The Trump administration has proposed new regulations that would revoke the tax-exempt status of private schools and colleges that use race in admissions, scholarships, or other school-administered programs. The rules, put forth by the Treasury Department and the Internal Revenue Service, are the latest federal effort to curb diversity initiatives in education.
Administration officials stated that the rules are intended to end practices they argue discriminate against white students in favor of students of color. "Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature," Treasury Secretary Scott Bessent said in a statement. This proposal follows the Supreme Court's 2023 decision in Students for Fair Admissions, which prohibited most race-conscious admissions policies at higher education institutions.
The proposed rules would encompass admissions, educational policies, scholarships, loans, athletics, and "every other school-administered or school-supported program" that considers race, color, or national or ethnic origin for any purpose, including efforts to address past racial discrimination. The Treasury Department estimated that these rules could affect up to 18,000 schools and approximately 750,000 students who might qualify for race-based scholarships.
According to the Treasury, the proposal would not prevent private schools from maintaining religious missions, curricula, or programs, nor would it prohibit them from selecting students based on religious affiliation. It also would not bar schools from assisting disadvantaged students through race-neutral criteria such as income, geographic location, or first-generation status.
The proposal is subject to a public comment period and is expected to face legal challenges. The American Association of University Professors, which advocates for academic freedom, indicated it is considering legal action, with its president, Todd Wolfson, stating, "This is not neutral enforcement of civil-rights law. It is an affirmative attempt to turn civil-rights law against the very people it was enacted to protect."
The administration has pursued the elimination of diversity, equity, and inclusion (DEI) policies in K-12 and higher education since President Donald Trump returned to the White House in January 2025. Beyond DEI, the administration has targeted educational institutions regarding race-based admissions, scholarships, and alleged antisemitism on campuses. Trump has specifically focused on Harvard University, initiating federal funding cuts, investigations, and threats to its tax-exempt status.