Treasury Department Holds Educational Institutions Accountable

WASHINGTON, D.C.—The America First Policy Institute (AFPI) applauds Secretary Scott Bessent for the Treasury Department’s newly proposed rules clarifying that educational institutions that discriminate based on race in their offerings may lose their tax-exempt status. President Trump promised to enforce the Civil Rights Act and end illegal race-based preferences, and he is keeping his promise.

“This rule has clearly sent shockwaves throughout higher education,” said Michael Shires, Ph.D., vice chair of Education Opportunity and Higher Education Policy. “But colleges should have been on notice since at least 2023 when the Supreme Court ruled in Students for Fair Admissions v. Harvard that racial discrimination in admissions, scholarships, and education offerings is unconstitutional. The federal government can’t provide tax exemption benefits to institutions that flout the 14th Amendment. Fortunately, compliance should be easy: just stop discriminating based on race.”

Read more about AFPI’s work to restore merit and end discriminatory practices, including those conducted under the guise of “diversity, equity, and inclusion” here.