This week, the U.S. House and Senate passed a tax bill, which, when it becomes law, will dramatically revise our nation鈥檚 tax code. The bill does not contain some of the most for higher education that I have written about previously, but聽does include some provisions that make it harder for colleges and universities to provide the teaching and learning that students seek and our economy demands. More broadly, it makes sweeping changes to the tax code that 鈥� through impacts on the federal deficit and state budgets 鈥斅� may affect higher education, and our whole economy, in ways that could create further barriers to low- and moderate-income students seeking the economic mobility that higher education enables.
The final language of the bill preserves the income exclusion for graduate tuition waivers. My heartfelt thanks to the thousands of students, educators and friends who called, wrote and marched on behalf of not taxing these waivers, which make graduate school possible for so many and that advance the teaching and discovery so essential to our nation鈥檚 health and prosperity. The bill also preserves the student loan interest deduction, as well as IRS section 127, which allows employers to offer employees up to $5,250 in educational assistance each year. Thank you to everyone who advocated to maintain these proven policies that benefit individuals, businesses and our nation overall.
The bill, however, still contains provisions that hurt universities and the students and states we serve. It eliminates an important debt-refinancing tool, known as 鈥渁dvance refunding鈥� that the 91探花 has used to save on interest payments on bonds 鈥� savings that benefited students and lowered administrative costs. Just like a family鈥檚 ability to refinance a mortgage, the ability to flexibly manage debt is crucial to our ability to control costs while modernizing campus facilities. This bill eliminates that option. It also eliminates the deductibility of certain donations to college athletic programs, donations that support student-athletes as they pursue their education. And by reducing the number of taxpayers who itemize their deductions, it may have an effect on charitable contributions to the 91探花and other non-profit organizations.
As always, you can keep up with federal legislation affecting higher education . We will continue to monitor policies and proposals that affect our core mission of serving our students, state and society, including the reauthorization of the . And we will continue to stand up 鈥� and speak up 鈥� for policies that advance learning, discovery, innovation and prosperity for the people of Washington and our nation.