Trump administration pushes to remove tax exemption for private colleges with DEI policies
The Trump administration has proposed a new regulation that would revoke the tax-exempt status of private colleges that implement diversity, equity, and inclusion (DEI) policies. The rule, which would take effect in 2027, targets programs that provide race-based assistance in admissions and scholarships.
Why it matters
This represents a significant federal effort to dismantle institutional DEI frameworks, potentially forcing a major shift in how private higher education institutions manage student support and admissions.
The Trump administration is proposing a new rule that would strip private schools and colleges of their tax-exempt status if they provide targeted help to students based on their race, a significant escalation in the White House's campaign to eradicate diversity programs directed at Black, Hispanic and other minority students.
The Treasury Department proposed the change Thursday in a new regulation that, if made final, would kick in after May 2027. The rule is broadly aimed at ending any policies or programs that help students because of their race, and it specifically says such benefits in admissions, scholarships and facilities "would be incompatible" with the rule.
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