Treasury and IRS Propose Regulations to Revoke Tax-Exempt Status for Discriminatory Private Schools

The Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations on September 3, 2026, to eliminate federal tax-exempt status for private schools found to be engaging in racial discrimination. This initiative aligns with President Trump's executive orders and aims to establish a clear standard, ensuring that institutions practicing discrimination will no longer receive federal tax benefits.