Protecting Endowments from Our Adversaries Act

S 5234, the *Protecting Endowments from Our Adversaries Act*, imposes a 50% excise tax on private colleges and universities that acquire certain investments and a 100% tax on income or gains from those investments. It directly affects large private institutions with endowments exceeding $1 billion in non-exempt assets (excluding those used for their core educational purpose). The bill defines "listed investments" as holdings in entities on government threat lists (e.g., Commerce Department's Entity List or FCC's Covered List), taxing both the acquisition value and annual income from such investments. Key mechanisms require institutions to calculate taxes based on fair market value of these investments, with specific rules for pooled funds like mutual funds. The tax applies to taxable years beginning after the first calendar year following enactment or 60 days after the Secretary of the Treasury establishes the "listed persons" list.