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Supreme Court ruling involving Bob Jones University and the 2023 Fair Admissions decision against Harvard, replacing "outdated" IRS guidance that previously allowed race-conscious preferences in admissions and programs.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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13 Articles
Treasury moves to cut tax-exemptions for schools with DEI policies
The Department of the Treasury proposed regulations that would strip federal tax-exempt status from private schools that engage in racial discrimination through diversity, equity, and inclusion policies. The proposal comes as the Trump administration has worked to eliminate DEI initiatives across the federal government and in institutions receiving federal support. Treasury Secretary Scott Bessent praised […]
Trump Moves to Pull Schools' Tax-Exempt Status Over DEI
Tax policy is emerging as the Trump administration's newest lever in the fight over race and education. The Treasury Department on Thursday proposed rules that would allow the IRS to pull tax-exempt status from any school—from K-12 to universities—that it deems to have racially discriminatory policies, including admissions...
Treasury, IRS Move to End Tax-Exempt Status for Discriminatory Practices in Private Schools - FINCHANNEL
WASHINGTON – 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, delivering on President Trump’s Executive Orders ending discrimination and restoring merit-based opportunity. “Under President Trump, this Administration is standing up for America’s students by ensuring […]
Trump Administration targets racial discrimination in private schools; proposes ending tax-exempt status for violators
Treasury Secretary Scott Bessent that schools cannot avoid the restrictions by describing race-based preferences as “equitable,” “inclusive” or “diversity-enhancing.”
WH May Revoke Tax-Exempt Status Of “DEI” Schools
The New York Times reports: The Trump administration released new rules that could revoke tax-exempt status from any school offering targeted support to Black or other minority students, a sweeping change that opens another front in the president’s campaign to reshape American education. The proposed regulations, which the Treasury Department published on Thursday, would add … The post WH May Revoke Tax-Exempt Status Of “DEI” Schools appeared fi…
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