{"id":2654188,"date":"2026-09-03T15:18:01","date_gmt":"2026-09-03T19:18:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/utm_sourcerssutm_mediumrssutm_campaignnew-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/"},"modified":"2026-09-03T15:20:41","modified_gmt":"2026-09-03T19:20:41","slug":"utm_sourcerssutm_mediumrssutm_campaignnew-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/utm_sourcerssutm_mediumrssutm_campaignnew-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/","title":{"rendered":"IRS Rule To Strip Private Schools&#8217; Tax-Exempt Status For Using DEI"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Futm_sourcerssutm_mediumrssutm_campaignnew-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2654188&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>the article discusses the Trump management&#8217;s new proposal by the IRS to revoke the tax-exempt status of private educational institutions that implement racial preference policies such as Diversity, Equity, and Inclusion (DEI). This move could impact approximately 18,000 schools,including colleges,universities,and trade schools. The Treasury Department aims to target institutions that disguise racial preferences under different labels, asserting that such practices are discriminatory and violate public policy. Following the Supreme Court ruling against <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/is-affirmative-action-next-for-scotus-heres-how-it-could-happen\/\" title=\"Is ... Next For SCOTUS? Here\u2019s How It Could Happen\">race-based admissions schemes<\/a>, some schools like Harvard have attempted to rebrand their DEI offices and policies but continue to maintain controversial practices. The proposed regulation would ban racial preferences across various programs, including admissions, scholarships, athletics, and affinity groups, unless criteria are race-neutral, such as family income or academic achievement. The final rule is set to go into effect on May 31, 2027.the article emphasizes that compliance with anti-discrimination policies is a requirement for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-asks-irs-to-pull-tax-exempt-status-of-terrorism-tied-ngos-washington-examiner\/\" title=\"House asks ... to pull ... of terrorism-tied NGOs - Washington Examiner\">maintaining tax-exempt status<\/a> and highlights ongoing debates about race-conscious policies in education.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div class=\"article-body body-md bdr-top-black pt-30\">\n<div class=\"row justify-content-center\">\n<div class=\"col-12\">\n<figure class=\"article-thumbnail mb-30 mb-sm-60\">\n<div class=\"article-thumbnail-caption d-flex align-items-center justify-content-md-end label-xs mt-15\">         <i class=\"mdi mdi-camera me-10\" aria-hidden=\"true\"><\/i>         <span class=\"visually-hidden\">Image Credit<\/span><a href=\"https:\/\/www.flickr.com\/photos\/202101414@N05\/55307529443\/\">abe mcnatt \/ The White House \/ Flickr \/ Public Domain <\/a> (Cropped)       <\/div>\n<\/figure><\/div>\n<\/p><\/div>\n<div class=\"article-share text-center article-share-simple\">\n<h5 class=\"label-sm mb-10\">Share<\/h5>\n<ul class=\"article-share-list list-unstyled m-0 p-0\">\n<li class=\"article-share-facebook m-0\">       <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/thefederalist.com\/2026\/09\/03\/new-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/\" target=\"_blank\">         <i class=\"mdi mdi-facebook\" aria-hidden=\"true\"><\/i>         <span class=\"visually-hidden\">Share Article on Facebook<\/span>       <\/a>     <\/li>\n<li class=\"article-share-twitter m-0\">       <a href=\"https:\/\/twitter.com\/intent\/tweet?text=New IRS Rule To Strip Private Schools At All Levels Of Tax-Exempt Status For Using DEI&#038;url=https:\/\/thefederalist.com\/2026\/09\/03\/new-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/\" target=\"_blank\">         <i class=\"mdi mdi-twitter\" aria-hidden=\"true\"><\/i>         <span class=\"visually-hidden\">Share Article on Twitter<\/span>       <\/a>     <\/li>\n<li class=\"article-share-truth-social m-0\">       <a href=\"https:\/\/truthsocial.com\/share?title=New IRS Rule To Strip Private Schools At All Levels