The U.S. Treasury Department and the Internal Revenue Service (IRS) on Thursday issued proposed regulations aimed at revoking the federal tax-exempt status of thousands of private schools, citing the use of race in admissions or student financial aid. This move could eliminate tax deductions for families donating to these schools and potentially impact scholarships for affected students. U.S. Treasury Secretary Scott Bessent stated that the action is intended to eradicate racial discrimination within the American education system. If finalized, the new rules would apply to tax years beginning on or after May 31, 2027.