For countless students, especially those from low- and middle-income backgrounds, small liberal arts colleges offer more than an education — they serve as the launchpad to a lifetime of opportunity. These institutions, here in Colorado and across the country, open doors to academic rigor, financial aid, and lifelong networks that would otherwise be out of reach.
That’s why Congress’s proposed expansion of the federal endowment tax is so troubling. This policy risks undermining the very resources that make these transformative experiences possible, threatening access and affordability at schools that depend on their endowments to support students most in need.
We both have direct small college experience and strong Colorado ties: Kyle graduated from Colorado College in Colorado Springs, and Greg is originally from Denver and returned to the area after attending DePauw University in Indiana. We both now chair the boards of trustees for our respective schools, so we know what’s at stake.
Unlike large universities, small liberal arts colleges like ours and dozens of others across the country rely on donor-funded endowments as essential financial resources. These funds directly support financial aid, faculty salaries, academic programs, and community partnerships. At institutions like Colorado College and DePauw, endowment income typically covers a larger portion of operating budgets – for some, up to 50% — compared to just 15% at larger schools.
For students, endowments support generous scholarships that enable graduates to complete their degrees with manageable levels of student loans. It means that schools are able to provide opportunities that many students — especially those from lower-income families — might never otherwise have. At Colorado College, approximately 83% of our students from Colorado receive financial aid, and 90% of all DePauw students receive some financial aid.
These scholarships are not luxuries. They are the mechanisms by which our institutions create upward mobility, develop future leaders, and build strong communities where they employ faculty and staff. They are how we educate students not just for their first jobs, but for a lifetime of learning, leading, and adapting to a rapidly changing world.
We know this because we both have lived it.
For Kyle, receiving financial aid to attend Colorado College led to a transformative experience that reshaped his future. The college’s distinctive academic environment and close-knit community nurtured intellectual growth as well as personal confidence and a lifelong sense of purpose. Crucially, it connected him to professional networks, mentors, and social capital.
For Greg, strong academic programs, small class sizes, faculty mentorship, and Division III athletics gave him the tools and confidence to thrive. Starting with foundational internships during college and continuing into a fulfilling career, he brought the value of that education back to the Denver community where he co-founded an investment firm.
The proposed endowment tax hike threatens this important educational ecosystem. It’s a tax not just on institutions but on opportunity itself. It would harm the very students federal education policy should be helping most, leading to fewer scholarships, fewer faculty positions, and fewer programs that impact college campus communities.
At a time when higher education is under enormous pressure to deliver value, accessibility, and flexibility, Congress should be supporting models that do exactly that rather than putting them at risk. Small colleges already operate more efficiently than their public counterparts — delivering lower taxpayer cost per student, higher four-year graduation rates, and better long-term earnings for graduates. These are institutions that work.
Congress is still considering this proposed tax increase, but it’s not too late to prevent this mistake. We urge Colorado’s congressional delegation and their colleagues in states across the country to protect small colleges from this tax increase. It doesn’t just hurt the schools. It hurts the students, communities, and the nation they are helping to build.
Kyle Samuel is a graduate of Colorado College in Colorado Springs and chairs the college’s Board of Trustees. Greg Sissel is a Denver resident and chairs the Board of Trustees for DePauw University in Indiana.
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