Key facts
- The Trump administration proposed new regulations to revoke tax-exempt status for schools with race-based policies.
- The proposed rule targets admissions, educational policies, scholarships, loans, and other school-administered programs that consider race.
- Treasury Secretary Scott Bessent stated that race-based preferences remain discriminatory regardless of rebranding.
- The American Association of University Professors indicated potential legal challenges to the proposal.
- The Treasury Department estimates up to 18,000 schools and 750,000 students could be affected.
- The proposal allows for race-neutral criteria like income or geography for assisting disadvantaged students.
The Trump administration has proposed new regulations that would strip schools of their tax-exempt status if they consider race in admissions or programs. The rules, put forth by the U.S. Treasury Department and the Internal Revenue Service, are part of a broader effort to eliminate diversity programs, which officials claim discriminate against white students.
Civil rights advocates argue that diversity practices are crucial for addressing historical inequities faced by marginalized ethnic minorities. The proposal, which is subject to public comment and potential legal challenges, draws upon recent Supreme Court decisions limiting the consideration of race in college admissions. It would cover admissions, educational policies, scholarships, loans, athletics, and any other school-administered program that considers race for any purpose, including mitigating past discrimination.
Treasury Secretary Scott Bessent stated that race-based preferences remain discriminatory regardless of how they are framed. The Treasury Department estimates that up to 18,000 educational institutions and 750,000 students could be affected. The proposal would not prevent schools from maintaining religious missions or selecting students based on religious affiliation, nor would it stop them from using race-neutral criteria like income or geography to assist disadvantaged students.
The administration's actions follow a pattern of cracking down on diversity policies in higher education, which rights advocates contend threaten free speech, due process, and academic freedom. President Trump has previously targeted Harvard University with funding freezes and investigations over its diversity initiatives. The administration views this move as an effort to restore merit in education, with the Justice Department also investigating medical schools for alleged racial preferences.