Why the Trump administration’s bid to end diversity efforts at nonprofit schools is likely to get tied up in court

Some 18,000 private schools could be affected by a proposed new rule if it goes into effect. Jumping Rocks/Universal Images Group via Getty Images

The Trump administration wants to strip all nonprofit colleges, universities and private K-12 schools of their tax-exempt status if any of their programs designed to help students uses race as a criterion for eligibility.

This change is included in a rule the Treasury Department and Internal Revenue Service proposed on Sept. 3, 2026. The rule could take effect after May 31, 2027, following a two-month-long comment period – as long as it’s not blocked or delayed by the legal challenges likely to arise.