policy10 days ago
Treasury Proposes Stripping Tax Exemptions from Schools Using Race-Based Criteria
The U.S. Treasury and IRS have proposed regulations that would revoke the 501(c)(3) tax-exempt status of private schools and universities that use race, color, or national origin in admissions, scholarships, or other programs. This move follows the Supreme Court's 2023 ruling against race-conscious admissions and aims to enforce a strict nondiscrimination standard. While the rules are stringent, they remain vague, causing uncertainty among institutions about what practices, such as Black History Month, might trigger penalties. If finalized, the changes could affect up to 18,000 institutions and 750,000 scholarships, potentially forcing schools to replace race-based criteria with race-neutral alternatives like income or geographic location.
