What is the American Academy? Trump proposes taxing large private university endowments to pay for new institution
MIAMI, FLORIDA: Former President Donald Trump has unveiled an ambitious plan to reshape higher education in the United States.
In a recent policy video campaign, Trump declared his plans to "revolutionize" the education system by establishing a federally funded online university called the "American Academy." The primary goal is to provide cost-free degrees to every American citizen.
Trump's vision of 'American Academy'
In the video, Trump stated, "This institution will gather an entire universe of the highest quality educational content covering the full spectrum of human knowledge and skills and make that material available to every American citizen online for free."
He also emphasized, "Whether you want lectures, ancient histories or an introduction to financial accounting or training in a skilled trade. The goal will be to deliver it and get it done properly."
Trump further commented, "In recent weeks, Americans have been horrified to see students and faculty at Harvard and other once-respected universities expressing support for the savages and jihadists who attacked Israel..."
He concluded by stating, "We spend more money on higher education than any other country—and yet, they're turning our students into Communists and terrorist sympathizers of many, many different dimensions. We can’t let this happen.”
Trump intends to tax wealthy university endowments
Specifics regarding the governance and framework of the American Academy have not been finalized. Trump's campaign team has suggested that they are exploring potential private sector participation and diverse oversight models to bring this institution into existence.
Nevertheless, to put this vision into action, Trump's proposal would necessitate congressional endorsement.
He intends to finance the new educational institution by levying taxes on affluent university endowments, a strategy that has been a preference among conservatives for an extended period.
Trump referred to his 2017 tax law, which imposed a 1.4 percent tax on the investment income of the country's wealthiest private universities. In 2022, 58 institutions collectively paid $244 million in taxes as a result of this legislation.
Furthermore, Trump also discussed the potential of raising funds by imposing fines and legal action against affluent universities.
While former President Trump's proposal marks a departure from the current administration's approach, which focuses on debt relief and making college more affordable, it targets the more than 40 million Americans who have some college experience but no degree.
Trump's plan aims to provide various credentials recognized by the federal government.
“It’s a contrast with Joe Biden’s plan for free college, which is to essentially wipe out hundreds of billions of dollars of student loan debt. This is a different way,” a campaign official said, as quoted by Politico.
The official also noted, “We need to have affordable options for college without spending trillions and trillions of dollars.”
Historical context and calls for change
The concept of establishing a national American Academy has historical origins, tracing back to George Washington's proposal for such an institution in 1780.
In more recent times, some Republicans have aimed to question the conventional American higher education system, arguing that specific campuses are strongholds of progressivism that stifle conservative perspectives.
Former President Trump's proposal is part of his broader engagement with education policy.
Earlier this year, he called for new accreditation standards for colleges and universities, the removal of diversity, equity, and inclusion administrators, and a focus on "American and Western civilization" in school curriculum.
He also advocated for entrance and exit exams for students and for providing options for "accelerated and low-cost degrees" and improved career placement.
During his tenure in office, Trump's Education Department took steps to deregulate higher education, with a particular focus on online and for-profit colleges.
The objective was to decrease federal regulations that were perceived by many Republicans as hindrances to innovation in higher education.
However, these changes faced criticism from Democrats, who argued that reduced federal oversight could lead to misleading practices by educational institutions.