At Grinnell, the $1.6 billion endowment provides more than half of annual operating funds. The liberal arts college in rural Iowa spends $50 million a year on financial aid and has an economically diverse student body. Federal data shows that 90 percent of its 1,700 undergraduates receive grants or scholarships. The proposed tax could siphon away at least $1.5 million a year, Grinnell President Raynard S. Kington said.

“It’s a crude instrument that’s going to have a lot of collateral damage,” he said. Kington said he has written Iowa’s congressional delegation — mostly Republicans — to urge them to drop the endowment tax.

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