The Trump administration is proposing a rule that would remove tax-exempt status from some private schools and colleges if they provide “targeted” assistance to students based on race. The proposal is aimed at institutions that offer support aligned with DEI-style policies, according to reporting.
The measure is presented by the administration as a way to limit what it views as race-based preferences tied to tax benefits. ABC News and the Winnipeg Free Press both describe the proposal as targeting tax-exempt colleges and private educational institutions that use race as a factor in student support. Both outlets frame it as a regulatory change affecting how eligible schools maintain federal tax-exempt standing.
While the sources agree on the core policy direction—ending tax exemptions for some private colleges with race-targeted programs—details such as the specific criteria, scope, and implementation timeline are not included in the provided excerpts. The reporting collectively indicates the proposal is part of broader efforts to restrict race-based student assistance in federally supported areas.
