Trump Administration Targets Race-Based Discrimination With New IRS Crackdown on Private Schools
3rd September 2026
The Trump administration plans to end tax-exempt status for private schools that engage in any type of race-based discrimination or race-based admissions.
The Treasury Department and the Internal Revenue Service will issue the proposed regulation Thursday to restore merit.
“Under President Trump, this Administration is standing up for America’s students by ensuring racial discrimination has no place in American education,” Treasury Secretary Scott Bessent told the Daily Caller. “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.”
Bessent added the proposed regulations “establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.”
The proposed regulation will “put institutions on notice,” said IRS Chief Executive Officer Frank J. Bisignano.