The Trump administration announced a proposed regulatory change on Thursday aimed at private schools that offer preferential treatment to students based on race. According to the Treasury Department and the Internal Revenue Service (IRS), the new rule is designed to create a uniform standard for tax-exempt eligibility. Under this proposal, private institutions that engage in what the administration defines as discriminatory practices would lose their federal tax-exempt status.

Officials stated that the goal of this policy is to ensure that federal tax benefits are not extended to organizations that utilize race-based preferences. While the administration frames this as a measure to enforce non-discrimination, the proposal has drawn attention for its potential impact on private schools that have historically implemented programs aimed at supporting minority student populations. The administration maintains that these institutions must adhere to a standard that prohibits preferential treatment to maintain their tax-exempt benefits. As the regulation moves through the proposed phase, it remains to be seen how the IRS will define the specific criteria for 'discriminatory practices' and how this will affect private school admissions and scholarship policies nationwide.