The Trump administration proposed Thursday a new rule that would strip private schools and colleges of their tax-exempt status if they provide targeted assistance to students based on race. This measure, which would take effect after May 2027 if adopted, could affect up to 18,000 private educational institutions. The Treasury Department and IRS say the regulation is necessary to end diversity, equity and inclusion (DEI) policies that the administration says discriminate against white and Asian American students. Higher education leaders strongly criticized the proposal, calling it an attack to prevent working-class Americans and people of color from accessing higher education. The most notable legal precedent is Bob Jones University, which lost its tax-exempt status in the 1970s for banning interracial dating on campus.
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