Trump Administration Proposes Rule to Revoke Tax-Exempt Status for Colleges with DEI Policies
The Trump administration is proposing a new rule that would strip private colleges and universities of their tax-exempt status if they have diversity, equity, and inclusion (DEI) policies or offer race-based benefits to students. The proposed regulation, which aims to…
Fort Myers Naples, FL, September 3, 2026 —
A proposed regulation by the Trump administration could alter the tax-exempt status of private colleges and universities across the nation. The rule, if enacted, would permit the revocation of tax-exempt status for institutions that maintain diversity, equity, and inclusion (DEI) policies or provide benefits specifically based on race to their students.
The administration’s stated objective for this proposed regulation is to eliminate what it describes as discriminatory practices targeting white and Asian American students. This initiative aims to address policies that are perceived to disadvantage students based on their race.
The potential impact of this proposed rule is significant, with projections indicating it could affect as many as 18,000 private educational institutions. The timeline for this regulation suggests it is slated to take effect sometime after May 2027. Further details regarding the specific criteria for policy review and the process for revoking tax-exempt status were not provided in the summary.
Story summarized from the original created by AP on apnews.com, see more information here.
