AN ACT ESTABLISHING A CAPITAL GAINS TAX ON CERTAIN ENDOWMENT FUNDS OF INSTITUTIONS OF HIGHER EDUCATION AND CONCERNING THE USE OF THE REVENUE GENERATED.

Plain English Breakdown

The official source material does not provide specific figures or details on how much money will be collected or saved by this new tax.

Tax on College Endowment Funds

This act creates a tax on certain college endowments with high values and uses the money to help people pay less for family leave insurance.

What This Bill Does

• Imposes a capital gains tax on endowment funds of institutions of higher education that exceed $500,000 per student.
• Dedicates revenue from this tax to reducing what participants in the Paid Family and Medical Leave Insurance Program have to pay.

Who It Names or Affects

• Institutions of higher education with endowment funds exceeding $500,000 per student.
• People who use the Paid Family and Medical Leave Insurance Program

Terms To Know

Endowment funds

Money that colleges have saved up to help pay for things like scholarships or building new facilities.

Capital gains tax

A tax on the profit made from selling something you own, like stocks or property.

Limits and Unknowns

• The bill does not specify how much money will be collected by this new tax.
• It is unclear which specific colleges would have to pay this tax based on their endowment size.

Official Summary Text

To impose a capital gains tax on certain endowment funds of institutions of higher education and dedicate the revenue from such tax to reducing the amount that participants in the Paid Family and Medical Leave Insurance Program are required to contribute under section 31-49g of the general statutes.

Current Bill Text

LCO No. 282 1 of 1

General Assembly Proposed Bill No. 38
February Session, 2026 LCO No. 282

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. FAZIO, 36th Dist.

AN ACT ESTABLISHING A CAPITAL GAINS TAX ON CERTAIN
ENDOWMENT FUNDS OF INSTITUTIONS OF HIGHER EDUCATION
AND CONCERNING THE USE OF THE REVENUE GENERATED.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That the general statutes be amended to (1) impose a capital gains tax 1
on any endowment fund of an institution of higher education, which 2
fund is valued at a ratio of more than five hundred thousand dollars per 3
student for a taxable year, and (2) dedicate the revenue from such tax to 4
reducing the amount that participants in the Paid Family and Medical 5
Leave Insurance Program are required to contribute under section 31 -6
49g of the general statutes. 7
Statement of Purpose:
To impose a capital gains tax on certain endowment funds of
institutions of higher education and dedicate the revenue from such tax
to reducing the amount that participants in the Paid Family and Medical
Leave Insurance Program are required to contribute under section 31 -
49g of the general statutes.