H.R. 8913 – Protecting American Students Act

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Updated January 20, 2026 at 5:40 PM UTC

The Protecting American Students Act changes the tax rules for private colleges and universities by removing certain students from the count used to decide if the school must pay the excise tax on net investment income. It applies only to students who meet the eligibility criteria in the Higher Education Act. The bill also requires schools that are subject to the tax to report how many students were counted before and after the exclusion. The changes take effect for tax years beginning after Dec. 31, 2024.

Key Provisions

Adds a new paragraph to the tax code so that students who meet the Higher Education Act eligibility requirements are not counted when determining if a private college or university’s endowment triggers the excise tax on net investment income.
Requires each private college or university subject to the excise tax to report on its tax return the number of students counted for the tax calculation before and after applying the new exclusion rule.

Legislative Activity

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5 earlier actions

HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 798.

December 24, 2024

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HouseIntro Referral

Introduced in House

July 2, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 2, 2024

HouseCommittee

Committee Consideration and Mark-up Session Held

Ways and Means Committee

July 9, 2024

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 24 - 13.

Ways and Means Committee

July 9, 2024

HouseCommittee

Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-949.

Ways and Means Committee

December 24, 2024

HouseCalendars

Placed on the Union Calendar, Calendar No. 798.

December 24, 2024

Bill Text

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Reported in HouseIssued December 24, 2024

IB

Union Calendar No. 798

118th CONGRESS

2d Session

H. R. 8913

[Report No. 118–949]

IN THE HOUSE OF REPRESENTATIVES

July 2, 2024

Mr. Ferguson (for himself, Mr. Kelly of Pennsylvania, Mrs. Miller of West Virginia, Mr. Murphy, Mr. Kustoff, Ms. Tenney, Mr. Moore of Utah, Ms. Malliotakis, and Ms. Stefanik) introduced the following bill; which was referred to the Committee on Ways and Means

December 24, 2024

Additional sponsor: Mr. Smith of Nebraska

December 24, 2024

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Strike out all after the enacting clause and insert the part printed in italic

For text of introduced bill, see copy of bill as introduced on July 2, 2024

A BILL

To amend the Internal Revenue Code of 1986 to exclude certain students from the calculation to determine if certain private colleges and universities are subject to the excise tax on net investment income, and for other purposes.

1.

Short title

This Act may be cited as the Protecting American Students Act.

2.

Certain students not taken into account for purposes of calculation to determine if certain private colleges and universities are subject to excise tax on net investment income

(a)

In general

Section 4968(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(3)

Certain students not taken into account in determining endowment threshold

For purposes of paragraph (1)(D), a student shall not be taken into account with respect to an eligible educational institution unless such student meets the student eligibility requirements under section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5)).

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2024.

3.

Requirement to report certain information with respect to application of excise tax based on investment income of private colleges and universities

(a)

In general

Section 6033 of the Internal Revenue Code of 1986 is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection:

(o)

Requirement to report certain information with respect to excise tax based on investment income of private colleges and universities

Each applicable educational institution described in section 4968(b) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—

(1)

the number of students taken into account for purposes of the calculation in paragraph (1)(D) of section 4968(b) (determined before the application of paragraph (3) of such section), and

(2)

the number of students taken into account for purposes of the calculation in paragraph (1)(D) of section 4968(b) (determined after the application of paragraph (3) of such section).

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2024.

December 24, 2024

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed