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Trump Admin Proposes Stripping Tax-Exempt Status from Race-Based Schools
Confirmed
In Short: The Trump administration has proposed regulations to revoke tax-exempt status from private schools promoting diversity and inclusion, citing racial discrimination.

Treasury Secretary Scott Bessent stated that schools rebranding race-based preferences as equitable or inclusive does not change their discriminatory nature, according to Fox News and The Daily Pennsylvanian.
The proposal, announced by the Treasury Department, would not prohibit schools from using race-neutral criteria such as income, geography, or first-generation status to help disadvantaged students, as reported by Fox News.
The administration has also taken action against commercial driving schools, shutting down 110 schools connected to over 5,000 truck drivers who failed English language proficiency tests, and issuing notices to another 160 schools for issues including unlicensed instructors and inadequate training space, as reported by the Los Angeles Times and the Federal Motor Carrier Safety Administration.
The Internal Revenue Service and Treasury Department have proposed regulations to strip tax-exempt status from private schools engaging in racial discrimination, promoting diversity, equity, and inclusion practices, according to Bond Buyer.
Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status, said IRS Chief Executive Officer Frank Bisignano, as reported by Bond Buyer.
What's confirmed
What's still developing
- Inside the dismantling of Penn’s last major DEI holdout Penn strips central DEI website as ‘review’ of programs begins “Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’” Trump — who graduated from The Wharton School in 1968 — wrote in an April social media post.
