Trump administration pushes to remove tax exemption for private colleges with DEI policies

The Trump administration has proposed a new rule that would revoke the tax-exempt status of private colleges and universities that implement programs providing targeted assistance to students based on race. This policy shift represents a significant escalation in the administration's efforts to challenge diversity, equity, and inclusion (DEI) initiatives within higher education institutions.

Under the proposed regulation, institutions maintaining programs specifically designed to support racial minority students would face the loss of their tax-exempt standing. The move targets the financial foundations of private schools that utilize race-based criteria in their student support services.