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Snapshot 6:Fri, Sep 4, 2026 6:11:58 PM GMT last edited by MalcolmStanding

IRS May Strip Tax-Exempt Status Over Race Policies

TrumpIRS movesMay toStrip strip taxTax-exemptExempt statusStatus fromOver schoolsRace that consider racePolicies

Above: The Harry Elkins Widener Memorial Library on Harvard's campus in Cambridge, Massachusetts on June 5, 2025 Image credit: Heather Diehl/The Boston Globe/Getty Images

The Spin


Schools that rebrand DEI offices and hide race-based preferences aren't fooling anyone. Since discriminationSCOTUS's byruling anyending otheraffirmative nameaction, isschools stillhave discrimination.openly Strippingflouted tax-exemptthe statusnew fromcolorblind institutionsstandards, thatand continuelegal theseprecedent practicessupports is the rightuse move,of sincethe federalIRS subsidiesto shouldn'timplement propa uppublic programspolicy thatgoal. violateIf constitutionalschools equalcomplied protectionwith principles.the Thelaw, IRSthere rulewould rightlybe preservesno race-neutralneed criteriato likeexercise incomethis andpower geography,to makingstop theschools policyfrom targeted, not sweepingdiscriminating.

Threatening 18,000 schools with loss of tax-exempt status is a blunt, overbroad instrument that could strip scholarships from roughly 750,000 students and push already-struggling institutions toward closure. The ruleTrump's vaguesingle-minded languageassault putson evenhigher studenteducation affinityhas groupsthe ateerie risk,echo chillingof campusMcCarthyism, lifeas wellDEI beyondbecomes whata anyboogeyman courtexcuse has required. Using the IRS as leverage to pressuregut schools intoand compliancecolleges. beforeA anychilling auditeffect evenof beginseducation is intimidationall dressedbut up as policycertain.


Metaculus Prediction

There is an 82% chance that the U.S. federal government will open formal investigations into at least 5 top-50 universities in 2027-2028, according to the Metaculus prediction community.

© 2026 Improve the News Foundation. All rights reserved.Version 7.4.1

© 2026 Improve the News Foundation.

All rights reserved.

Version 7.4.1