Outside of the Treasury Department.
Alex Brandon/AP
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Alex Brandon/AP
The Treasury Department is proposing a new rule that would take away tax-exempt status from schools and colleges that offer any race-based preferences. It’s another escalation in the Trump administration’s efforts to reshape diversity in education.
In his announcement of the proposed regulations, Treasury Secretary Scott Bessent said, “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.”
A law in place since 1909 has excused most colleges and universities from paying certain taxes so long as they serve public interest. Now, the administration is saying that if a school shows preference towards minority students based on race, they are discriminatory and would no longer qualify for tax-exempt status.
The administration says that up to 18,000 private schools, colleges and other institutions could be affected by the rule if it becomes final and takes effect next year.
An NPR editor adapted this audio report by Jonaki Mehta.