United States: Education

The US Treasury and IRS have proposed regulations that would eliminate longstanding exceptions allowing tax-exempt private schools to maintain race-conscious admissions and scholarship policies. Following the Supreme Court's decision in Students for Fair Admissions v. Harvard, these rules would apply to all private educational institutions, including K-12 schools not directly affected by that ruling, and could result in loss of tax-exempt status for noncompliance.

The Department of Homeland Security has proposed a controversial new rule requiring SEVP-certified schools to pay substantial fees—$70,000 for a student's first Optional Practical Training recommendation and $30,000 for each subsequent OPT application, including STEM extensions. With only a 30-day comment period and potential annual costs reaching up to $16.5 billion across nearly 2,500 affected institutions, the proposed regulation is expected to face significant legal challenges if finalized.

On September 3, 2026, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations under Section 501(c)(3) that could materially affect private education in the United States. The proposal would apply a broad nondiscrimination standard based on race, color and national or ethnic origin, with significant implications for private schools, colleges and universities seeking or maintaining tax-exempt status under Section 501(c)(3).

The U.S. Treasury Department and IRS have proposed sweeping regulations that would eliminate tax-exempt status for private schools engaging in any form of racial discrimination, including race-conscious admissions and scholarship programs previously permitted under safe harbor provisions. These proposed rules would affect approximately 18,000 private educational institutions and 750,000 students...

The Department of the Treasury and IRS have proposed regulations that would eliminate tax-exempt status for private schools maintaining race-based policies in admissions, scholarships, or programs—regardless of remedial or diversity objectives. The rule would affect approximately 18,000 tax-exempt schools, 750,000 students, and outstanding tax-exempt bonds, fundamentally reshaping how educational institutions approach diversity initiatives and donor-restricted scholarships.

The U.S. Treasury and IRS have proposed regulations that would deny tax-exempt status to private schools maintaining discriminatory policies based on race, color, or national origin, including affirmative action programs ruled unconstitutional in Students for Fair Admissions v. Harvard.

Donavon Lea, a 2L summer associate at Foley's Los Angeles office, shares his journey from Virginia Beach to UCLA Law School, including his unique experience as a CDC Public Health Law Fellow. He offers valuable insights on navigating unexpected opportunities and maintaining a learner's mindset throughout law school and early career development.

Massachusetts has enacted a new law criminalizing sexual conduct between mandated reporters and minors aged 16-17 over whom they exercise supervisory authority, carrying penalties up to 20 years in prison. The legislation addresses power imbalances in relationships between minors and adults in positions of authority such as teachers, coaches, and healthcare providers, even after formal supervisory roles have ended. Employers of mandated reporters must now update policies, training programs, and codes of con

A federal court has issued a nationwide injunction blocking the NCAA from enforcing its new five-year eligibility rule against Division I athletes who graduated high school in 2022. The ruling creates immediate compliance challenges for athletic departments as they navigate roster management, revenue-sharing caps, and potential penalties while the NCAA appeals the decision.