Trump Administration Targets Tax-Exempt Status for Schools Using Race
The Treasury Department is coming for the non-profit status of any school that dares to look at race in its admissions process.
The Trump administration just dropped a new plan to pull the plug on tax-exempt status for any private school, college, or university that considers race in its admissions, scholarships, or general policies. Treasury Secretary Scott Bessent says schools rebranding racial preferences as "diversity-enhancing" are officially on the chopping block.
We are talking about potentially 18,000 institutions caught in the crosshairs. The administration is leaning on the logic from the old Bob Jones University case, claiming that racial discrimination in education violates public policy. The twist? Nobody can actually agree on what that public policy is.
While schools might not pay a fortune more in actual taxes, the real pain is for donors who count on those tax write-offs. It is a massive pivot, and legal battles are already brewing before the ink is even dry on the new rules.
Turning the tax code into a cudgel for culture war policy is the new normal for the IRS.
Source: Treasury Department
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