Treasury proposes stripping tax exemption from 18,000 schools that use race in admissions or aid

Treasury and the IRS proposed a rule Thursday, Sept. 3. It could strip tax breaks from about 18,000 private schools and colleges. The rule targets race-based preferences in admissions, scholarships or other policies. It is not final. The count covers schools the rule could reach, not schools found to discriminate. Treasury Secretary Scott Bessent said such practices are discriminatory. Calling them "equitable, inclusive, or diversity-enhancing" does not change that, he said.

• About 18,000 institutions covered, by Treasury's estimate
• Would take effect after May 2027 only if the rule is finalized