US Treasury proposes tax-exemption rules barring racial discrimination in private schools

The US Treasury proposed regulations that would deny federal income tax exemption to private schools that discriminate on the basis of race, color, or national or ethnic origin in educational, admissions, scholarship, or athletic policies. The rule, effective for tax years beginning after May 31, 2027, codifies existing policy and could affect a small number of schools. It signals continued federal enforcement of nondiscrimination standards in education, with potential political and legal pushback.