09/08/2026
Private schools that target aid for minority students could lose their tax-exempt status, according to new rules proposed by the U.S. Treasury Department last week.
“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,” said Treasury Secretary Scott Bessent.
The rules would apply to admissions policies and financial aid. Federal law grants tax-exempt status to organizations that operate exclusively for educational purposes.
UNG professor and president of the Georgia chapter of the American Association of University Professors said he expects educational organizations to sue to stop what he called an “attack on higher education.”
“The impact would kneecap thousands of schools, deter millions of students, and likely gut donations to those places," he said. "This is the anti-woke defunding higher education as promised by Trump.”
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Georgia colleges and private schools could lose tax-exempt status under proposed Trump administration rules targeting race-based admissions and aid.