California Attorney General is co-leading 20 attorneys general in opposing a proposed Internal Revenue Service rule that would revoke tax-exempt status for thousands of private schools with diversity, equity and inclusion-related policies and programs, his office announced Nov. 2.
According to the release, the proposed rule would allow the IRS to deny or revoke the tax exemption of certain K-12 schools, colleges, universities or professional schools with policies that the Trump administration deems inconsistent with its executive orders and political aims. The coalition says that threatens educational outcomes, scholarships, loans, athletics and donors' protected speech.
Tax-exempt status lets private schools that operate exclusively for charitable or educational purposes attract tax-deductible donations, grants and other benefits that pay for programs and scholarships. The IRS's current Revenue Procedure allows private schools to have a policy that promotes the establishment and maintenance of a racially nondiscriminatory policy for admissions, facilities and programs, and financial aid. The release says the Trump administration's own estimate indicates the proposed regulations may change that for thousands of private schools.
“With this proposed rule, the Trump Administration is punishing private schools for promoting equal opportunity and programs that ensure all students can grow and achieve their dreams without roadblocks. Not only is this unconstitutional, but it also harms thousands of schools’ philanthropic work that helps students succeed,” Bonta said. “Once again, President is using unlawful excuses to play political games with America’s promise of a good education.”
The comment letter argues the rule is unlawful because it subverts civil rights law and equal protection principles; would place severe burdens on affected private schools, state attorneys general, the courts and donors who would have to modify charitable gifts; and violates the federal Administrative Procedure Act and case law on federal regulations under Loper Bright Enterprises v. Raimondo (2024). The release also says the proposal acknowledges some legal and administrative costs for private schools but fails to account for the breadth and depth of the costs and burdens.
Bonta co-leads the letter with Massachusetts Attorney General Andrea Joy Campbell, Minnesota Attorney General Keith Ellison and New York Attorney General Letitia James. They are joined by the attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Michigan, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington and the District of Columbia.
State
Rob Bonta
Attorney General · Democrat
Named once in this story.
Portrait: Official portrait
Federal
Donald J. Trump
President of the United States · Republican
Named once in this story.
Portrait: Daniel Torok / The White House (public domain)
Sources & methodology
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