Treasury proposes ending tax exemptions for discriminatory private schools

The Treasury Department and the IRS proposed regulations that would deny federal tax-exempt status to private schools with policies or practices that discriminate based on race, color, or national or ethnic origin. The proposal would cover admissions, scholarships, athletics and other school-administered programs.

The agencies estimate the rule could affect as many as 18,000 private educational institutions, including primary and secondary schools, colleges and trade schools. Religious schools could retain religious missions and select students based on genuine religious affiliation, while schools could use race-neutral criteria to assist disadvantaged students. Final regulations would apply to tax years beginning on or after May 31, 2027.

Read the full story at home.treasury.gov.