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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.
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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