NewsWPLG Local 10 – Main FeedSeptember 3, 2026Miami-Dade
Trump Administration Proposes Removing Tax-Exempt Status for Private Colleges with DEI Policies
The Trump administration has proposed a new regulation that would strip private schools and colleges of their tax-exempt status if they provide targeted assistance to students based on race. The Treasury Department estimates the rule could affect up to 18,000 private educational institutions, with the policy set to take effect after May 2027 if finalized.
Read the full story at WPLG Local 10 – Main FeedWhy It Matters
This proposal threatens the of thousands of private colleges, which could force significant cuts to financial aid and research programs if schools are forced to abandon diversity, equity, and inclusion (DEI) initiatives to maintain their nonprofit standing.
Key Facts
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Who's Mentioned
personScott Bessent“Announced the proposal and stated that race-based preferences are discriminatory”personFrank J. Bisignano“Stated that schools engaging in racial discrimination should expect to lose tax-”organizationTreasury Department“Proposed the new regulation”personTim Powers“Highlighted compliance burdens and legal uncertainties”personMike Gavin“Criticized the proposal as an attack on access to higher education”personPreston Cooper“Commented on the political implications of the policy”organizationHarvard University“Cited as a target of previous administration pressure”organizationIRS“Responsible for enforcing tax-exempt status”personMarjorie Hass“Noted the proposal would likely impact earmarked donations”organizationBob Jones University“Historical precedent for loss of tax-exempt status in the 1970s”personDonald Trump“Initiated the policy to end DEI programs in higher education”