AISAP Responds! New Treasury & IRS Proposed Rules: What Independent Schools Need to Know

On September 3, 2026, the U.S. Department of the Treasury and the Internal Revenue Service announced proposed regulations that could significantly affect private schools and their tax-exempt status.

Under the proposal, a private school that "adopts, maintains, or enforces" any policy or practice that discriminates based on race, color, or national or ethnic origin — in admissions, scholarships and financial aid, athletics, or any other school-administered or school-supported program — would no longer qualify for federal tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Schools would still be permitted to use race-neutral criteria (such as family income, geographic location, first-generation status, or academic achievement) and to maintain a religious mission or admit on the basis of religious affiliation. 

If finalized, the rule would apply to taxable years beginning on or after May 31, 2027 — giving schools a runway to review and update admissions, scholarship, and financial aid policies. Public comments are due November 3, 2026, and the change could touch as many as 18,000 private schools nationwide.

This webinar will review the legal and practical considerations independent schools should assess while the notice and comment period is underway.

The session will be recorded and available for all registrants and attendees.