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
The Treasury estimated the proposed rules could impact as many as 18,000 schools and 750,000 students.
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.
Trump administration targets tax-exempt status of private colleges
The proposed regulations, if finalized, would apply to taxable years beginning on or after May 31, 2027.
A tax law passed last year by Republican lawmakers included a new charitable deduction worth up to $1,000 for single tax filers or $2,000 for married couples filing jointly.
The IRS and Treasury said the financial impact of the rules may extend to 750,000 students who attend these schools and may qualify for race-based scholarships.