Washington Update (July 2025)-Recording

Video Transcription

Video Summary

In a recent webinar, the focus was on discussing the implications of the July Washington update, specifically concerning the "One Big Beautiful Bill Act" (H.R. 1), which was signed into law. The act, resulting from a reconciliation process, extends and makes permanent numerous tax provisions from the Tax Cuts and Jobs Act of 2017. Key points discussed included various education policies affecting loans and Pell grants, as well as significant changes in tax provisions impacting schools, colleges, and universities.<br /><br />The updated bill surprisingly included a permanent charitable deduction for non-itemizers, a significant win for democratizing charitable giving. However, the introduction of a 0.5% AGI floor for itemized deductions and a possible negative impact from a corporate floor on charitable contributions were noted as concerns. Additionally, the bill includes an endowment tax hike for specific universities with large endowments and an excise tax on compensation over $1 million.<br /><br />While there were some favorable changes, such as removing the Pell eligibility changes and halting drastic tax hikes on private institutions, the bill still carries potentially negative implications for education funding and public services, like Medicaid, which could strain state budgets and indirectly affect university budgets.

Keywords

One Big Beautiful Bill Act

H.R. 1

Tax Cuts and Jobs Act

education policies

charitable deduction

endowment tax

Pell grants

AGI floor

university budgets