Secretary of Education Linda McMahon, alongside President Donald Trump, announced a significant policy change aimed at transforming the U.S. educational system. The announcement took place on August 24, 2026, in the Rose Garden of the White House. This initiative aims to reduce federal control over education and return authority to states and parents.
Redirecting Federal Funds
The administration plans to reallocate substantial funds from Diversity, Equity, and Inclusion (DEI) programs directly to classrooms. This move is intended to grant states the flexibility to navigate away from federal bureaucracy through necessary waivers.
New Regulations on Private Schools
On Thursday, the Trump administration proposed new rules that could revoke the tax-exempt status of private schools and colleges if they use race as a criterion in admissions, scholarships, or other programs. This policy, put forward by the Treasury Department and Internal Revenue Service, is positioned as a measure to combat perceived discrimination against white students.
Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,stated Treasury Secretary Scott Bessent.
This proposal follows a 2023 Supreme Court decision that largely prohibited race-conscious admissions policies in higher education.
Scope and Impact of the Proposal
The regulations would impact admissions, scholarships, and a wide array of school-supported programs. The Treasury estimates about 18,000 schools and 750,000 students could be affected. However, the proposal permits religious schools to maintain their religious-based admissions.
It also allows schools to support disadvantaged students through race-neutral criteria, such as income and geography.
Potential Legal Challenges
The proposal is open for public comments and is likely to face legal opposition. The American Association of University Professors has expressed potential legal action, arguing that the policy misuses civil-rights law against protected groups.
This is not neutral enforcement of civil-rights law. It is an attempt to turn civil-rights law against the very people it was enacted to protect,stated AAUP President Todd Wolfson.
Since January 2025, the Trump administration has been working to eliminate DEI policies in both K-12 and higher education, focusing on institutions with race-based admissions and scholarships.
Harvard University, in particular, has been scrutinized, facing federal funding cuts, investigations, and threats to its tax-exempt status.

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