IRS moves to end tax exemption for schools with aid to minority race students

NPR - The IRS has proposed a rule that would revoke the tax-exempt status of private schools and colleges that have programs designed to help students based on race. Many institutions currently offer programs to support Black or Latino students who may be the first in their families to attend college. Some also aim to foster a diverse student body by offering scholarships and other initiatives. The administration argues these programs amount to racial discrimination.  The administration is attempting to apply financial pressure on these schools to get what it wants: an end to race-based programs, NPR’s Adrian Florido says. By operating as non-profit, tax-exempt entities, these schools avoid paying federal income taxes. This status also serves as a crucial fundraising tool, as donations from alumni and others become eligible for tax deductions. The IRS hasn't clarified how it plans to identify schools with programs it disapproves of, but it estimates that about 18,000 private schools could be affected. Legal challenges are likely to arise, as the authority of the IRS to unilaterally redefine racial discrimination and revoke tax-exempt status remains unclear.