Yale won’t fully offset Trump’s tax through endowment spending. Why?
Amay Tewari
Despite having a multibillion-dollar endowment, Yale is enduring budget cuts and financial tightening this year in response to President Donald Trump’s recent endowment tax hike.
The tax-and-spending bill that Trump signed in July adjusted the annual tax on universities’ endowment revenues from the constant 1.4 percent tax established in 2017 to a tiered tax with a maximum tax rate of 8 percent. Based on the size of its endowment, Yale falls under the 8 percent tax rate. The tax will begin affecting Yale’s endowment returns on July…
