Treasury rule on race-based school benefits would take effect after May 2027
The Treasury Department proposed a rule Thursday that would strip private schools and colleges of their federal tax-exempt status if they provide targeted help to students based on their race.
The proposal is the latest in a series of Trump administration efforts to end policies that help students based on their race. Administration officials have described the effort as targeting diversity programs directed at Black, Hispanic and other minority students.
If made final, the rule would take effect after May 2027. It broadly targets school 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.
Diversity, equity and inclusion policies had become common in education before President Donald Trump returned to the White House. Trump officials have invoked civil-rights-era laws to argue that race-targeted programs discriminate against white and Asian American students.