Of Tax-Exempt Status For Using DEI&#038;url=https:\/\/thefederalist.com\/2026\/09\/03\/new-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/\" target=\"_blank\">         <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"currentColor\" style=\"width:36px;height:auto;\" viewbox=\"0 0 92 93\"><path d=\"M69.444 55.716H56.772v10.37h12.672zM64.487 37.795V27.32H38.666v38.664h13.18v-28.19zM21.05 27.321h12.653v10.471H21.051z\"https:\/\/thefederalist.com\/><\/svg>         <span class=\"visually-hidden\">Share Article on Truth Social<\/span>       <\/a>     <\/li>\n<li class=\"article-share-link m-0\">       <button data-clipboard-text=\"https:\/\/thefederalist.com\/2026\/09\/03\/new-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/\" data-tooltip-content=\"Copied!\" class=\"clip tooltip\">         <i class=\"mdi mdi-link-variant\" aria-hidden=\"true\"><\/i>         <span class=\"visually-hidden\">Copy Article Link<\/span>       <\/button>     <\/li>\n<li class=\"article-share-email m-0\">       <a href=\"mailto:?subject=New IRS Rule To Strip Private Schools At All Levels Of Tax-Exempt Status For Using DEI&#038;body=%20https:\/\/thefederalist.com\/2026\/09\/03\/new-irs-rule-to-strip-private-schools-at-all-levels-of-tax-exempt-status-for-using-dei\/\" target=\"_blank\">         <i class=\"mdi mdi-email\" aria-hidden=\"true\"><\/i>         <span class=\"visually-hidden\">Share Article via Email<\/span>       <\/a>     <\/li>\n<li class=\"article-share-email m-0\"><span class=\"printfriendly pf-button  pf-alignleft\">                     <a target=\"_blank\" href=\"http:\/\/thefederalist.com\/#\" rel=\"nofollow\" onclick=\"window.print(); pfTrackEvent(&#039;New IRS Rule To Strip Private Schools At All Levels Of Tax-Exempt Status For Using DEI&#039;); return false;\" title=\"Printer Friendly, PDF &#038; Email\">                     <span id=\"printfriendly-text2\" class=\"pf-button-text\"><i class=\"mdi mdi-printer\" aria-hidden=\"true\"><\/i><\/span>                     <\/a>                 <\/span><\/li>\n<\/ul><\/div>\n<div class=\"pf-content\">\n<p class=\"wp-block-paragraph\">The Trump administration is hitting private schools where it hurts the most: their tax-exempt status. A new rule proposed by the Internal Revenue Service (IRS) on Thursday would strip private schools at all levels of education of tax-exempt status for using racial preference policies like diversity, equity, and inclusion (DEI).<\/p>\n<p class=\"wp-block-paragraph\">The Treasury Department estimates that the new rule could affect the statuses of 18,000 private elementary, secondary, and post-secondary institutions, including colleges, universities, and trade and professional schools.<\/p>\n<div id=\"fdrlst__b89e9-3320658898\" class=\"d-flex justify-content-center fdrlst__b89e9-paragraph-2 fdrlst__b89e9-entity-placement\">\n<div id=\"div-gpt-ad-1463670073398-0\" class=\"mb-30\"><\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">According to Treasury Secretary Scott Bessent, the move is designed to go after schools that have claimed to get rid of their DEI departments and policies, but in reality have only <a href=\"https:\/\/thefederalist.com\/2025\/04\/29\/harvard-rebrands-dei-office-to-hide-it-from-public-scrutiny\/\" target=\"_blank\" rel=\"noreferrer noopener\">hidden them from public scrutiny<\/a> while the Trump administration goes after racial discrimination.<\/p>\n<p class=\"wp-block-paragraph\">\u201cSchools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,\u201d he <a href=\"https:\/\/www.irs.gov\/newsroom\/treasury-irs-move-to-end-tax-exempt-status-for-discriminatory-practices-in-private-schools\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a> in a statement. \u201cToday\u2019s Treasury and IRS proposed regulations establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Harvard University may have started the trend in 2023 after the Supreme Court decided <em>Students for Fair Admissions v. Harvard<\/em>, ruling that race-based admissions schemes like affirmative action are unconstitutional. Immediately after, then-President Claudine Gay, the disgraced plagiarist <a href=\"https:\/\/aaas.fas.harvard.edu\/people\/claudine-gay\" target=\"_blank\" rel=\"noreferrer noopener\">who still retains a job<\/a> at the school after resigning the presidency, <a href=\"https:\/\/www.washingtonexaminer.com\/news\/1218242\/harvard-university-signals-loophole-for-race-based-admissions-after-supreme-court-says-unconstitutional\/\" target=\"_blank\" rel=\"noreferrer noopener\">signaled<\/a> that prospective students could still benefit from communicating their race on their applications, hinting that admissions boards would still consider that factor.