Wesleyan president rejects impact of Trump tax-exempt plan

The Wesleyan president says the university will not change its programs in response to a Trump administration proposal that could remove tax-exempt status from private schools and colleges offering certain race-based benefits.

Wesleyan University President Michael Roth criticized the plan, arguing it could pressure campuses to dismantle initiatives that disproportionately assist students of color. He said the approach uses federal tax authorities to advance a political agenda and called it an overreach.

The administration contends that programs conferring benefits based on race are discriminatory, even if designed to boost diversity or address historic inequities. Officials say institutions can continue initiatives using race-neutral criteria such as income or first-generation college status.

There is uncertainty over whether the IRS has the authority to redefine racial discrimination in this context and pull an institution’s tax exemption as a result. Legal challenges are expected and could delay or block implementation.

Roth said Wesleyan does not run programs restricted to students by race. The university offers support for first-generation and low-income students, groups he noted are disproportionately students of color at the Connecticut campus.

According to Roth, losing tax-exempt status would carry serious financial repercussions for Wesleyan. He warned that some schools might preemptively scale back or scrap programs to avoid costly litigation, a trend he described as anticipatory compliance.

Wesleyan president cites potential nationwide impact

The Treasury Department and IRS estimate up to 18,000 private schools, colleges and other educational institutions could be affected by the proposal. If finalized, the rule would take effect after May 2027.

Some observers note that the proposal could become a flashpoint in the broader debate over federal power and education policy, similar to other recent disputes over campus rules and civil rights enforcement. It comes as California Jewish ancestry bill advances with Assembly vote and other measures are reshaping how identity and discrimination are defined in public policy.

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