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Trump administration pushes to remove tax exemption for private colleges with DEI policies

  • The Trump administration proposes stripping private schools and colleges of tax-exempt status if they give race-targeted help to students, with the rule slated to take effect after May 2027.
  • The change could affect up to about 18,000 private institutions and jeopardize race-based scholarships, DEI programs and related donations.
  • The plan has drawn strong pushback from higher‑education leaders as an attack on access and diversity, and recalls the rare IRS action against Bob Jones University decades ago.
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