US Treasury Proposes Ending Tax Breaks for Race-Based School Programs
The US Treasury Department proposed new rules today. They could end tax-exempt status for private schools.
This applies to schools using race-based programs. That includes admissions, scholarships, athletics and facilities.
The rules could affect up to 18,000 private schools. About 750,000 students could be affected.
The estimate covers primary, secondary, college and trade schools. If finalized, the rules start for taxable years after May 31, 2027.
The Trump administration says the goal is fairness. Leaders want to enforce racial nondiscrimination.
They also want to restore merit-based opportunity. Losing tax-exempt status could raise costs for schools.
It could change donor incentives and borrowing costs. It could also add new compliance requirements.
Key Terms 2
- tax-exempt status A special status letting schools skip paying certain taxes.
- IRS The US agency that collects taxes and enforces tax rules.