Trump administration targeting private college tax-exempt status
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Trump administration proposes stripping tax-exempt status from schools using race-based programs
Treasury Secretary Scott Bessent said that schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.
The American Association of University Professors said it is considering legal action against the proposal.
The proposed rules were issued by the Treasury Department and the Internal Revenue Service.
Trump administration targets tax-exempt status of private colleges
IRS CEO Frank Bisignano said private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status.
The U.S. Treasury Department and the IRS issued proposed regulations to end federal tax-exempt status for private schools that use race to influence admissions or student aid.
The proposed regulations, if finalized, would apply to taxable years beginning on or after May 31, 2027.