In July 2025, the U.S. administration passed H.R. 1 — the One Big Beautiful Bill Act, which significantly increased the federal endowment excise tax for many colleges and universities — but included a key exemption for smaller institutions such as Colorado College, by excluding from taxation those with no more than 3,000 tuition-paying students, regardless of their per-student endowment value.

With fewer than 3,000 tuition-paying students, CC does not meet the eligibility threshold.

This exemption is critical. Gains from CC's endowment comprise nearly 20% of our annual operating budget in the form of the endowment payout — 40 percent of which supports students directly in the form of financial aid. These funds are essential to our ability to meet the full demonstrated financial need of all admitted students, a commitment shared by only 84 colleges and universities nationwide.

While Colorado College is no longer subject to the excise tax, changes are still being contemplated, and other federal proposals could still eliminate our ability to issue tax-exempt debt (bonds that usually carry lower interest rates and more favorable terms for borrowers, reducing overall borrowing costs). This would significantly impact development of key infrastructure at the College, including the planned new science building.