Private schools that use race in any form as the criterion for picking students for admissions, scholarships, and entrance into specific programs could lose their tax-exempt status under a new rule proposed by the Trump administration.
The Department of the Treasury and the Internal Revenue Service said the rule enforces President Donald Trump’s executive orders ending discrimination, according to a Treasury Department news release.
“Under President Trump, this Administration is standing up for America’s students by ensuring racial discrimination has no place in American education,” Treasury Secretary Scott Bessent said.
Bessent said schools that changed language but not racial discrimination will be in trouble.
“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature. Today’s Treasury and IRS proposed regulations establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status,” he said.
“Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status,” IRS Chief Executive Officer Frank J. Bisignano said.
“Today’s proposed regulations put institutions on notice and schools that continue to engage in racial discrimination should expect to lose that status,” he said.
Do you support this Trump administration plan?
As noted by the Associated Press, Trump has said he will end “wokeness” and “leftist indoctrination” in education.
“If the Trump admin can make this happen it would be a generational win,” journalist Auron MacIntyre posted on X.
Okay, this would be savage
If the Trump admin can make this happen it would be a generational win pic.twitter.com/P5pxQkDDBQ
— Auron MacIntyre (@AuronMacintyre) September 3, 2026
The proposed regulation says that “a private school is not described as an organization exempt from Federal income tax if it discriminates on the basis of race, color, or national or ethnic origin in administration of its educational, admissions, scholarship, athletic, or other policies, based on the fundamental public policy of the United States against such practices.”
The regulation said that the precedent developed by laws and court rulings is that “racial discrimination in education violates a fundamental public policy of the United States and that schools engaging in racial discrimination are ineligible for section 501(c)(3) status.”
The proposed regulation would not ban private schools from “maintaining a religious mission, curriculum, or program of observance, or from selecting students on the basis of religious affiliation or membership.”
“Use of a religiously based selection criterion does not become discrimination on the basis of race, color, or national or ethnic origin merely because members of the relevant religious community may also share ancestry or ethnic characteristics (so long as the selection criteria is based solely on religion and not on shared ancestry or ethnic characteristics),” the proposed regulation said.
The release said about 18,000 institutions could be impacted.
Private primary and secondary schools, colleges, universities, professional schools, and trade schools would be covered by the proposed rule.
Schools can use “race-neutral criteria such as family income, geographic location, first-generation status, individual hardship, military family status, or academic achievement when awarding admission or financial assistance,” the release said.
The regulations would take effect on May 31, 2027.
Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.
