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Trump Administration Proposes Tax-Exempt Status Changes for Schools Based on Race-Based Criteria

The Trump administration is proposing a rule that would revoke the tax-exempt status of schools that provide race-based advantages in admissions and financial aid. Over 18,000 schools could be affected, with the rule set to take effect for taxable years beginning on or after May 31, 2027. This proposal follows a Supreme Court ruling that prohibits the use of race in admissions processes.

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Scott Bessent

Our neutral summary

The Trump administration is proposing a rule that would revoke the tax-exempt status of schools that provide race-based advantages in admissions and financial aid. Over 18,000 schools could be affected, with the rule set to take effect for taxable years beginning on or after May 31, 2027. This proposal follows a Supreme Court ruling that prohibits the use of race in admissions processes.

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Original Headline

Trump admin targets 18K schools with race-based criteria — threatening pricey consequences

Neutral Headline

Trump Administration Proposes Tax-Exempt Status Changes for Schools Based on Race-Based Criteria