School Decision

Treasury, IRS propose stripping tax-exempt status from private schools with race-based policies

A proposed federal rule would target racial preferences in admissions, scholarships, and programs at private K-12 schools and colleges, citing Brown, Bob Jones, and SFFA.

On September 3, 2026, the Treasury Department and IRS proposed regulations that would strip federal tax-exempt status from private schools, including K-12 institutions, for racial discrimination in admissions, scholarships, athletics, or other programs. The 28-page proposal, titled "Racial Nondiscrimination in Private Schools," is scheduled for Federal Register publication September 4 and cites Brown v. Board of Education, Bob Jones University v. United States, and Students for Fair Admissions v. Harvard. Treasury Secretary Scott Bessent said race-based preferences remain discriminatory even when described as equitable, inclusive, or diversity-enhancing, and IRS CEO Frank Bisignano said schools that persist in such practices should expect to lose their exemption.

Public school foundations gear up for federal tax credit scholarships ahead of 2027 launch

The new federal tax credit scholarship program under P.L. 119-21 allows donations to fund K-12 expenses including public school services. With Treasury rules pending, a national nonprofit and some districts are setting up scholarship organizations to participate.

The One Big Beautiful Bill Act, signed into law July 4, 2025, created the first federal tax credit scholarship program, effective for contributions made on or after January 1, 2027. Under the new Internal Revenue Code Section 25F, individuals can claim a nonrefundable tax credit of up to $1,700 per year for cash donations to approved Scholarship Granting Organizations. The law allows scholarships to cover a broad range of expenses at public, private, or religious schools, including tuition, fees, books, supplies, tutoring, special needs services, transportation, uniforms, room and board, extended day programs, and computer technology. A new national SGO called Future School Fund has launched to help public school districts and charter networks access the program, and some districts are exploring creating their own SGOs, according to a report from FutureEd.

California Marks Second Year of Full Universal TK as Enrollment Grows but Uptake Rate Declines

Enrollment in the state's free pre-K program rose to 213,313 in 2025-26, but the share of eligible children enrolled fell to 52 percent, according to state data.

NYC cancels Adams-era T-Mobile school internet contract, shifts to $10 Verizon option

Mayor Zohran Mamdani's team is ending a T-Mobile data plan tied to a $330 million Chromebook program before the school year starts. Schools are being told to buy $10-per-student Verizon service instead.

Mayor Zohran Mamdani's administration is canceling the T-Mobile internet service portion of a Chromebook and connectivity contract signed under former Mayor Eric Adams. Chalkbeat reported that the deal carries a flat fee of about $3.5 million a month and that the internet component was expected to cost around $200 million over its term. Principals were told Thursday, Aug. 27, 2026, that T-Mobile data plans for students end Aug. 31, and were asked to identify students who still need internet and to order service through an existing Verizon program at $10 per student per month before school starts Sept. 10.

JCPS to pay $465,000 a year for i-Ready as lawsuits challenge platform's claims and data practices

Kentucky's largest district will swap MAP for i-Ready next year. Two active lawsuits question the diagnostic tool's efficacy claims and student data handling; research shows mixed results.

Jefferson County Public Schools will replace the NWEA Measures of Academic Progress with i-Ready for elementary and middle school students starting in the 2026-27 school year, a move that carries an annual price tag of roughly $465,000 and places the district at the center of two live lawsuits against the platform's maker.

Arizona Supreme Court to decide if Prop 212 survives signature challenge

The initiative to restrict Arizona's universal ESA program is roughly 10,000 signatures short under a lower court ruling. The high court is weighing whether duplicate signatures were double-counted, which could add back about 24,000 signatures and save the measure.