The Trump administration plans to end tax-exempt status for private schools that engage in any type of race-based discrimination or race-based admissions.
The Treasury Department and the Internal Revenue Service will issue the proposed regulation Thursday to restore merit.
“Under President Trump, this Administration is standing up for America’s students by ensuring racial discrimination has no place in American education,” Treasury Secretary Scott Bessent told the Daily Caller. “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.”
Bessent added the proposed regulations “establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.”
The proposed regulation will “put institutions on notice,” said IRS Chief Executive Officer Frank J. Bisignano.
“Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status,” Bisignano told the Daily Caller.
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The Treasury Department and the Internal Revenue Service are citing Supreme Court precedents from Brown v. Board of Education, Bob Jones University v. United States, and Students for Fair Admissions v. Harvard. These cases addressed racial discrimination in education and, in the case of Bob Jones University v. United States, upheld the revocation of tax-exempt status based on racially discriminatory policies.
The Justice Department has investigated other private universities for alleged race-based discrimination practices, including Yale University School of Medicine, the George Washington University School of Medicine and Health Sciences, and Duke University School of Law..
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