Trump Targets Colleges' Tax Exemptions
Trump officials seek to revoke tax-exempt status for private schools with DEI policies.
September 3, 2026 · Updated Sep 3, 5:56pm ET
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What happened
The Treasury Department and IRSInternal Revenue Servicerevenue service of the United States federal government issued proposed regulations Thursday that would allow revocation of federal tax-exempt status for private schools and colleges that use race in admissions, scholarships, student aid or other policies. The rule targets institutions that provide race-based preferences or targeted support to minority students, including programs associated with DEI policies. If finalized, affected schools could lose nonprofit tax exemption, and donors could lose federal deductions for contributions to those institutions. Treasury Secretary Scott Bessent
Scott BessentUnited States Secretary of the Treasury said the proposal is intended to set a clear standard against racial discrimination.











