US Treasury and IRS Propose Revoking Tax-Exempt Status for Private Schools with Race-Based Policies

The U.S. Treasury and IRS have proposed regulations to revoke federal tax-exempt status for private K-12 schools, colleges, and universities that consider race in admissions or other programs. This policy, announced September 3, 2026, aims to eliminate race-based preferences in education. It could impact up to 18,000 private institutions, potentially reshaping financial structures and diversity initiatives across the private education sector.