Overview
Title
To amend the Internal Revenue Code of 1986 to provide for collegiate housing and infrastructure grants.
ELI5 AI
The bill wants to let groups give money to help build or fix places where college students live without losing special tax benefits, but it must be used like regular dorms and not mostly for gyms.
Summary AI
The bill H. R. 2355, also known as the "Collegiate Housing and Infrastructure Act of 2025," proposes changes to the Internal Revenue Code of 1986. It aims to allow charitable organizations to provide grants for building and improving housing and infrastructure for college students without losing their tax-exempt status. These grants can be used for housing and related facilities, provided they align with what a college dorm might offer and do not primarily fund physical fitness centers. The changes would apply to grants made in tax years that end after the bill becomes law.
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AnalysisAI
General Summary of the Bill
H.R. 2355, known as the “Collegiate Housing and Infrastructure Act of 2025,” proposes an amendment to the Internal Revenue Code of 1986. This amendment would permit charitable organizations to make grants for the improvement or maintenance of collegiate housing and infrastructure. Such grants will not affect the organizations' tax-exempt status, provided they align with typical residential facilities' purposes at colleges or universities. There is a notable exception that these grants cannot be used to fund physical fitness facilities.
Summary of Significant Issues
One significant issue with the bill is the absence of defined limits or criteria regarding the amount and frequency of the grants. This lack of specifics may lead to financial mismanagement and unchecked expenditure. Another area of concern is the term "incidental social, recreational, or private purposes," which is vaguely defined and open to interpretation. This ambiguity could result in grants being utilized for activities not directly related to educational or charitable objectives.
Additionally, the rationale behind excluding physical fitness facilities from funding is unclear, raising potential legal or operational questions. The bill also does not outline necessary safeguards to ensure that the funds are used appropriately, which could lead to oversight and accountability issues. Lastly, there is a possibility that such grants could benefit specific organizations disproportionately, particularly those affiliated with more exclusive institutions. This could lead to ethical concerns regarding fairness and favoritism.
Impact on the Public
The proposed legislation could broadly impact the public by increasing the availability of funds for improving collegiate housing. If implemented effectively, it could enhance living facilities for college students, contributing positively to their residential experience and overall well-being. However, the lack of oversight and clear guidelines presents the risk of misappropriation of funds, potentially leading to financial scandals affecting public trust.
Impact on Specific Stakeholders
For charitable organizations, this bill could provide more opportunities to contribute to educational environments without the risk of losing tax-exempt status. However, without clear guidelines, organizations could face challenges in ensuring their grants are applied correctly and ethically, potentially exposing them to legal or reputational risks.
Collegiate institutions, especially those associated with larger or more exclusive networks, might benefit disproportionately, enhancing their infrastructure and attractiveness to prospective students. Conversely, smaller or less privileged institutions might not access these benefits equally, leading to inequity within the education sector.
In summary, while the Collegiate Housing and Infrastructure Act of 2025 aims to facilitate improvements in student living conditions through charitable contributions, careful consideration and additional legislative refinement are needed to address the outlined issues and ensure a fair, transparent, and effective implementation of its provisions.
Issues
The bill does not specify any limit or criteria for the amount or frequency of collegiate housing and infrastructure grants, potentially leading to unchecked spending and financial mismanagement. (Section 2)
The term 'incidental social, recreational, or private purposes' is vague and subject to broad interpretation, possibly resulting in the misuse of grants by applying them to activities not directly related to educational or charitable purposes. (Section 2)
The exclusion of grants for 'physical fitness facilities' is unclear in intent, lacking justification or clarification, which may lead to legal or operational ambiguities. (Section 2)
There is a lack of safeguards outlined in the bill to ensure that the collegiate housing and infrastructure grants are used appropriately and as intended, raising concerns about oversight and accountability. (Section 2)
The grants may disproportionately benefit specific organizations, especially if they are organized under subsection (c)(7) but affiliated with exclusive or niche institutions, which could lead to ethical concerns of inequity or favoritism. (Section 2)
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill specifies its short title, stating that it may be referred to as the “Collegiate Housing and Infrastructure Act of 2025.”
2. Charitable organizations permitted to make collegiate housing and infrastructure grants Read Opens in new tab
Summary AI
The bill amends the Internal Revenue Code to allow charitable organizations to make grants for improving or maintaining college housing and infrastructure without losing their tax-exempt status. These grants can be used for purposes aligned with typical college dorms, except they cannot be used for fitness facilities.