White House Redirects Education Power to States and Parents

On August 24, 2026, in the Rose Garden, Education Secretary Linda McMahon and President Donald Trump presented a policy aimed at changing the nation’s school system. The administration plans to reduce federal oversight and enhance parental rights. Billions of dollars will move from DEI (Diversity, Equity, and Inclusion) programs to classrooms. States will receive waivers to minimize federal bureaucracy.

New Rules on Private Schools and Colleges

The Treasury Department and Internal Revenue Service introduced regulations to rescind tax-exempt status from private schools that use race in admissions or scholarships. This addresses alleged discrimination against white students and aligns with the 2023 Supreme Court ruling against race-conscious admissions.

Treasury Secretary Scott Bessent stated, “Schools rebranding race-based preferences does not change their discriminatory nature.”

Impact and Scope of the Proposal

The proposed rules cover admissions, scholarships, athletics, and other school programs considering race, color, or national origin, affecting around 18,000 schools and 750,000 students potential for race-based scholarships. Religious schools maintain the ability to choose students by religious criteria.

The proposal won’t restrict schools from assisting disadvantaged students by race-neutral measures such as income or geography.

Potential Legal Challenges

The proposal faces a public comment phase, likely followed by legal challenges. The American Association of University Professors is evaluating legal opposition, arguing that this turn of civil-rights law misapplies protections intended to combat racial exclusion.

AAUP President Todd Wolfson remarked, “For half a century, federal policy recognized that measures intended to dismantle entrenched racial exclusion are not equivalent to policies designed to preserve it.”

Ongoing Efforts and Actions

Since January 2025, the administration has focused on removing DEI policies in education, addressing race-based admissions and alleged campus antisemitism. Notably, Harvard University faces funding cuts and investigations targeting its tax-exempt status.