The Trump administration proposed regulations that could revoke the federal tax-exempt status of private schools and colleges that discriminate on the basis of race, color, or national or ethnic origin. The Treasury Department and Internal Revenue Service said the proposed section 501(c)(3) rules would cover admissions, educational policies, scholarships and loans, athletics, and other school-administered or school-supported programs. Treasury and the IRS estimate that as many as 18,000 private primary and secondary schools, colleges, universities, professional schools, and trade schools could be affected. The proposal updates federal guidance in light of Supreme Court decisions including Brown v. Board of Education, Bob Jones University v. United States, and Students for Fair Admissions v. Harvard, while removing provisions that allowed certain racial preferences. Religious schools could retain religious missions and select students based on genuine religious affiliation, while all schools could use race-neutral criteria such as family income, geography, first-generation status, individual hardship, military family status, or academic achievement. Final regulations would apply to taxable years beginning on or after May 31, 2027. The proposal follows the administration’s broader campaign against diversity, equity and inclusion policies and could face legal challenges if adopted.