Trump Administration’s Education Policy Shift: Returning Control to States and Parents

On August 24, 2026, Education Secretary Linda McMahon joined President Donald Trump in the White House’s Rose Garden to announce a significant policy change. The administration plans to reduce federal involvement in education, emphasizing the need to empower states and parents. This strategy reallocates billions from Diversity, Equity, and Inclusion (DEI) programs directly into classroom funding and offers states waivers to bypass federal bureaucracy.

In another key development, the administration proposed regulations to revoke the tax-exempt status of private schools and colleges that consider race in admissions and scholarships. The Treasury Department and Internal Revenue Service outlined these measures to address concerns of discrimination against white students. Treasury Secretary Scott Bessent stated, “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature.”

This proposal aligns with the Supreme Court’s 2023 decision in Students for Fair Admissions, which restricted race-conscious admissions policies in higher education. The rules would impact educational policies, scholarships, loans, athletics, and other school-administered programs that use race as a factor.

The Treasury estimates these changes could affect as many as 18,000 schools and 750,000 students. However, religious schools would retain the ability to select students based on religious affiliation. The proposal intends to allow schools to aid disadvantaged students through race-neutral criteria, such as income, geography, or first-generation status.

A public comment period will precede the potential implementation of the proposal, which is expected to face legal challenges. The American Association of University Professors is considering legal action, arguing that the proposal misapplies civil-rights law. AAUP President Todd Wolfson described it as an attempt to reverse the progress made by civil-rights legislation.

Since President Trump’s return to office in January 2025, the administration has targeted DEI policies in K-12 schools and higher education, focusing on race-based admissions and scholarships. Harvard University has experienced federal funding cuts and investigations due to alleged discriminatory practices. These moves represent the administration’s broader effort to reshape education policies across the nation.