It's a 2.5% excise tax on the endowment. 2.5% of $51B is about $1.2B. I'm not sure where your $5B number is coming from. As to where it goes -- state universi

It's a 2.5% excise tax on the endowment. 2.5% of $51B is about $1.2B. I'm not sure where your $5B number is coming from. As to where it goes -- state universities, as the article states. The 2023 budget over all the state universities appears to be around $1.27B, with the state government providing about $320M of that. An additional $1.2B given to the state universities can probably do a lot of good, and raise the service level (and allow for expansion as well). You seem to have misread where the funds will be directed. https://budget.digital.mass.gov/govbudget/fy23/appropriations/education/state-universities/?tab=budget-summary https://budget.digital.mass.gov/govbudget/fy23/appropriation...