Haitian students may lose school aid under Trump proposal, advocates say

The Trump administration unveiled a proposed rule that would strip tax-exempt status from private schools and colleges offering scholarships, admissions consideration or other targeted assistance based on race or country of origin — a move that advocates say could disproportionately affect Haitian-born students.

“[The] impact will come before the rule is even finalized because this creates a chilling effect,” said Alejandra Vásquez Bauer, an education advocate with EdTrust.

“It’s not a small policy change,” she added.

The proposed regulation announced Sept. 3 aims to end what the administration officials calls “discriminatory” practices that support diversity, equity and inclusion (DEI) efforts long-maligned by right-wing conservatives. It is among a slew of policy changes the Trump administration has implemented or seeks to put in place to remove benefits and charitable support for immigrants.

Private institutions across levels targeted

In the proposed regulation unveiled by the Treasury Department and Internal Revenue Service, officials explained that a private institution would lose its 501(c)(3) tax-exempt nonprofit status if it maintains any policy that considers race or national or ethnic origin. Admissions, scholarships, loans, athletics and other school-run programs are in the category.

The rule could affect an estimated 18,000 private educational institutions nationwide, from primary schools through universities and trade schools. If finalized, the regulation would take effect for tax years beginning after May 31, 2027.

Schools could still provide aid using “race-neutral criteria” such as family income, geographic location, first-generation status, individual hardship, military family status or academic achievement, the officials said in announcing the proposal. Treasury Secretary Scott Bessent said in a statement that renaming race-conscious programs as “equitable” or “diversity-enhancing” would not shield them from the rule. 

The Congressional Black Caucus, chaired by Rep. Yvette D. Clarke of New York, condemned the proposal in a statement, calling it “a discriminatory abuse of federal power” that should be challenged in court.

“This latest effort to use the power of the federal government to restrict opportunity and target programs serving our communities is exactly why this election is so critical,” the Caucus said, referring to the upcoming midterm elections Nov. 3. 

Democrats would work to “hold this administration accountable” and “protect access to higher education,” Clarke added that — if they retake the House majority.

What it could mean for Haitian students

Vásquez Bauer, a former teacher in Miami-Dade County, said the proposal’s focus on national and ethnic origin puts Haitian and Haitian American students at direct risk as many of them are already navigating language barriers, immigration status and economic hardship. She said eliminating race-conscious aid would narrow opportunities to only those who can already afford it.

“My Haitian American students were incredible students with dreams and goals,” Vásquez Bauer said. “This proposal limits those dreams to only those who can afford to attend and erases their identity and the barriers their families have navigated in order to qualify for help to attend higher educational institutions.”

Income-based aid alone could not substitute for race-conscious support, she said, since the former does not account for the full complexity of the discriminatory barriers that can depend on ethnic background or immigration history.

For now, the greatest risk may come before any legal challenge is resolved, Vásquez Bauer explained. Fearful of IRS scrutiny or losing tax-exempt status altogether, she said colleges could begin quietly rolling back scholarships and support programs well ahead of the effective date.

“This proposal is just a sweeping attempt by the Trump administration to weaponize federal power against colleges that are trying to expand opportunities for students who have historically been shut out of higher education,” Vásquez Bauer said. 

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