Trump Administration Proposes Revoking Tax-Exempt Status for Private Schools with DEI Programs

The Trump administration, through the Internal Revenue Service (IRS), has proposed a regulation that would allow the agency to strip tax-exempt status from private schools with diversity, equity, and inclusion (DEI) programs. Treasury Secretary Scott Bessent stated that 'schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.' This proposal is part of an ongoing effort to reshape higher education and stamp out DEI programs, and it is expected to face legal challenges.