WASHINGTON (AURN News) — The Trump administration is proposing an IRS rule targeting private schools and colleges that use race in admissions, scholarships, financial aid, athletics or other programs, even when the stated purpose is to correct past discrimination.
For Black families, this could mean fewer scholarships, recruitment programs, mentoring opportunities and campus initiatives designed to close racial gaps.
Private HBCUs would not lose their tax-exempt status simply for serving predominantly Black students, but programs with race-based eligibility could face scrutiny.
The administration says race-neutral factors, including income, ZIP code, hardship or first-generation status, can still be used, but those categories do not always capture the specific barriers created by race.
The financial stakes are enormous. A school that loses its 501(c)(3) status could owe federal taxes, while donors could lose the ability to deduct contributions.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @ebonymcmorris & @aurnonline.
