09/04/2026
IRS and Treasury announcements released September 3, 2026.
What is actually happening
The Treasury Department and IRS have issued proposed regulations that would make a private school ineligible for federal 501(c)(3) tax-exempt status if it adopts, maintains, or enforces policies that discriminate based on race, color, or national/ethnic origin. This would cover admissions, scholarships, loans, athletics, facilities, and other school programs.
The proposal applies broadly to:
Private elementary and secondary schools
Colleges and universities
Medical, law and other professional schools
Trade schools
Treasury/IRS estimate that as many as 18,000 private educational institutions could be affected