by Kirsten M. Eriksson on September 10, 2026
The U.S. Department of the Treasury and Internal Revenue Service have proposed regulations that would make racial nondiscrimination an express condition of federal tax-exempt status for various primary and secondary schools, including private K-12 schools. The proposal treats race-conscious policies as discriminatory even when intended to promote diversity or remedy disadvantage. If finalized in their current form, a school's use of race as a criterion—even for a remedial or diversity-related purpose—could jeopardize its federal tax-exempt status.
The proposed regulations would place in jeopardy schools’ loss of tax-exempt status under Section 501(c)(3)
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