The Trump administration announced Thursday that the US Treasury Department plans to strip tax-exempt status from private schools that consider race in their admissions, scholarships, or policies.
The Treasury has released proposed regulations that would prevent schools with race-based programs from qualifying for tax-exempt status. Under these rules, institutions could lose their status if race is considered in programs such as admissions, scholarships, athletics, and more.
These regulations represent a potential financial blow to hundreds and possibly thousands of educational institutions, including universities. Beyond the loss of tax-exempt status, the move threatens a valuable tax break for donations.