Treasury Department moves to cut tax-exempt status for schools with DEI policies

Published September 3, 2026 10:47am ET | Updated September 3, 2026 10:47am ET



The Department of the Treasury proposed regulations that would strip federal tax-exempt status from private schools that engage in racial discrimination through diversity, equity, and inclusion policies.

The proposal comes as the Trump administration has worked to eliminate DEI initiatives across the federal government and in institutions receiving federal support.

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