ACE and more than 40 other higher education associations are urging the Internal Revenue Service (IRS) to withdraw a Trump administration proposal that could strip private, nonprofit colleges and universities of their tax-exempt status over alleged racial discrimination in admissions, scholarships, and other campus programs.
In comments submitted to the IRS?, the associations argue that the proposal exceeds the agency’s legal authority, fails to define what conduct could jeopardize an institution’s tax-exempt status, and leaves colleges vulnerable to politically motivated enforcement.
The Treasury Department and IRS announced the proposal Sept. 3 as part of the administration’s broader effort to combat what it considers racial discrimination in education. The rule would apply to private schools from elementary through higher education, potentially affecting as many as 18,000 institutions nationwide.