750,000 per student threshold required to trigger a 4% endowment tax — a new limit established under the “One Big Beautiful Bill Act” passed by Congress in July...
In April, the White House announced plans to freeze $510 million of Brown’s federal funding, pausing reimbursements on existing grants from the National Institutes of Health and halting the awarding of new grants or routine grant renewals... Existing grants from the NIH comprised more than 70% of the University’s federal research funding, and totaled over $50 million in overdue payments by the end of the fiscal year on June 30. Brown is around 10 percentage points more reliant on federal funding than peer institutions, according to the report. Sponsored research is the largest source of research funding for Brown, encompassing grants and contracts from federal agencies, foundations and corporations and accounting for 20.5% of the University’s revenue...
Full story at https://www.browndailyherald.com/article/2025/11/brown-to-face-increased-4-endowment-tax-next-fiscal-year.
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