IRS Moves To Strip School Tax Breaks For DEI
Summary
The IRS and Treasury Department proposed new rules that could take away tax breaks from private schools that use race-based admissions or scholarship programs. The rules would treat any race-based policies as discrimination, even if meant to promote diversity or correct past unfairness.Key Facts
- Private schools using race-based practices might lose their 501(c)(3) tax-exempt status.
- The 501(c)(3) status means schools don’t pay federal income tax and donors can deduct their contributions.
- The rules cover admissions, scholarships, athletics, and other programs run by schools.
- The proposal removes existing IRS guidance that allows some race-based preferences to help minorities.
- About 18,000 private schools and 750,000 students could be affected.
- Schools can still offer help based on income, location, hardship, military family status, academics, or religion.
- The proposal was announced in September 2024 with public comments due by November 3.
- These changes are part of President Donald Trump’s broader effort since January 2025 to roll back diversity, equity, and inclusion policies in government and education.
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