Michael Roth, the president of Wesleyan University, has commented on the Trump administration’s proposal to revoke tax-exempt status for private schools and universities that offer certain benefits based on race. He has been vocal in his criticism, stating that the proposal could force institutions to abandon programs that heavily support students of color.
Roth explained, “This rule from the administration is meant to frighten universities into dismantling programs that benefit students of color.” He expressed concern that the administration is using the Internal Revenue Service (IRS) to promote its ideology. The administration contends that any program offering benefits based on race is discriminatory, even if the intention is to enhance diversity or rectify the outcomes of prior discrimination. However, they argue that institutions can continue with programs based on race-neutral criteria such as income or first-generation status.
There remains considerable legal ambiguity regarding whether the IRS can redefine racial discrimination in this manner and subsequently revoke tax-exempt status. Roth pointed out that Wesleyan University does not have programs limited exclusively to students based on race. The university does, however, provide support for first-generation and low-income students, who are predominantly students of color at Wesleyan.
Roth highlighted the serious financial ramifications of losing tax-exempt status. Many schools might opt to alter or remove certain programs preemptively to avoid the substantial costs of a legal battle. He remarked on the situation of “anticipatory compliance,” where educational institutions are making changes to avoid potential legal conflicts.
The Treasury Department and the IRS have estimated that approximately 18,000 private schools, colleges, and universities could be impacted by the proposal. Should it become finalized, the rule would be applied starting in May 2027.
The interview offers further insights from Wesleyan University’s president and can be accessed via the NPR platform.