started · updated
US Treasury proposes revoking tax exemptions for schools with race-based policies
The Trump administration, through the Treasury Department and the IRS, has proposed new regulations that could revoke the federal tax-exempt status of private schools and universities that utilize race-based criteria in admissions, scholarships, or other student programs. The proposal aims to target diversity, equity, and inclusion (DEI) initiatives, which officials argue constitute unlawful discrimination based on race, color, or national origin.
Treasury Secretary Scott Bessent stated that institutions cannot avoid these rules by simply rebranding race-based preferences as diversity or inclusion programs. The administration cited Supreme Court precedents, including Bob Jones University v. United States and Students for Fair Admissions v. Harvard, to support the move. The new rules would not apply to religious institutions maintaining their religious curricula, nor would they prohibit assistance based on race-neutral factors such as income, academic achievement, or military status.
If finalized, the regulations could affect up to 18,000 educational institutions, including K-12 schools, colleges, and vocational centers. The rules would apply to tax years beginning after May 31, 2027. Critics and higher education leaders have expressed concern that the move is an attack on access to education for people of color and could significantly impact school fundraising by removing the tax-deductibility of donations.
Entities
Department of Justice · Donald Trump · Internal Revenue Service · Scott Bessent · Treasury Department · Trump administration · United States · Yale University
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 20 SOURCES] The proposed rule could affect as many as 18,000 private schools, colleges, and other educational institutions. libertyunyielding.com · offthepress.com · dailycaller.com · www.polialert.com · srnnews.com · +15 more
- [● 8 SOURCES] The proposal allows private schools to maintain certain curricula and observances based on genuine religious affiliation. libertyunyielding.com · offthepress.com · dailycaller.com · www.polialert.com · srnnews.com · +3 more
- [● 20 SOURCES] The Treasury Department and the IRS are expected to roll out regulations to end federal tax-exempt status for private schools that discriminate based on race. libertyunyielding.com · offthepress.com · dailycaller.com · www.polialert.com · srnnews.com · +15 more
- [● 10 SOURCES] The IRS and Treasury cited Supreme Court precedents including Brown v. Board of Education, Bob Jones University v. United States, and Students for Fair Admissions v. Harvard. libertyunyielding.com · offthepress.com · dailycaller.com · www.polialert.com · srnnews.com · +5 more
- [● 5 SOURCES] A DOJ review found race-based discrimination in admissions at Yale University School of Medicine, George Washington University School of Medicine and Health Sciences, and Duke University School of Law libertyunyielding.com · offthepress.com · dailycaller.com · justthenews.com · www.dailysignal.com
- [● 8 SOURCES] Schools may still use race-neutral criteria for assistance, such as income, geography, hardship, military status, or academic achievement. libertyunyielding.com · offthepress.com · www.polialert.com · srnnews.com · justthenews.com · +3 more
- [● 8 SOURCES] If finalized, the new regulations would apply to tax years beginning after May 31, 2027. srnnews.com · thenationalpulse.com · wyomingtruth.org · www.dgabc.com.br · francomacorisanos.com · +3 more