SW Houston News

Congressman Troy E. Nehls, representing Texas' 22nd district, has shared a series of tweets discussing the financial operations and tax status of private universities in America. Nehls, who has been serving in Congress since 2021, highlighted concerns regarding the tax-exempt status and income sources of these institutions.

On February 13, 2025, Congressman Nehls tweeted about the tax-exempt nature of private universities in America. He stated that these institutions "earn millions by investing the tax-deductible donations they receive from alumni" and pay no taxes on various forms of income such as tuition and fees. "Private universities may be the most tax-exempt organizations in America."

In another tweet on the same day, Nehls expressed concern over Princeton University's endowment taxes. He noted that nearly half of Princeton's income in 2022 was derived from investment income amounting to $1.7 billion. He remarked that "Princeton has become a trust fund baby." "It is easy to see why some people are so worried about the tax on Princeton’s endowment."

Additionally, Nehls pointed out discrepancies in Princeton University's revenue sources for 2022 through its 990 tax return form. The university reported $3.6 billion in total revenues but received more government grants than charitable donations—$406 million compared to $354 million respectively—raising questions about its reliance on charitable contributions which constitute less than ten percent of its income."Princeton’s 2022 990 tax return form shows that the university booked $3.6 billion in total revenues."