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New IRS Rule To Strip Private Schools At All Levels Of Tax-Exempt Status For Using DEI

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The Trump administration is hitting private schools where it hurts the most: their tax-exempt status. A new rule proposed by the Internal Revenue Service (IRS) on Thursday would strip private schools at all levels of education of tax-exempt status for using racial preference policies like diversity, equity, and inclusion (DEI).

The Treasury Department estimates that the new rule could affect the statuses of 18,000 private elementary, secondary, and post-secondary institutions, including colleges, universities, and trade and professional schools.

According to Treasury Secretary Scott Bessent, the move is designed to go after schools that have claimed to get rid of their DEI departments and policies, but in reality have only hidden them from public scrutiny while the Trump administration goes after racial discrimination.

“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,” he said in a statement. “Today’s Treasury and IRS 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.”

Harvard University may have........

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