The legislation, introduced in March, specifically targets schools in Connecticut with endowments of $10 billion or more. Yale is the only such school in the state with an endowment of more than $10 billion.

Endowment income has come under increased scrutiny, as elite schools have funds that balloon ever up, year after year.

In January, a draft congressional bill grabbed the attention of America's massively endowed colleges and universities, as it proposed that schools with endowments of more than $1 billion use 25% of their annual endowment income toward student financial aid.