The Trump administration is hitting private schools where it hurts the most: their tax-exempt status. A new rule proposed by the Internal Revenue Service (IRS) on Thursday would strip private schools at all levels of education of tax-exempt status for using racial preference policies like diversity, equity, and inclusion (DEI).
The Treasury Department estimates that the new rule could affect the statuses of 18,000 private elementary, secondary, and post-secondary institutions, including colleges, universities, and trade and professional schools. Once finalized, the rule would take effect May 31, 2027.
