The Trump administration has proposed a new regulation that would revoke the tax-exempt status of private schools and colleges that provide targeted assistance to students based on race, according to an article from Yahoo News summarizing an Associated Press report. The Treasury Department’s proposed change, set to take effect after May 2027, aims to eliminate any policies or programs that offer benefits to students due to their race, explicitly stating that such advantages in admissions, scholarships, and facilities would be “incompatible” with the rule. This move represents a significant escalation in the administration’s efforts to dismantle diversity, equity, and inclusion (DEI) initiatives that have been prevalent in educational institutions, with the White House arguing that these programs discriminate against white and Asian American students.

Higher education leaders have criticized the proposal, with Mike Gavin, president and CEO of the Alliance for Higher Education, condemning it as an “attack” aimed at preventing working-class Americans and people of color from accessing higher education. The Treasury Department and IRS estimate that up to 18,000 private schools, colleges, and other educational institutions could be affected by the proposal. Treasury Secretary Scott Bessent emphasized that rebranding race-based preferences as “equitable” or “inclusive” does not alter their discriminatory nature. The administration frames the new proposal as a step toward restoring merit in the nation’s education systems, while critics argue that it could create compliance burdens and legal uncertainties for institutions already adhering to nondiscrimination rules. The Justice Department has also opened investigations into several medical schools accused of favoring Black and Hispanic students in admissions, with Trump officials asserting that such practices violate Title IV of the Civil Rights Act of 1964. Read the full article here.

This is a summary. Read the original at yahoo.com.