<\/p>\n<p class=\"wp-block-paragraph\">Harvard also <a href=\"https:\/\/thefederalist.com\/2025\/04\/29\/harvard-rebrands-dei-office-to-hide-it-from-public-scrutiny\/\" target=\"_blank\" rel=\"noreferrer noopener\">rebranded<\/a> its DEI office from the \u201cOffice of Equity, Diversity, Inclusion, and Belonging\u201d to the \u201cOffice of Community and Campus Life.\u201d Hiding the <a href=\"https:\/\/thefederalist.com\/2025\/04\/24\/exclusive-universities-across-the-country-still-grant-hundreds-of-dei-scholarships\/\" target=\"_blank\" rel=\"noreferrer noopener\">programs<\/a> while still keeping them functional is a strategy employed by numerous schools. The Justice Department recently <a href=\"https:\/\/www.justice.gov\/opa\/pr\/justice-department-investigation-determines-yales-medical-school-discriminated-based-race\" target=\"_blank\" rel=\"noreferrer noopener\">determined<\/a> that Yale Medical School discriminated based on race.<\/p>\n<p class=\"wp-block-paragraph\">Tax-exempt status is contingent on institutions complying with \u201cfundamental public policy, including the prohibition against racial discrimination,\u201d the IRS stated.<\/p>\n<p class=\"wp-block-paragraph\">Disqualifying noncompliance would not just include DEI in admissions or hiring practices at the schools, which have received a majority of the focus thus far, but would also include racial-preference rules in educational policies, scholarships and loans, athletics, and \u201cevery other school-administered or school-supported program.\u201d<\/p>\n<p class=\"wp-block-paragraph\">This indicates the rule would apply to things like \u201c<a href=\"https:\/\/www.breitbart.com\/politics\/2022\/02\/08\/federal-lawsuit-forces-massachusetts-school-district-to-stop-racially-segregating-students-respect-first-amendment\/\" target=\"_blank\" rel=\"noreferrer noopener\">affinity groups<\/a>,\u201d where students of certain demographics are able to discriminate as a matter of ideology against others who are not part of that group. Under the new guidance, such groups would not likely be allowed if the schools support their ability to meet using space provided by the school.<\/p>\n<p class=\"wp-block-paragraph\">Medical schools that support and teach the idea of \u201c<a href=\"https:\/\/thefederalist.com\/2026\/08\/19\/education-department-breaks-left-wing-university-accreditation-cabal\/\" target=\"_blank\" rel=\"noreferrer noopener\">racial concordance<\/a>,\u201d where non-white patients get race-matched with a doctor, thereby creating an artificial admissions necessity for non-white students, would also likely no longer be able to apply these discriminatory standards.<\/p>\n<p class=\"wp-block-paragraph\">The rule also says, however, that other \u201crace-neutral criteria such as family income, geographic location, first-generation status, individual hardship, military family status, or academic achievement when awarding admission or financial assistance\u201d can be used.<\/p>\n<p class=\"wp-block-paragraph\">Some of those aspects have been used in the <a href=\"https:\/\/www.crainsdetroit.com\/politics-policy\/how-michigan-colleges-diversify-without-affirmative-action\/\" target=\"_blank\" rel=\"noreferrer noopener\">Michigan model<\/a> for <a href=\"https:\/\/repository.law.umich.edu\/cgi\/viewcontent.cgi?params=\/context\/mjrl\/article\/1101\/&#038;path_info=\" target=\"_blank\" rel=\"noreferrer noopener\">circumventing<\/a> affirmative action <a href=\"https:\/\/publicaffairs.vpcomm.umich.edu\/key-issues\/affirmative-action\/\" target=\"_blank\" rel=\"noreferrer noopener\">in admissions<\/a>, which the state outlawed in 2006. Many of the \u201cproxies for race\u201d were superimposed onto admissions schemes after <em>Students for Fair Admissions<\/em>.