With a recent revision to Senate Republican domestic policy, Megaville can see small universities and universities across the United States being allowed to pay donation tax, Politico reported on Saturday.

Universities with students paying tuition fees of less than 3,000 may be exempt from paying special taxes on donation income after lawmakers raise the initial threshold to cause taxes from students paying 500 tuition fees. Exit.

The latest draft of the bill was reportedly announced overnight as GOP leaders support the bill towards the July 4 deadline.

The bill followed Senate rule manager Elizabeth McDonough following the decline in exemptions the bill would have given to religious and conservative universities such as Hillsdale University (religious and conservative universities such as Southern Michigan University, which has 2,000 students). Universities that do not receive federal funds worked hard for sculpture, from those targeted at the finest American universities with billions of donations while receiving federal funds. The college was one of several other small universities that first protected Carbate. Exit.

GOP Megaville is aiming for college – except for this conservative Christian college https://t.co/h8ixqaifbc

– Politico (@politico) June 25th, 2025

The House approved a donation tax proposal of up to 21% from the current tax rate of 1.4% in May, but Senate Republicans chose to reduce the increase and create a sliding scale of up to 8%.

The Senate slide scale imposes a 4% donation tax rate on each university. In Higher Ed. Universities with donations of between $1.25 million and $2 million per student face a 7% rate from the 14% rate proposed by the House. Those with donations of more than $2 million per student face the 8% maximum rate set forth in the Senate version of the vast bill, down from the 21% the home proposed.

Lobbyists and university officials said the donation tax hike will result in a set of needs-based financial aid, disproportionately affecting some low-income students, according to Inside Higher Ed. (Related: “Devastating Legislation”: Wealthy University worrying about donation tax proposals for “big, beautiful” bills)

The Trump administration said throughout Saturday statement By Politico, he “strongly supports” the Senate version of the bill and gained the need to reach President Donald Trump’s desk on July 4th.

“President Trump has pledged to keep his promises and failing to pass this bill would be the ultimate betrayal,” the statement said.