Trump administration seeks to strip private schools’ tax exemption status if they consider race
The proposal would affect as many as 18,000 private schools and colleges, and it would preserve race-neutral aid for disadvantaged students.
- On Thursday, The Treasury Department proposed rules to revoke tax-exempt status for private schools with racially discriminatory policies, enforcing what officials frame as a "fundamental public policy" against discrimination.
- The administration cites a 1983 Supreme Court ruling involving Bob Jones University and the 2023 Fair Admissions decision against Harvard, replacing "outdated" IRS guidance that previously allowed race-conscious preferences in admissions and programs.
- Treasury officials estimate the proposal may affect 18,000 private educational institutions, from K-12 to universities, potentially hindering fundraising as donors would lose tax-deduction eligibility for contributions.
- IRS Chief Executive Officer Frank Bisignano confirmed institutions promoting discriminatory practices will lose tax-exempt benefits starting May 31, 2027, providing time for schools to update policies.
- Critics argue the policy targets diversity initiatives, and one tax-law scholar warned, "It potentially gives the IRS a weapon to use to chill speech or try to leverage behavior at schools," predicting lengthy court fights.
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223 Articles
IRS, US Treasury Department propose revoking tax exemptions from private schools that use racial preferences
The proposed rule would cover admissions, scholarships, athletics and other school programs but allow faith-based schools to continue to select students based on religious affiliation.
POLITICS: Treasury Proposes Rule to Strip Tax-Exempt Status From Schools With Race-Based Programs – The Beltway Report
The Treasury Department and IRS proposed new regulations Thursday that would revoke tax-exempt status from private schools and colleges that use race in admissions, scholarships or other school-run programs, extending the Trump administration’s campaign against diversity initiatives in education. The proposed rules target what administration officials describe as discrimination against white students in favor of students of color. Treasury Secre…
Private Schools To Lose Tax-Exempt Status Over Racial Discrimination
The Department of the Treasury and the Internal Revenue Service (IRS) have issued proposed regulations to end federal tax-exempt status for private schools that engage in racial discrimination. "Under President Trump, this Administration is standing up for America's students by ensuring racial discrimination has no place in American education," said Treasury Secretary Scott Bessent. "Schools re
Trump Administration Aims To Strip Tax Status Of Private Schools With DEI Policies
Kamehameha and other Hawaiʻi schools are tracking the proposal, which would remove the tax-exempt status of private schools and colleges that provide scholarships or admission benefits to students based on their race.
Diversity policies that take race into account in the selection of students may have fiscal consequences for private educational institutions in the United States
Treasury Proposes Rule to Strip Tax-Exempt Status From Schools With Race-Based Programs
The Treasury Department and IRS proposed a rule Thursday that would strip tax-exempt status from private schools and colleges using race in admissions, scholarships or other programs, a move Treasury estimates could affect 18,000 schools and 750,000 students.
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