Nice find! I was searching for "indirect" / "overhead" to no avail. A bit perplexing too. The part about IRS section 4968 (link below) also limits this to: 1. Private colleges/unis 2. Endowment of $500K+ per student 3. Has 3,000+ students So targeting Harvard, Columbia, Stanford, etc.
Yup... as noted by a commenter, but this is not yet final and seems like one of many issues to be sorted out.
And looks like that provision was also in the FY25 House version too (docs.house.gov/meetings/AP/...). Not sure what press attention it got last year. Likely overshadowed by proposed NIH restructuring back then.