The " University Accountability Act " proposes amendments to the Internal Revenue Code of 1986, aiming to hold certain tax-exempt educational institutions accountable for civil rights violations. Specifically, it introduces new penalties for institutions that are found by a federal court to have violated Title VI of the Civil Rights Act of 1964 . These penalties are designed to create a financial disincentive for such violations and ensure greater compliance with civil rights laws. Under the bill, a "specified tax-exempt educational institution" faces a penalty for each "determination of civil rights violation," which is defined as a civil judgment from a federal court. The applicable penalty amount would be the greater of $100,000 or 5 percent of the institution's aggregate administrative compensation for the taxable year in which the violation occurred. This financial liability is triggered on the date of the judgment, with provisions for refunds if the determination is later vacated or reversed. Beyond financial penalties, the legislation mandates a mandatory review of exempt status for institutions with repeated violations. If an institution incurs a third or subsequent civil rights violation determination, the Secretary of the Treasury must conduct a review to ascertain if it still qualifies for tax exemption. Furthermore, the bill requires these institutions to report comprehensive details of all civil rights violation determinations, including any reversals, on their annual tax returns to the IRS, ensuring transparency and oversight.