Trump Administration Targets Tax Breaks for Private Schools
The proposal could affect as many as 18,000 private schools, colleges and universities if finalized, Treasury and IRS officials said.
- On Wednesday, the Treasury Department and Internal Revenue Service proposed regulations to end federal tax-exempt status for private schools engaging in racial discrimination, fulfilling President Donald Trump's executive orders.
- These proposed rules cover admissions, scholarships, loans, athletics, and other educational policies across primary, secondary, and trade schools, potentially affecting as many as 18,000 private educational institutions.
- Treasury Secretary Scott Bessent said the proposal will "establish a clear standard," noting that rebranding race-based preferences does not change their discriminatory nature, disqualifying them from Section 501 status.
- Mike Gavin, Alliance for Higher Education president and CEO, characterized the administration's changes as a "blatant attack" on access for underrepresented groups, fearing negative impacts on college-expansion programs.
- If finalized, the rule would apply beginning on May 31, 2027, providing private institutions time to update their policies, though the regulation remains open to public comment.
44 Articles
44 Articles
Feds float ending tax-exempt status for private universities that have race-based policies
The U.S. Department of the Treasury and the Internal Revenue Service have formally proposed revoking tax-exempt status from private educational institutions that use race-based policies in admissions, scholarships, or other programs, arguing that they constitute discrimination. Some schools offer admission, scholarships or other assistance to historically disadvantaged groups and minorities who were locked out of […]
Davis Condemns Trump Administration’s School Tax-Exempt Push
Representative Danny K. Davis (D-IL) issued the following statement following the release of proposed regulations by the Trump Treasury Department and Internal Revenue Service to revoke the tax-exempt status of private educational institutions that it deems as discriminating based on race, color, or national or ethnic origin across wide-ranging activities, including: admissions, educational policies, scholarships […]
Trump administration targets tax breaks for private schools
(The Center Square) – The Trump administration is proposing to remove the federal tax-exempt status of private schools that use race-based admission or diversity, equity and inclusion in certain school policies and programs.
Treasury and IRS Propose Regulations to End Federal Tax-Exempt Status of Private Schools Over Discrimination
Private schools must display uniform nondiscrimination practices in order to receive benefits. The Department of the Treasury and the Internal Revenue Service (IRS) have proposed removing tax-exempt status from private…
IRS Proposes New Regulations on Nondiscrimination for Tax-Exempt Schools
In September 2025, the Internal Revenue Service (IRS), jointly with the Department of the Treasury, issued its Priority Guidance Plan (“Plan”) for the 2025-2026 fiscal year. In this Plan, the IRS signaled its intent to issue “[g]uidance on the application of the fundamental public policy against racial discrimination, including consideration of recent case law, in determining the...
New Rule Would End Tax Breaks for Private Schools That Discriminate
The Department of the Treasury and the Internal Revenue Service have issued proposed regulations that would end federal tax-exempt status for private schools that engage in racial discrimination, an action officials said delivers on President Trump’s executive orders aimed at ending discrimination and restoring merit-based opportunity. “Under President Trump, this Administration is standing up for Read more...
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