Trump Administration Proposes Stripping Tax-Exempt Status from Private Schools with Race-Conscious Programs

The Trump administration has proposed new regulations that would revoke the federal tax-exempt status of private schools and universities that maintain programs benefiting students based on race. This move, announced by the Treasury Department and IRS, is a significant escalation in the administration's efforts to eliminate diversity, equity, and inclusion (DEI) policies in education. The proposed rule is expected to affect up to 18,000 private educational institutions and would apply to tax years beginning after May 31, 2027.