Trump Administration Proposes Revoking Tax-Exempt Status for Private Schools with Race-Conscious Programs

The Treasury Department and IRS have proposed new regulations that would remove the federal tax-exempt status from private schools and universities that maintain programs benefiting students based on race. This move, which could affect up to 18,000 institutions, is seen as a significant escalation in the administration's efforts to reshape higher education policy and eliminate diversity, equity, and inclusion (DEI) initiatives. The proposed change would take effect for tax years beginning on or after May 31, 2027, and is subject to a public comment period.