Wesleyan University President Responds to Proposed Changes in Tax-Exempt Status

Michael Roth, president of Wesleyan University, expressed concerns over a proposal from the Trump administration. The administration aims to revoke tax-exempt status from private educational institutions that offer benefits based on race.

Roth stated that Wesleyan does not plan to alter its programs in response to this proposal. He strongly criticized the move, stating it pressures universities to eliminate programs that benefit students of color. Roth remarked, “This rule from the administration is meant to frighten universities into dismantling programs that benefit students of color. It’s using the IRS to promote the ideology of the White House, and it’s extraordinary overreach on their part.”

The Trump administration argues that racial considerations in programs are discriminatory. They suggest schools should focus on race-neutral factors like income and first-generation status. Legal uncertainties remain about whether the IRS can redefine racial discrimination and revoke tax-exempt status for these reasons. Potential legal challenges might delay or block the proposal.

Wesleyan University does not have programs exclusive to specific races. However, it does support first-generation and low-income students, who are often students of color, according to Roth. Losing tax-exempt status would pose significant financial challenges for Wesleyan. Roth mentioned that educational institutions might alter or discontinue programs to avoid expensive legal battles. “That’s what’s happening right now in America: anticipatory compliance,” he stated.

The Treasury Department and IRS estimate that up to 18,000 private educational institutions might be affected by this proposal. If approved, the rule could be implemented after May 2027.

For further insights, listen to the full interview linked above.

This digital version was produced by Majd Al-Waheidi and edited by Treye Green.