Trump Sics IRS on Universities That Support Non-White Students
Donald Trump has found a new way to target diversity initiatives in higher education.

The Trump administration has found a new way to target Black and brown students at American universities—by giving white kids all their money.
The Department of Treasury proposed a new rule Thursday that would require the IRS to deny tax-exempt status to any private school offering targeted support for Black and minority students. If implemented, the rule will go into effect on May 31, 2027, and affect an estimated 18,000 schools across the country.
The Trump administration has long asserted that the very programs meant to address the nation’s history of racial discrimination and segregation are themselves a form of racial discrimination in violation of federal standards. The new rule comes amid sweeping efforts by the government to gut funding from supposedly diversity, equity, and inclusion programs, and to reallocate any money that’s not earmarked for the white—sorry, right—purposes.
The proposed rule could have stark implications for historically Black colleges and universities, which are currently tax-exempt. Even as the Trump administration made efforts to gut funding for programs pushing DEI at other schools, these institutions previously received a financial boost from the Trump administration, a surprising move that gave some the impression that the president has no problem with Black people in Black spaces. He just couldn’t stomach them attending the universities his friends’ kids might go to.
The proposed rule also stands to gut charitable giving from donors. If schools fail to comply with the Trump administration’s rule and lose their tax-exempt status, donors’ gifts would no longer be considered tax-deductible. If schools hope to retain their tax-exempt status, the proposed regulation would force institutions to work with donors to determine alternative sets of eligibility criteria for scholarship recipients.
The proposed rule is likely to face legal challenges, but it comes as the Supreme Court has gutted protections against racial discrimination toward Black and minority communities by pretending we all live in a postracial society.



