Headline Roundup • September 3rd, 2026
Trump Admin Proposes Stripping Federal Tax Exemptions From Private Schools That Consider Race
Race And Racism,Treasury,IRS,Trump Administration,Taxes,Schools,Education,Colleges And Universities,DEI
Summary from the AllSides News Team
The Treasury Department and Internal Revenue Service (IRS) proposed regulations to end federal tax exemptions for "private schools that engage in racial discrimination" on Thursday.
The Details: According to the IRS, the rules would affect primary schools, secondary schools, colleges, and universities that discriminate based on race, color, or national or ethnic origin across any program or policy. Religious schools will retain the right to select students based on religious affiliation and maintain religious missions or observance. Institutions may still expand opportunities for disadvantaged students using race-neutral criteria, with final regulations taking effect for taxable years starting on or after May 31, 2027. The two agencies think that if implemented, the proposal could impact 18,000 institutions.
For Context: The proposal follows up on an executive order President Trump signed on his second day in office, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." In March 2025, the Trump administration launched an investigation into diversity, equity, and inclusion (DEI) programs at over 50 universities across the United States.
How The Media Covered It: The Daily Caller (Right bias) first reported the news on Wednesday night, before the federal government confirmed it on Thursday. Outlets across the spectrum framed the policy slightly differently in headlines. The Daily Caller repeated the administration's wording of "racial discrimination" in its headline, whereas The New York Times (Lean Left) described it as "aid" for "minority students." Just The News (Lean Right) described it as "race-based aid," and US News & World Report (Lean Left) said it affects schools with "DEI policies." The New York Times included perspectives from several "nonprofit experts" who were critical of the proposal.
Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.
Featured Coverage of this Story
Evelyn Hockstein/Reuters
The Trump administration has proposed stripping private schools of their tax-exempt status if they consider race, furthering the administration's intense pressure on institutions that have sought diversity in their classrooms.
The Trump administration released new rules that could revoke tax-exempt status from any school offering targeted support to Black or other minority students, a sweeping change that opens another front in the president's campaign to reshape American education.
With the Strait of Hormuz blockaded since February amid the war in Iran, tanker trucks began shipping Iraqi oil from refineries in southern Iraq and the Syrian port of Baniyas, which lies on the Mediterranean Sea.
The development comes 18 months after the fall of Bashar al-Assad, who fled after 24 years in power, the Washington Post reported. With international sanctions being lifted, the country has the potential to offer an alternative route than a waterway that's vulnerable to Middle East unrest.
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