Trump Administration Proposes Revoking Tax Exemption for Private Colleges with Race-Based DEI Policies

The Trump administration has proposed a Treasury Department regulation that would remove the tax-exempt status of private schools and colleges offering targeted assistance based on race. This initiative, intended to restore merit in education, would take effect after May 2027 if finalized. Education leaders are concerned about potential impacts on donations, scholarships, and increased compliance burdens and legal uncertainties for institutions.