Trump Admin. Pushes to Remove Tax Exemption for Private Colleges With DEI Policies

UNITED STATES – 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 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.

Trump officials have used Civil Rights-era laws to unwind the policies, saying they discriminate against white and Asian American students.

Higher education leaders criticized the proposal.

If made final, the rule would kick in after May 2027.