The recent federal spending package, signed into law by Trump, includes significant changes that directly impact private colleges and universities. Among the notable provisions is an 8% tax imposed on the endowment income of institutions like Harvard, which could lead to financial repercussions for many schools. The legislation extends the existing endowment tax further, meaning colleges will soon need to allocate millions to comply with this new financial burden. While some lawmakers have attempted to scale back the endowment tax proposals and carveouts for specific institutions, such as Hillsdale College, the overall financial landscape for higher education is changing. Schools like Rice University are facing potential hits in the millions as these tax adjustments take effect. Moreover, the implications of this tax on endowments and alterations in executive compensation could reshape how universities manage their financial resources and invest in future workforce development.