Treasury Department Proposes Ending Tax-Exempt Status for Schools with Race-Based Policies

The Trump administration, through the Treasury Department and IRS, has proposed new regulations that would revoke the tax-exempt status of private schools and colleges that consider race in their admissions, scholarships, or other policies. This initiative is part of a broader effort to eliminate diversity, equity, and inclusion (DEI) policies. The rule could impact up to 18,000 educational institutions after May 2027, potentially reshaping financial structures and policy considerations for many private educational entities.