Private schools could lose tax-exempt status over race-based admissions and aid |
The Trump administration has proposed Treasury regulations that would threaten the tax-exempt status of private K-12 schools, colleges, and trade schools that use race-based preferences in admissions, scholarships, financial aid, athletics, or other programs. The rules, which the Treasury Department says would affect 18,000 educational institutions, would still allow schools to consider race-neutral factors such as family income, geography, individual hardship, academic achievement, and first-generation status, as well as religious affiliation. The administration has tied the proposal to the Supreme Court’s 2023 affirmative-action ruling and its broader campaign against DEI initiatives, while critics argue the regulations go beyond the court’s decision and could discourage schools from pursuing programs aimed at addressing discrimination. The rules would take effect after May 31, 2027, and educators and advocates have 60 days to submit comments or request a public hearing.