Dear Sagehens:
Last Thursday, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations that could revoke the federal tax-exempt status of private colleges and universities which they find discriminate because of race, color, or national or ethnic origin. If enacted, the regulations would take effect after May 31, 2027.
Pomona unequivocally opposes unlawful discrimination. We comply with applicable law and have taken the necessary steps to ensure our policies and practices align with all legal requirements. We are deeply concerned that these proposed regulations rely on an overly expansive interpretation of the Supreme Court's Students for Fair Admissions decision. The resulting policy could subject all aspects of our mission to review according to terms and standards that appear open to potentially capricious interpretation, creating uncertainty about how they could be applied and enforced.
The penalty proposed is severe. Tax-exempt status is a longstanding recognition that American not-for-profit colleges and universities serve the public good. Pomona, like other institutions throughout the nation, does so generation after generation, providing world-class education far below its actual cost. Together, we fuel economic growth, foster individual achievement, transform communities, ensure cultural preservation, develop human creativity, create knowledge and spark scientific discovery. Tax-exempt status for institutions like ours attracts generosity that supports the academic mission and helps keep more resources focused on students, encouraging private gifts and reducing our operating costs in support of teaching, scholarships, programs and the student experience.
The potential impacts of a rule change like this are societal, extending far beyond our campus. Indeed, the proposed regulations in the Treasury Department’s own estimation would affect an estimated 18,000 institutions, including private colleges and universities as well as primary and secondary, vocational, technical, graduate and professional schools.
Pomona’s mission calls us to expand opportunity, bring together people with a wide range of experiences and perspectives, and prepare our students to engage thoughtfully with a complex world. We will continue to pursue that mission fully and within the law.
We are reaching out to members of our congressional delegation to express our concerns, and Pomona will submit formal comments to the Treasury Department during the public comment period. As this process moves forward, we will remain steadfast in upholding the law, advocating for higher education and ensuring that Pomona remains a place where every member of our community can learn, contribute and thrive.
Sincerely,
Gabi