Senate nixes provision boosting conservative college after uproar

Senate nixes provision boosting conservative college after uproar
© Greg Nash

Senators agreed to nix a provision in the Senate tax bill early Saturday morning that would exempt Hillsdale College, a leading conservative college in Michigan, from an excise tax on schools with more than 500 students or large endowments.

Senators voted 52-48 to strike the provision with GOP Sens. Susan CollinsSusan Margaret CollinsOvernight Health Care: 3.6M signed up for ObamaCare in first month | Ryan pledges 'entitlement reform' next year | Dems push for more money to fight opioids Study: ObamaCare bills backed by Collins would lower premiums Right scrambles GOP budget strategy MORE (Maine), Lisa MurkowskiLisa Ann MurkowskiMcConnell names Senate GOP tax conferees Week ahead: Trump expected to shrink two national monuments GOP on verge of opening Arctic refuge to drilling MORE (Alaska), Deb FischerDebra (Deb) Strobel FischerUS trade deficit rises on record imports from China Flake, GOP senators to meet with Trump on trade Senate nixes provision boosting conservative college after uproar MORE (Neb.) and John KennedyJohn Neely KennedyMORE (La.) siding with Democrats to pass the amendment from Democratic Sen. Jeff MerkleyJeffrey (Jeff) Alan MerkleyAvalanche of Democratic senators say Franken should resign Senate nixes provision boosting conservative college after uproar Overnight Energy: Panel advances controversial Trump nominee | Ex-coal boss Blankenship to run for Senate | Dem commissioner joins energy regulator MORE (Ore.).

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The surprise move came amid an uproar over the inclusion of the exemption from excise taxes for any university that does not accept federal financial aid under Title IV of the Higher Education Act.

Though several colleges do not accept federal funding, Democrats quickly seized on the section of the tax bill, arguing that Hillsdale College would be the only school that would qualify according to the guidelines set out under the legislation.

"Hillsdale College has powerful friends, including our secretary of education, but isn't that the type of insider deal we should oppose? A vote against this amendment is a vote for an earmark, for a school for powerful friends and subsidizing education," Merkley said ahead of the vote. 

The tax earmark was expected to be a big win for a school with several connections to the Trump administration.

For example, Erik Prince, the brother of Education Secretary Betsy DeVosElizabeth (Betsy) Dee DeVosTrump considering spy network to combat 'deep state' enemies: Intercept Bharara, Yates top Twitter list of most followed new political accounts GOP higher-ed bill would eliminate Obama rule on career-prep programs MORE, graduated from Hillsdale in 1992.

Hillsdale graduates who joined the Trump administration include Josh Venable, chief of staff at the Department of Education; David Morrell, associate counsel to the president; Trump speechwriter Brittany Baldwin, and Stephen Ford, a speechwriter for Vice President Pence.

The language in the bill was sponsored by GOP Sens. Pat ToomeyPatrick (Pat) Joseph ToomeyNewly declassified memos detail extent of improper Obama-era NSA spying Overnight Tech: FCC won't fine Colbert over Trump joke | Trump budget slashes science funding | Net neutrality comment period opens Appeals court decision keeps lawsuit against NSA surveillance alive MORE (Pa.) and Ted CruzRafael (Ted) Edward CruzDebbie Wasserman Schultz marks 10 years as breast cancer survivor Foreign agent registration is no magical shield against Russian propaganda Let Trump be Trump and he'll sail through 2020 MORE (Texas). 

Toomey unsuccessfully urged his colleagues to keep the measure in the tax bill.

He argued that its inclusion in the tax plan was "not about Hillsdale College exclusively. This is a broader idea." 

"I think it's a perfectly reasonable proposition that if a college chooses to forgo the very substantial funds available to it from federal taxpayers, it's okay to say you'll be exempt from this endowment so I would urge my colleagues to vote 'no' on this amendment," he said.