Rep. Cline Introduces H.R. 6651 – The Use Your Endowment Act

WASHINGTON – On May 1, 2020, Congressman Ben Cline (VA-06) introduced H.R. 6651 – the Use Your Endowment Act. The legislation was introduced in conjunction with House Judiciary Committee Ranking Member Jim Jordan (OH-04), Congressman Mike Gallagher (WI-08), and Senator Josh Hawley (R-MO).

H.R. 6651 deems institutions of higher education with an endowment greater than $10 billion to be ineligible to receive any funds made available by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This bill would also require colleges and universities with an endowment greater than $10 billion to return funds they may have previously received through the CARES Act to the Department of the Treasury.

Congressman Cline said, “Colleges and universities with multibillion-dollar endowments should not be requesting funds from the CARES Act. Money allocated through this legislation should be reserved for businesses and institutions in need, not entities that have virtually unlimited resources through their foundations and endowments. H.R. 6651 ensures that our Nation’s wealthiest schools can no longer take advantage of coronavirus relief funding at the expense of the American taxpayer.”

Ranking Member Jordan said, “This bill shouldn’t be controversial or partisan. If universities have large endowments, they should spend some of that endowment on their students first, before seeking a federal bailout. This legislation ensures that large universities are held accountable to taxpayers in the future, while at the same time directing funds to those actually in need. I’m proud to stand behind this important legislation with Senator Hawley and Congressman Cline.”

Senator Josh Hawley said, “Universities with massive endowments should not be getting taxpayer money unless they spend some money out of their own pockets to actually help their students. This is common sense. Relief funds were intended for schools that need it, not wealthy universities that sit on huge endowments. It’s greed, plain and simple, and it’s wrong.”

The Use Your Endowment Act was introduced following the revelation that institutions such as Harvard, which has a $40 billion endowment, had received millions of dollars in aid following the passage of the CARES Act.