Education Secretary McMahon Announces New Policy on School Management
In an ambitious move to reshape the education landscape, Education Secretary Linda McMahon, along with President Donald Trump, unveiled a plan aimed at shifting power back to states and parents from the federal government. This announcement took place on August 24, 2026, in the Rose Garden at the White House. The policy seeks to redirect significant funding away from diversity, equity, and inclusion (DEI) programs and into classrooms, allowing states to sidestep federal red tape.
In conjunction with this, the Trump administration put forth a proposal on Thursday to revoke tax-exempt status for private schools and colleges that consider race in their admission processes or offer race-based scholarships. This appears to be another step by the federal government to eliminate diversity initiatives in education.
According to the Treasury Department and Internal Revenue Service, the intent is to combat what they view as discrimination that favors students of color over white students. Treasury Secretary Scott Bessent expressed in a statement that merely rebranding race-based preferences as being equitable does not alter their inherently discriminatory nature.
This proposal follows the Supreme Court’s 2023 decision in Students for Fair Admissions, which restricted most race-conscious admission policies in higher education. Under the suggested regulations, any admissions policies, educational strategies, scholarships, loans, or athletics that factor in race or ethnic background for any purpose—including redressing past discrimination—would be impacted.
The Treasury predicts that this will affect up to 18,000 educational institutions at all levels, potentially influencing around 750,000 students who might be eligible for race-oriented scholarships. Interestingly, the proposal makes exceptions for religious schools, meaning they can still select students based on religious criteria.
Moreover, the rules would allow schools to assist disadvantaged students by employing race-neutral considerations like income, geographical location, or first-generation status. The new regulations are currently open to public comments but are likely to face legal challenges if implemented.
The American Association of University Professors, which has previously taken legal action against federal funding cuts, is reportedly contemplating a lawsuit against this proposal. Their president, Todd Wolfson, remarked that this is not a neutral enforcement of civil rights law, but rather an active attempt to reverse protections that have been in place for decades. For many years, federal policies acknowledged that efforts to dismantle entrenched racism are distinct from those meant to maintain it.
Since President Trump returned to office in January 2025, the administration has been focused on dismantling DEI policies within both K-12 and higher education. They’ve also targeted various academic institutions regarding issues like race-based admissions and allegations of antisemitism on campuses.
Trump has particularly aimed at Harvard University, imposing funding cuts, initiating investigations, and threatening its tax-exempt status. As this story develops, it will be important to watch how communities and educational institutions respond to these sweeping changes and proposals.
