Racial Nondiscrimination in Private Schools
- Published
- Sep 4, 2026
- Citation
- 91 FR 56811
- Docket
- REG-119986-25
- Agencies
- DEPARTMENT OF THE TREASURY, Internal Revenue Service
Notice of proposed rulemaking.
Summary
The proposed rule would prohibit private schools that engage in racial, color, or national‑origin discrimination—whether in admissions, scholarships, athletics, or other school policies—from being classified as tax‑exempt organizations. The change reflects the United States’ long‑standing public policy that such discriminatory practices are unacceptable and should not be supported by federal tax benefits. The rule is being issued by the Department of the Treasury, which oversees the Internal Revenue Service’s authority over tax‑exempt status. It applies to any private school that seeks or maintains exemption from federal income tax and that discriminates on the prohibited bases. Schools that continue discriminatory practices after the rule takes effect would lose their tax‑exempt designation. The notice was published on September 4, 2026, and the final rule is expected to be issued later this year. The regulations would become effective for taxable years beginning after May 31, 2027. Interested parties have until the comment deadline—specified in the notice (typically 60 days from publication)—to submit feedback before the Treasury finalizes the rule. After the comment period closes, the agency will review the input, finalize the regulation, and then schools will need to comply by the 2027 date to retain tax‑exempt status.
AI-generated summary — verify against the Federal Register text.
Official abstract
This document contains proposed regulations that would update existing regulations to provide that a private school is not described as an organization exempt from Federal income tax if it discriminates on the basis of race, color, or national or ethnic origin in administration of its educational, admissions, scholarship, athletic, or other policies, based on the fundamental public policy of the United States against such practices. These proposed regulations would affect private schools in taxable years beginning after May 31, 2027, which is after the final regulations are expected to be published.
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