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Trump Administration Proposes Ending Tax-Exempt Status for Discriminatory Private Schools

Trump Administration Proposes Ending Tax-Exempt Status for Discriminatory Private Schools
Trump Administration targets racial discrimination in private schools; proposes ending tax-exempt status for violators · livemint.com

The Trump administration has proposed new rules that could take away the tax-exempt status of private schools if they discriminate based on race, color, or national or ethnic origin.

This means schools can't favor or exclude students based on these factors in admissions, scholarships, or other programs.

The rules would apply to many types of schools, including colleges and universities.

Religious schools can still maintain their religious identity, and schools can use other factors like family income or academic achievement to help students.

The rules are not final yet and would start in 2027 if approved.

The goal is to make sure all schools follow fair practices.

Key facts

Proposed by
US Department of the Treasury and IRS
Target
Private schools with racial discrimination policies
Affected areas
Admissions, scholarships, athletics, financial assistance
Estimated affected institutions
18,000
Effective date (if finalized)
May 31, 2027
Exceptions
Religious schools maintaining religious identity
Allowed criteria
Family income, geographic location, academic achievement

Sources

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