House Hearing Examines Allegations of Anticompetitive Behavior by Elite Universities

The House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust held a hearing focused on “the elite universities cartel” and allegations that such institutions have a history of colluding on pricing that has resulted in inflating the cost of higher education.

In what was largely a partisan affair, Republican members and their witnesses cited the selectivity, large endowments, small class sizes, administrative bloat, and the now-expired anti-trust exemption for financial aid at Ivy League and other elite institutions as evidence of anticompetitive behavior. According to Republicans on the subcommittee, such institutions prioritize profit and prestige over access and affordability, and these anticompetitive practices have a trickle-down effect that allows other colleges and universities to also raise prices.

In contrast, Democrats on the subcommittee accused their Republican colleagues of being disingenuous, citing the student aid funding cuts in the proposed reconciliation legislation as evidence that the hearing was part of a targeted attack on higher education rather than a genuine expression of concern over access and affordability. Democrats also noted that while concerns about affordability and debt are real, elite institutions are not representative of the higher education sector.

For more information, please contact:
Jody Feder