Trump Administration Proposes Stripping Tax-Exempt Status for Private Colleges with DEI Policies

The Treasury Department has proposed a new rule that would revoke the tax-exempt status of private schools and colleges that offer targeted assistance to students based on their race. This move is part of the White House's broader campaign to eliminate diversity, equity, and inclusion (DEI) programs, with the proposed change set to take effect after May 2027. While Trump officials argue it enforces the Civil Rights Act of 1964, higher education leaders contend it will hinder access to higher education for working-class Americans and people of color.