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At close · Thu, Sep 3, 2026
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Trump administration rules could strip tax exemptions from some schools

The Treasury Department’s guidance targets race-based programs and would limit eligibility for tax-exempt status for affected private schools, including those providing aid to minority students.

The U.S. Treasury Department has released new rules that would block some schools offering race-based aid or programs from qualifying for tax-exempt status, according to coverage by The New York Times.

The changes pose a risk not only for higher education institutions but also for other private schools that rely on tax-exempt status to support their operations and admissions programs.

The proposal is framed as a threat to schools that provide aid to minority students through race-based initiatives, which could face loss of federal tax benefits if their programs do not meet the new requirements.

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