U.S. Private Colleges Risk Tax-Exempt Status Over Race-Based DEI Policies

The Trump administration, through the Treasury Department, has proposed a new regulation that could revoke the tax-exempt status of private schools and colleges if they provide targeted assistance to students based on their race. This proposal is seen as a significant escalation in the campaign against diversity, equity, and inclusion (DEI) programs, specifically targeting benefits in admissions, scholarships, and facilities. If finalized, the rule would take effect after May 2027 and could impact up to 18,000 institutions.