Congressional Hearing Scrutinizes Ivy League Tuition and Alleged Antitrust Violations

A recent House Judiciary Subcommittee hearing has intensified scrutiny on Ivy League universities, raising concerns about rising tuition costs and potential violations of federal antitrust laws. The hearing, conducted by the Subcommittee on the Administrative State, Regulatory Reform, and Antitrust, follows an April announcement by Republican lawmakers launching an investigation into all eight Ivy League institutions, including the University of Pennsylvania.

According to the Daily Pennsylvanian, Subcommittee Chairman Rep. Scott Fitzgerald (R-Wis.) led the charge during the hearing, accusing the Ivy League of operating as a “cartel” that inflates tuition while accumulating massive endowments. Fitzgerald noted that despite six Ivy League schools holding endowments surpassing $10 billion, the cost of attendance has soared beyond $90,000 annually. He argued that these institutions prioritize “exclusivity, maximizing profits and artificially inflated prestige,” over educational access and student affordability.

The hearing featured testimony from a diverse panel of witnesses, including higher education policy experts, legal professionals, and student voices. Among them were Preston Cooper of the American Enterprise Institute, Scott Martin of the Philadelphia-based law firm Hausfeld, Brown University student journalist Alex Shieh, and Julie Margetta Morgan, president of The Century Foundation.

Read more: GOP Investigates Ivy League Over Alleged Financial Manipulation

Per the Daily Pennsylvanian, Morgan expressed concern that recent political rhetoric and actions against elite universities mirror tactics seen in authoritarian regimes. She referenced past efforts by President Donald Trump, a 1968 graduate of Wharton, to challenge elite institutions like Harvard. Morgan warned that targeting these schools under the guise of cost reform distracts from broader systemic issues in higher education. “Looking for a solution to college costs in the Ivy League is like looking for a needle in a haystack while the rest of the haystack is on fire,” she said.

Rep. Jerry Nadler (D-N.Y.), the subcommittee’s ranking member, offered a counterpoint, suggesting that federal policy choices have contributed significantly to college affordability challenges. He criticized proposed cuts to Pell Grants and student loan subsidies, arguing such measures disproportionately harm low-income students and exacerbate the very issues being raised.

The Daily Pennsylvanian reports that the Ivy League has a complicated history with federal oversight. In 1989, the U.S. Department of Justice filed an antitrust lawsuit against Ivy League schools and MIT for collaborating on financial aid formulas, resulting in settlements and a conditional congressional exemption—permitting such coordination only if schools practiced need-blind admissions.

However, that history resurfaced in 2022, when students filed a new lawsuit alleging that 16 top universities—including Penn—colluded to limit financial aid, thereby disadvantaging nearly 200,000 students and inflating costs by approximately $685 million. According to the lawsuit, Penn is one of six institutions yet to reach a settlement, and it faces potential liability of up to $2 billion.

“These elite schools still chose profit and prestige over access and fairness,” Fitzgerald said during the hearing, reaffirming his position that the institutions are not fulfilling their obligations to students or the public.

Source: Daily Pennsylvanian