This bill, known as the "Protecting Endowments from Our Adversaries Act," introduces significant amendments to the Internal Revenue Code of 1986. Its primary purpose is to impose new excise taxes on certain investments held by large private colleges and universities. Specifically, these provisions target institutions that are not state-owned and possess an aggregate fair market value of non-exempt purpose assets exceeding $1,000,000,000 . The legislation establishes two distinct excise taxes. First, a 50 percent tax is levied on the fair market value of "listed investments" acquired by a specified educational institution. Second, a 100 percent tax is imposed on the net income, including gains and losses, derived from "1-year listed investments" during a taxable year. These taxes aim to disincentivize financial ties with entities identified as potential adversaries. A "listed investment" is defined as a specified interest, such as stock, debt, or derivatives, in any person or entity appearing on one or more critical government lists. These lists include the Entity List , the Military End User (MEU) List , and the Unverified List maintained by the Secretary of Commerce, as well as the FCC Covered List . The Secretary of the Treasury is mandated to establish and maintain a consolidated list of these "listed persons." The bill also clarifies that investments made through pooled funds, like exchange-traded funds, are subject to these rules, though certification procedures for compliant funds will be established.