The Internal Revenue Service (IRS) announced a public hearing on December 2, 2026 on its proposed rule addressing the tax-exempt status of private educational organizations under section 501(c)(3) published on September 4, 2026.
The proposed rule would provide that tax-exempt “schools,” including trade schools, colleges, universities, and professional schools, cannot adopt or enforce policies that discriminate based on race, color, or national or ethnic origin in admissions, scholarships or loans, educational policies, or other school-administered or supported programs. The prohibition would apply regardless of whether such policies are intended to remedy past discrimination or promote diversity. The proposed rule would apply for taxable years beginning after May 31, 2027. The proposal could directly affect some large jointly trusteed apprenticeship and training programs in the building trades that operate as tax-exempt educational organizations under section 501(c)(3).
The December 2, 2026 hearing will be conducted by teleconference at 10am ET. Those interested in speaking during the hearing must email publichearings@irs.gov by November 3, 2026 and include “TESTIFY Telephonically” and “REG– 119986–25” in the subject line. Those who wish to attend the hearing without speaking must register email to publichearings@irs.gov by November 30, 2026 and include “ATTEND Hearing Telephonically” and “REG–119986–25” in the subject line. Each speaker will be allotted 10 minutes for remarks. The IRS notes that it will cancel the hearing if it receives no requests to testify by November 3, 2026.