The idea of requiring colleges to spend a minimum proportion of their endowments has gained some political currency of late, promoted mostly by Sen. Charles Grassley, and higher education officials have suspected that the alluring notion might make it into legislative form some time in the not-too-distant future. Little did they know it would be tomorrow. . . . among the 61 amendments to the Higher Ed Act bill that lawmakers said they would seek to offer on the House floor Thursday was one, offered by Rep. Peter Welch (D-Vt.), that would require colleges, regardless of wealth, to spend at least 5 percent of their endowments each year in ways that would reduce what students pay to attend college.
Welch’s amendment had college officials in a full-fledged tizzy Tuesday.
I can see why. But after decades of supporting the intrusive regulation of every other industry, higher education is in a poor position to resist.