MIT’s innovative research and transformative education are made possible by a robust endowment fueled by generations of people and families who’ve believed in strengthening our future.
Increased taxes on MIT’s educational endowment would directly reduce funds for financial aid and research — undercutting American families, American innovation, and American competitiveness.
Enables robust research and strong student aid
Resources from our endowment and other investments provide more than 40% of our annual budget and enable both robust research and strong student aid.
For example, the endowment enables MIT to co-invest, nearly 1-to-1, the $800 million our labs receive annually in external research grants.
Free tuition for most American families
MIT’s endowment allows us to offer free tuition for families earning less than $200,000, and attendance at no cost to families earning less than $100,000.
In fact, MIT is affordable and a leader on economic mobility: 60% of our undergraduates receive financial aid from MIT; nearly 40% of our undergraduates attend completely tuition-free; and MIT is ranked #1 by the Wall Street Journal for graduates’ starting salaries and is first for economic mobility.
Contributions to American innovation
MIT has an unparalleled history of contributions to American innovation: Over the past century, MIT scientists have conducted pathbreaking and sustained work in critical fields such as radar, computing, aeronautical navigation, artificial intelligence, and fusion — plus unclassified and classified defense research and technology development that benefits national security.
Benefits the nation through military education, leadership, and service
MIT benefits the nation through military education, leadership, and service: Over 12,000 military officers have been commissioned from MIT, with more than 150 reaching the rank of general or admiral. These programs, too, are supported through the endowment.
Advances American students, innovation, and competitiveness
Cutting into our endowment with taxes would weaken all these efforts — and would undercut American students, innovation, and competitiveness. Taxing charitable endowments cuts into the impact of charitable giving and could serve to discourage future giving, multiplying the negative impact.
Bottom Line
MIT’s endowment supports research, student aid, and innovation. Taxing it would weaken these efforts and hinder future contributions.