SQUAWK/NEWS
Account
Theme
Account
Menu
Live News GEOPOLITICS ARTICLE L impact

Schumer blasts Trump plan to strip tax breaks from private schools

Sen. Chuck Schumer criticized Trump administration rules that would revoke tax-exempt status from private schools deemed discriminatory, calling it an assault on American education.

Sen.

Chuck Schumer (D-N.Y.) expressed his disapproval of the Trump administration’s proposed rules that would revoke tax-exempt status from “discriminatory” private schools.

Schumer accused President Donald Trump of leading an “assault on American education,” which he claims is “defunding it, radicalizing its agenda, and dismantling it.” He further urged Trump to focus on building up schools rather than attacking them.

The Senator pledged that he and his fellow Democrats in the Senate will continue to fight for every child’s access to a good education.

Rather than making life affordable for American families, Trump has led a full-fledged assault on American education: defunding it, radicalizing its agenda, and dismantling it Instead of attacking our schools he should be building them up, creating a better education for our… — Chuck Schumer (@SenSchumer) September 3, 2026 Read Also: Chuck Schumer Says 'This Is the Best Trump Can Do' as Gas Prices Rip: 'Families Are Begging for Relief' Treasury Targets Race-Based Bias in Schools Schumer’s criticism came as the Treasury and IRS, on Thursday, proposed rules to strip tax-exempt status from private schools that discriminate based on race, color or national origin.

The proposal, which Treasury and the IRS say implements President Trump’s executive orders, would cover admissions, scholarships, athletics and other programs at as many as 18,000 institutions.

Schools could still use race-neutral criteria, such as family income, geographic location, first-generation status, individual hardship, military family status, or academic achievement to support disadvantaged students, with rules taking effect in 2027. "Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,” said the Treasury.

Trump Reshapes Federal Education Role In March 2025, Trump ordered steps to dismantle the U.S.

Department of Education and return education authority to the states, but fully abolishing the department still requires congressional approval.

In June this year, the administration is further shrinking the Education Department by shifting civil rights enforcement and student privacy functions to the Justice Department and special education oversight to Health and Human Services.

Officials say the changes will reduce bureaucracy, while critics fear fragmented oversight could weaken student protections, particularly for children with disabilities.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

Read Also: Trump Administration Eyes New Passport Rule Requiring Parents to Prove Citizenship Status: Here's What It Means Photo courtesy: Shutterstock