<\/p>\n<p class=\"wp-block-paragraph\">Once finalized, the rule would take effect May 31, 2027.<\/p>\n<hr class=\"wp-block-separator\">\n<div class=\"article-author-description fst-italic\">      Breccan F. Thies is the White House correspondent for The Federalist. He is a co-recipient of the 2025 Dao Prize for Excellence in Investigative Journalism. As an investigative journalist, he previously covered education and culture issues for the Washington Examiner and Breitbart News. He holds a degree from the University of Virginia and is a 2022 Claremont Institute Publius Fellow. You can follow him on X: @BreccanFThies.<\/div>\n<\/p><\/div>\n<div class=\"article-author mt-30 mt-sm-60 pt-30 bdr-top-bold-black\">\n<div class=\"row g-0 align-items-center\">\n<div class=\"col-12 col-md-6\">\n<div class=\"article-author-profile d-flex align-items-center justify-content-center justify-content-md-start\">\n<div class=\"article-author-details\">\n<div class=\"label-md\">Breccan F. Thies<\/div>\n<div class=\"article-author-twitter label-sm d-flex align-items-center mt-10\">             <i class=\"mdi mdi-twitter me-5\" aria-hidden=\"true\"><\/i>             <span class=\"visually-hidden\">Visit on Twitter<\/span>            <a href=\"https:\/\/twitter.com\/BreccanFThies\" target=\"_blank\" class=\"text-decoration-none\">@BreccanFThies<\/a>           <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"col-12 col-md-6 d-flex justify-content-center justify-content-md-end mt-15 mt-md-0\">        <a href=\"https:\/\/thefederalist.com\/author\/breccan-thies\/\" class=\"btn btn-black btn-small\">More Articles<\/a>     <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"article-tags no-print bdr-top-black mt-30 mt-sm-60 pt-15 pt-md-45\">\n<ul class=\"list-unstyled d-flex flex-wrap align-items-center mb-0 mx-n10 p-0\">\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/dei\/\" class=\"btn btn-black btn-small\">DEI<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/diversity-equity-inclusion-2\/\" class=\"btn btn-black btn-small\">Diversity Equity &#038; Inclusion<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/internal-revenue-service\/\" class=\"btn btn-black btn-small\">Internal Revenue Service<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/irs\/\" class=\"btn btn-black btn-small\">IRS<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/scott-bessent\/\" class=\"btn btn-black btn-small\">Scott Bessent<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/students-for-fair-admissions-v-harvard\/\" class=\"btn btn-black btn-small\">Students for Fair Admissions v. Harvard<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/supreme-court\/\" class=\"btn btn-black btn-small\">Supreme Court<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/tax-exempt-status\/\" class=\"btn btn-black btn-small\">tax-exempt status<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/treasury-department\/\" class=\"btn btn-black btn-small\">Treasury Department<\/a><\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IRS targets private schools&#8217; tax exemption over racial policies<\/p>\n","protected":false},"author":179,"featured_media":2654189,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/09\/55307529443_992235544a_3k.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[16574,35136,8362,85089,28166],"class_list":["post-2654188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-dei","tag-education-policy","tag-irs","tag-private-schools","tag-tax-exempt"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/09\/55307529443_992235544a_3k.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2654188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/179"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2654188"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2654188\/revisions"}],"predecessor-version":[{"id":2654192,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2654188\/revisions\/2654192"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2654189"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2654188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2654188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2654188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}