The US Treasury Department has proposed a regulation that would remove the tax-exempt status of private schools and colleges if they provide targeted benefits to students based on race. The rule, announced Thursday, would take effect after May 2027 if finalized. It broadly aims to end policies or programs that assist students because of their race, specifically stating that such benefits in admissions, scholarships, and facilities would be incompatible with the rule. The administration has cited Civil Rights-era laws and argues that these policies discriminate against white and Asian American students. The proposal is part of a broader campaign to eliminate diversity programs directed at Black, Hispanic, and other minority students.