The U.S. Department of the Treasury proposed a policy on Sept. 3 to outlaw private universities, K-12 schools and trade schools from administering race-based initiatives. The policy effectively would forbid scholarships, admissions opportunities and grants aimed toward minorities and people of Color at those institutions.
Most public and private universities in the United States are currently exempt from paying federal taxes under section 501(c)(3) of the Internal Revenue Code. If the policy is approved, these institutions risk losing their federal tax-exempt status if they do not change their policies by May 31, 2027.
The new proposal would impact as many as 18,000 private educational institutions, including Michigan’s 401 private universities, 894 private elementary and secondary schools and 58 private trade schools…