Name: New Bill Requires Colleges to Divest From China
Uploaded: 2023-08-10T09:13:59.000Z
Description: Universities and non-profits across the U.S. may face a tough choice in the future.

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Universities and non-profits across the U.S. may face a tough choice in the future.

House China Committee Chairman Mike Gallagher introduced a new bill called the “DITCH Act.”

It would require U.S. tax-exempt entities to divest from Chinese companies. Otherwise, they risk losing their tax-exempt status.

Gallagher said, “Institutions that want preferential tax treatment must choose: are they committed to their professed values or of financing a genocidal communist regime?”

The bill's main goal is to prevent American taxpayers' money from inadvertently aiding the CCP and finance what Gallagher calls the "techno-totalitarian state."

Under the bill, taxable funds like foundation grants are allowed into China. But foundations cannot possess Chinese stocks and bonds.

Tax-free funds like university endowments and public pension plans, are not allowed into China.

A waiver can be granted if an organization's need to keep a specific Chinese investment is more important than the potential risks to national security.

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