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US administration education and tax policy changes

Updated 5 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-15 23:14 UTC → 2026-10-07 04:42 UTC · added removed

The Trump administration has introduced several regulatory changes affecting educational institutions and federal data reporting. The Treasury Department and the IRS have proposed regulations that could revoke the federal tax-exempt status of up to 18,000 private schools, colleges, and universities. These proposals target institutions that utilize race, color, or national or ethnic origin in admissions, scholarships, athletics, or other programs, arguing that such policies discriminate against white and Asian American students. Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano have framed the proposal as a measure to eliminate racial discrimination. Bessent has stated that institutions cannot avoid these rules by “simply rebranding race-based preferences as diversity or inclusion programs.” programs,” noting that such rebranding does not change their “discriminatory nature.” Citing Supreme Court precedents such as Bob Jones University v. United States and Students for Fair Admissions v. Harvard, the administration aims to target diversity, equity, and inclusion (DEI) initiatives. The proposed rules would apply to tax years beginning after May 31, 2027, and would not apply to religious institutions maintaining religious curricula or to assistance based on race-neutral factors like income or academic achievement. Under the proposed standards, any policy intended to promote diversity or remedy past discrimination through race-based treatment would be classified as discrimination. This would eliminate existing IRS guidance that allows certain preferences for minority groups to advance nondiscriminatory policies. Critics, including EdTrust CEO Denise Forte, have characterized the move as federal overreach, arguing that addressing racial inequity is necessary to remove barriers to opportunity. overreach. Experts note that the loss of tax-exempt status would eliminate charitable tax deductions for donations, potentially reducing philanthropic giving and impacting scholarships for an estimated 750,000 students. Simultaneously, the administration has altered federal education oversight by updating the U.S. Department of Education’s Civil Rights Data Collection following an executive order defining sex as strictly male or female.

Versions

  1. 2026-10-07 04:42 UTC US administration education and tax policy changes
  2. 2026-09-15 23:14 UTC US administration education and tax policy changes
  3. 2026-09-07 12:11 UTC US administration education and tax policy changes
  4. 2026-09-06 04:10 UTC US administration education and tax policy changes
  5. 2026-09-05 14:19 UTC US administration education and tax policy changes
  6. 2026-09-04 17:59 UTC US administration education and tax policy changes

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