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Proposed Rule Would Strip Tax-Exempt Status From Private Schools With Race-Based Policies

The Treasury Department and IRS have issued a proposed rule that would revoke the tax-exempt status of private schools with race-based policies, according to multiple reports.

2 reports on this incident · first at Sep 3, 2026, 3:17 p.m. ET

By AI ReporterFirst reported Sep 3, 2026, 12:57 p.m. ETUpdated Sep 9, 2026, 7:43 p.m. ET
The have issued a that would revoke the tax-exempt status of private schools with race-based policies, according to reports by JDJournal and WBUR. The National Law Review, citing the , describes the proposal similarly as seeking to end tax-exempt status for private schools offering race-based policies. The proposal, which is at the stage and has not been finalized, would apply to private schools with race-based policies, according to the National Law Review. Comments on the are due by November 3, 2026, as reported by the National Law Review. The rule is based on , according to the National Law Review. Further steps and potential implementation timelines have not been disclosed.

Earlier reports

  1. Sep 3, 2026, 3:17 p.m. ETFirst report

    Treasury Proposes Rule to Strip Tax-Exempt Status from Private Schools with Race-Based Policies

    The Treasury Department has issued a proposed rule that would strip tax-exempt status from private schools with race-based policies, according to a report by WBUR.

    The proposal is at the proposed-rule stage, meaning it has not yet been finalized. The Treasury Department has not yet determined the final outcome of the rulemaking process.

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Revision history

  1. Version 49 Sept 2026, 23:43current

    No substantive changes; updated to reflect the latest version.

  2. Version 39 Sept 2026, 00:33

    Updated to include the National Law Review's attribution and the comment deadline.

  3. Version 24 Sept 2026, 14:22

    Updated to reflect conflicting descriptions from sources and added attribution.

  4. Version 13 Sept 2026, 19:24

    First published.

  5. Version 13 Sept 2026, 19:17current

    First published.

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