Trump admin targets 18K schools with race-based criteria threatening pricey consequences

WASHINGTON — The Trump administration is proposing to strip schools of their tax-exempt status if they give advantages to minority students based on race, including when it comes to admissions, scholarships and financial aid. More than 18,000 schools across the country could be affected, the Treasury Department estimates, noting the new rule would not apply to religious institutions nor would it affect “race-neutral criteria” such as family income, individual hardship, military family status or academic achievement.But any school that confers benefits on the “basis of race, color, or national or ethnic origin” would no longer be tax-exempt.“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,” Treasury Secretary Scott Bessent said in a statement. “Today’s Treasury and IRS proposed regulations establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.”While these schools would likely not pay much in taxes it could affect their fundraising efforts as donors would no longer be able to write off donations on their taxes. President Trump has sought to remake the country’s education system, taking much power away from the federal government and returning it to the states. His administration has targeted colleges and universities for race-based practices and Trump has tried to take away Harvard University’s tax-exempt status because of what he calls its refusal to stamp out alleged antisemitism and hate on campus.But Thursday’s new rule expands his use of the IRS to try to force schools to follow his vision.It would apply to a range of education institutions –  private primary and secondary schools, colleges, universities, professional schools, and trade schools. It would also apply to schools that don’t take federal funding. For example, the Kamehameha S...