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H.R. 5916 115th Congress House

REDUCE Act of 2018

Official title: To amend the Internal Revenue Code of 1986 to impose a tax on institutions of higher education that fail to use 33 percent of the growth in endowment value for… Show full official titleShow less

Official title: To amend the Internal Revenue Code of 1986 to impose a tax on institutions of higher education that fail to use 33 percent of the growth in endowment value for grants for working-family students each year, and for other purposes.

Introduced: May 22, 2018 See on congress.gov
Education Consumer affairsEducation of the disadvantagedEducation programs fundingEducational facilities and institutions
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Higher educationIncome tax deductionsLicensing and registrationsSales and excise taxesStudent aid and college costs
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This bill died when the 115th Congress ended
It never became law before the 115th Congress (2017–2018) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
May 22, 2018
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
May 22, 2018
Introduced in House
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 Latest action May 22, 2018

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

 Plain-English summary Congressional Research Service

Reducing Excessive Debt and Unfair Costs of Education Act of 2018 or the REDUCE Act of 2018

This bill imposes additional taxes on, and limits tax deductions for contributions to, certain institutions of higher education that (1) do not use a specified portion of net investment income for grants to working-family students, or (2) accept certain gifts that are restricted for uses other than scholarships.

A "working-family student" is an individual who (1) is enrolled (part-time or full-time) as an undergraduate student, and (2) whose household income for the year does not exceed 600% of the poverty line for a family of the size involved.

The bill modifies requirements for the tax-exempt status of institutions of higher education by adding requirements regarding (1) plans for limiting tuition increases, and (2) serving students who are eligible for Pell Grants or have household incomes that do not exceed 600% of the poverty line.

The bill also requires institutions of higher education to make certain disclosures regarding net tuition, the management of endowments or investments, institutional aid, and funds provided by parents or grandparents of students.

The revenues from the taxes imposed by this bill must be used to increase funding for the Pell Grant program.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
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APA
U.S. Congress. (2026). H.R. 5916: REDUCE Act of 2018. 115th Congress. Open America. https://openamerica.io/bill/115-HR-5916/
MLA
"H.R. 5916: REDUCE Act of 2018." 115th Congress, 2026, Open America, https://openamerica.io/bill/115-HR-5916/.
Bluebook (legal)
H.R. 5916, 115th Cong. (2026), https://openamerica.io/bill/115-HR-5916/.
Markdown link
[H.R. 5916: REDUCE Act of 2018](https://openamerica.io/bill/115-HR-5916/)
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