New Delhi, Sept. 3 -- The US Department of the Treasury and the Internal Revenue Service (IRS) have proposed on Thursday (September 3) new regulations that could strip private schools of their federal tax-exempt status if they engage in racial discrimination.

The proposal, announced under President Donald Trump's administration, would target private educational institutions that adopt, maintain or enforce policies that discriminate based on race, colour, or national or ethnic origin.

Treasury Secretary Scott Bessent said the proposed rules are aimed at ensuring that racial discrimination has no place in American education. He argued that schools cannot avoid the restrictions by describing race-based preferences as "equitable," "inclusiv...