Treasury and IRS Propose Regulations to Revoke Tax-Exempt Status for Racially Discriminatory Private Schools

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued proposed regulations aimed at revoking the federal tax-exempt status of private schools that engage in racial discrimination. This move, announced on September 3, 2026, aligns with President Trump's Executive Orders to end discrimination and restore merit-based opportunity, establishing a clear standard that schools using discriminatory practices will lose their tax benefits.