Trump challenges schools' tax-exempt status over race-based aid

The Trump administration has proposed a regulation allowing the IRS to revoke the tax-exempt status of private schools and colleges that offer race-based admissions, scholarships, or support programs. The change aims to eliminate diversity, equity, and inclusion initiatives, potentially affecting over 18,000 institutions nationwide, including California schools like Stanford and USC. Critics argue the move is illegal and harmful to efforts addressing racial disparities in education, while supporters see it as enforcing legal restrictions on race-conscious programs. The proposal is open for public comment and is expected to take effect after May 2027.

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