[chrisk]

The signing of the OBBBA today locks in a piece of the financial puzzle that Levin is facing.

The new tax rate structure for university endowment income is 8%/4%/1.4% compared to the previous 1.4% across the board.
It could have been worse - in the House version, the rate topped out at 21%.

The threshold for the 8% tax rate is $2M endowment per student. The tax goes into effect on 9/1/26 for Stanford. With a lot of finagling by increasing the number of students and decreasing the endowment, Stanford may have a shot at the 4% rate. Each percentage point could be worth $20-30M.

[chrisk]

The signing of the OBBBA today locks in a piece of the financial puzzle that Levin is facing.

The new tax rate structure for university endowment income is 8%/4%/1.4% compared to the previous 1.4% across the board.
It could have been worse - in the House version, the rate topped out at 21%.

The threshold for the 8% tax rate is $2M endowment per student. The tax goes into effect on 9/1/26 for Stanford. With a lot of finagling by increasing the number of students and decreasing the endowment, Stanford may have a shot at the 4% rate. Each percentage point could be worth $20-30M.