Implications of 2025 Federal Tax Legislation for Higher Education

This has been a tumultuous year for higher education with a significantly increased focus on our sector by policymakers in our nation’s capital. In addition to executive orders, freezes and cancellations of research grants, and investigations into alleged antisemitism and sex discrimination, and other actions by the Trump Administration, the tax provisions contained within the One Big Beautiful Bill Act (OBBBA), signed into law in early July, also had several components affecting colleges and universities. Some of the tax provisions of the act will have negative consequences for colleges and universities yet others will likely be beneficial to our members and students.