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The Treasury Department and Internal Revenue Service (IRS) proposed rules Thursday that would revoke tax-exempt status from private schools and colleges found to consider race in admissions, scholarships or other programs, a move that could affect as many as 18,000 institutions nationwide.

The Treasury Department and Internal Revenue Service (IRS) proposed rules Thursday that would revoke tax-exempt status from private schools and colleges found to consider race in admissions, scholarships or other programs, a move that could affect as many as 18,000 institutions nationwide.

The proposed regulations, if finalized, would take effect for taxable years beginning on or after May 31, 2027. Treasury Secretary Scott Bessent said schools "rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature."

The proposed regulations, if finalized, would take effect for taxable years beginning on or after May 31, 2027. Treasury Secretary Scott Bessent said schools "rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature."

The administration cited the 1983 Supreme Court ruling in Bob Jones University v. United States — which upheld the IRS's revocation of a university's tax-exempt status over a ban on interracial relationships — as legal precedent for the new proposed regulations.

The administration cited the 1983 Supreme Court ruling in Bob Jones University v. United States — which upheld the IRS's revocation of a university's tax-exempt status over a ban on interracial relationships — as legal precedent for the new proposed regulations.

Around 750,000 students who qualify for scholarships tied to race, ethnicity or national identity could be affected by the proposal. Losing tax-exempt status would also remove donors' ability to deduct gifts to affected schools, potentially reducing fundraising.

Around 750,000 students who qualify for scholarships tied to race, ethnicity or national identity could be affected by the proposal. Losing tax-exempt status would also remove donors' ability to deduct gifts to affected schools, potentially reducing fundraising.

The American Association of University Professors said it is likely to challenge the proposed rules in court. The American Council on Education's Ted Mitchell said the group will oppose the rule during the public comment period, which is expected to last 60 days.

The American Association of University Professors said it is likely to challenge the proposed rules in court. The American Council on Education's Ted Mitchell said the group will oppose the rule during the public comment period, which is expected to last 60 days.

The proposed regulations are part of a broader administration effort to rewrite federal rules governing higher education. At least 11 new rules have been proposed at the Education Department, including one aimed at streamlining the process to cut funding for schools that violate the administration's interpretation of civil rights law.

The proposed regulations are part of a broader administration effort to rewrite federal rules governing higher education. At least 11 new rules have been proposed at the Education Department, including one aimed at streamlining the process to cut funding for schools that violate the administration's interpretation of civil rights law.

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The Treasury Department and IRS proposed rules Thursday that would revoke tax-exempt status from private schools found to consider race in admissions, scholarships or other programs, a move that could affect as many as 18,000 institutions nationwide.

The Wall Street Journal (WSJ)

The Treasury Department and IRS proposed rules Thursday that would revoke tax-exempt status from private schools found to consider race in admissions, scholarships or other programs, a move that could affect as many as 18,000 institutions nationwide.

Trump moves to strip tax-exempt status from schools that consider race

Trump moves to strip tax-exempt status from schools that consider race

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Trump moves to strip tax-exempt status from schools that consider race

Trump moves to strip tax-exempt status from schools that consider race

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