Trump administration targets tax breaks for private schools

The Center Square ^ | 09/06/2026 | Esther Wickham

[thegagline]

The Trump administration is proposing to remove the federal tax-exempt status of private schools that use race-based admission or diversity, equity and inclusion in certain school policies and programs

The proposed regulation by the U.S. Department of the Treasury and the Internal Revenue Service would cover admissions, scholarships and loans, athletics, educational policies and other programs administered or supported by private schools.

While the regulation is still open to public comment, if finalized, it would apply beginning on May 31, 2027.

The regulation would apply to tax-exempt private elementary and secondary schools, colleges, universities, professional schools and trade schools. The Treasury Department and Internal Revenue Service estimate as many as 18,000 private educational institutions could be affected.

Under the Trump administration proposal, private schools would not qualify for federal tax-exempt status under Section 501(c)(3) if they adopt or enforce a policy that discriminates based on race and color.

“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature," Treasury Secretary Scott Bessent saidin a statement.

The proposal will “establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status," Bessent said.

***higher education leaders criticize the proposal, saying it could affect programs designed to expand access to college for students from historically underrepresented groups.

"The administration's latest rule changes are its most blatant attack to keep working-class Americans and people of color from accessing higher education and a better life," Mike Gavin, Alliance for Higher Education president and CEO, said in a statement. "By claiming that efforts to increase fair opportunity for all students are discriminatory, the administration is trying to gaslight the American people into believing that up is down and black is white.”

***

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TOPICS: Constitution/Conservatism; News/Current Events
KEYWORDS: antisemite; austinliberal; jewhater; preferences; racismequityracism

[thegagline]

*** “…the administration is trying to gaslight the American people into believing that up is down and black is white.”

An odd choice of words from the head of an organization whose entire project depends on treating “black” and “white” as anything but interchangeable—explicitly promoting blacks while discriminating against whites.

[Responsibility2nd]

I guess the same haters who complained about the child care subsidies for stay at home parents will soon be here to criticize this tax break.

[Miami Rebel]

There are tens of thousands of private schools in our country.

Who is going to enforce this mandate?

It seems like we’d need a vast network of agents to oversee admissions.

[17th Miss Regt]

The Trump administration is proposing to remove the federal tax-exempt status of private schools that use race-based admission or diversity, equity and inclusion...

Eliminating race-based admission or diversity, equity and inclusion criteria would have the (intended) effect of placing Black people back in chains and slavery. The NY Times said so and they got that from an authoritative source, the Atlanta Black Star.

[Wallace T.]

This proposed ruling will not affect almost all Catholic or Lutheran parochial schools or evangelical Christian private schools, which do not discriminate on the basis of race or color. It will affect private academies, particularly the elite ones such as those in the Northeast which were and are formative for the upper classes, and the vast network of private colleges that have effective quotas, labeled affirmative action, that intend to increase black and Hispanic attendance at the expense of whites and Asians.

If the rule takes effect, count on a long litigation battle where the education establishment will find a friendly Federal district court in a liberal leaning circuit that will delay implementation. The educrats may count on running down the clock in the hope of a friendlier (Democratic) administration taking the White House in 2029.

[Wallace T.]

This proposed ruling will not affect almost all Catholic or Lutheran parochial schools or evangelical Christian private schools, which do not discriminate on the basis of race or color. It will affect private academies, particularly the elite ones such as those in the Northeast which were and are formative for the upper classes, and the vast network of private colleges that have effective quotas, labeled affirmative action, that intend to increase black and Hispanic attendance at the expense of whites and Asians.

If the rule takes effect, count on a long litigation battle where the education establishment will find a friendly Federal district court in a liberal leaning circuit that will delay implementation. The educrats may count on running down the clock in the hope of a friendlier (Democratic) administration taking the White House in 2029.

[lastchance]

“Under the Trump administration proposal, private schools would not qualify for federal tax-exempt status under Section 501(c)(3) if they adopt or enforce a policy that discriminates based on race and color.”

Isn’t such a policy simply shoring up what is already the law prohibiting discrimination based on the same?

[lastchance]

I think this is simply putting recent SCOTUS rulings into policy.

[lastchance]

The section sited applies to any charity seeking tax exempt status.

[Sam Gamgee]

Yes sounds a little insane this move.

[millenial4freedom]

The Trump administration is proposing to remove the federal tax-exempt status of private schools that use race-based admission or diversity, equity and inclusion in certain school policies and programs

Effectively, this is about 99.9% of all 'private' schools/universities in this country...
I hope the right is aware just how ubiquitous these racist practices really are.

[Miami Rebel]

“This proposed ruling will not affect almost all Catholic or Lutheran parochial schools or evangelical Christian private schools....”

Quite so, but wouldn’t it be necessary to assess ALL schools receiving preferential tax treatment?

[millenial4freedom]

the College Board administers the application template for the prospective student, who then submits it to the university.

It would be wise, imo, for the administration to go after the College Board and simply have the application become much more anonymized

For example, assign each applicant a random ID, remove first and last name, remove questions pertaining to race/religion...just grades and test scores (and maybe extracurricular activities)

[Wallace T.]

wouldn't it be necessary to assess ALL schools receiving preferential tax treatment?

Yes. The IRS would have to determine if any non-government school or college has any programs that discriminate on the basis of race, religion, or national origin. Any school or college, irrespective of whether secular or religious, would have to apply the same admissions criteria for all applicants to receive an income tax exemption.