Wesleyan President Criticizes Trump Tax-Exempt Proposal

Wesleyan University President Michael Roth says his school will not alter its programs in response to a Trump administration proposal to strip tax-exempt status from private colleges offering certain race-based benefits. Roth calls the plan an "extraordinary overreach" designed to pressure universities.

The proposal, from the Treasury Department and IRS, could affect up to 18,000 private schools and colleges. It argues that programs providing benefits based on race are discriminatory, even when aiming to promote diversity or address past discrimination. The administration says schools can continue programs based on race-neutral factors like income.

"This rule from the administration is meant to frighten universities into dismantling programs that benefit students of color," Roth told NPR's Morning Edition. He argues the plan uses the IRS to promote White House ideology.

Legal and Financial Stakes

Legal uncertainty surrounds whether the IRS can redefine racial discrimination in this way and revoke tax-exempt status as a result. Potential legal challenges could delay or block the rule from taking effect. If finalized, it would not be effective until after May 2027.

Losing tax-exempt status would carry severe financial consequences for an institution like Wesleyan. Roth also warned of "anticipatory compliance," where schools preemptively change programs to avoid costly legal fights.

"People are changing their programs because they don't want to get into the legal battle, which costs millions of dollars," Roth told NPR's Steve Inskeep.

Wesleyan's Program Focus

Roth stated that Wesleyan does not have programs limited solely to students based on race. The university offers support targeted at first-generation and low-income students. Roth noted these groups are disproportionately students of color at the Connecticut institution.

The administration's stance maintains that race-neutral criteria are permissible. This includes factors such as family income or whether a student is the first in their family to attend college.

Scope of the Proposed Rule

The Treasury and IRS estimate highlights the broad potential impact across the private education sector. The rule targets any private school, college, or educational institution providing benefits it defines as racially discriminatory.

Roth's criticism centers on the pressure such a rule creates, regardless of its ultimate legal standing. He frames it as a political maneuver with significant operational implications for higher education. The Wesleyan president's remarks show a growing conflict between federal policy proposals and university autonomy.