Senator Raphael Warnock (D-GA), alongside Senators Ron Wyden (D-OR) and Bernie Sanders (I-VT), is seeking answers from the Internal Revenue Service (IRS) about a Trump administration proposal to revoke the tax-exempt status of secondary schools and universities with diversity programs.
What exactly is this new proposal from the IRS? The Treasury Department’s proposed rule would deny tax-exempt status to any private school if it has any policy or program, including admissions and scholarships, that the IRS finds to be racially discriminatory.
If finalized, the new rule would go into effect in May 2027 and apply to secondary schools and universities.
The proposal comes amid broader efforts by the Trump administration to pressure schools and universities to eliminate diversity, equity, and inclusion (DEI) policies across the country.
What Sen. Raphael Warnock and his colleagues had to say in their letter:
- “The proposed rule reinterprets the public policy doctrine and chills lawful actions designed to advance educational opportunity. We urge Treasury to rescind this proposal.
- “This is a clear attempt by the Trump Administration to weaponize the tax code and punish educational institutions for political or subjective reasons using a definition of racial discrimination not endorsed by Congress or the Supreme Court.
- “This attack on our education system will severely limit admissions, scholarships and loans, athletics, and academic assistance programs that students of all backgrounds rely on to access a quality education.
- “The proposed rule is subjective in its definition of discrimination, and rather than make educational opportunities more equitable, it will threaten academic opportunity and achievement for decades to come.”
Further Context: In September, Senators Warnock and Wyden launched a similar inquiry into reports that the Trump administration was developing plans to weaponize the IRS’s tax enforcement authority to target perceived ideological opponents.
In their letter, the senators demanded that Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano disclose any details about the Trump administration’s directive targeting non-profit organizations for political reasons.
