The Trump administration has proposed new regulations to strip tax-exempt status from private schools and colleges that use race in admissions, scholarships or other school-run programmes, marking the latest push by federal officials to remove diversity, equity and inclusion practices from education. Put forward by the Treasury Department and Internal Revenue Service, the rules are intended to end what officials describe as discrimination against white students in favour of students of colour, and follow the Supreme Court's 2023 ruling that curtailed race-conscious college admissions. The move is likely to face legal challenges, with academic groups already warning it could be used to undermine, rather than uphold, civil-rights protections.

The proposal would cover admissions, scholarships, loans, athletics and any other school-administered or supported programme that takes race, colour or national or ethnic origin into account "for any purpose," including initiatives addressing past discrimination. The Treasury estimates the rules could affect around 18,000 schools at all levels and 750,000 students who may rely on race-based scholarships, though religious schools could still select pupils based on faith, and race-neutral criteria such as income or first-generation status would remain permitted. The plan is now subject to public comment, and the American Association of University Professors has said it may pursue legal action, arguing the move misuses civil-rights law rather than enforcing it.