Bishops Press IRS to Shield Faith in School Rule
Catholic colleges joined the filing as comments closed, warning that reliance on a brief preamble leaves mission schools exposed to federal scrutiny.
On November 2, 2026, the U.S. Conference of Catholic Bishops submitted a public comment urging the Internal Revenue Service to harden religious-liberty protections in a proposed rule on racial nondiscrimination for private schools. The Association of Catholic Colleges and Universities and The Catholic University of America joined the filing.
The proposed regulation would strip tax-exempt status from private K-12 schools, colleges, and universities that consider a person’s race or ethnic background in admissions, financial aid, scholarships, or other opportunities. The IRS closed its public comment period.
Preamble Versus the Rule Itself
The preamble states that the rule would not stop private religious schools from keeping their religious missions and that they may use selection criteria based on religious affiliation. The bishops warned, however, that this assurance does not appear in the regulatory text itself.
They also flagged language allowing selection criteria only if based “solely on religion and not on shared ancestry or ethnic characteristics.” That phrasing, they said, could bar “religiously motivated programs addressing ethnoreligious identity and community needs.”
Concrete Changes Sought Before Finalization
Before any final rule is approved, the bishops ask the IRS to place explicit religious-liberty language in the regulation, not merely the preamble; to drop the word “solely” from the contested clause; and to address federal protections for religious schools — including the First Amendment and the Religious Freedom Restoration Act — in both the preamble and the rule.
They further request that IRS personnel be directed not to second-guess a religious school’s doctrine, that the rule state clearly that sincerely held religious belief does not violate it, and that private schools receive a period to correct any violation before enforcement action begins.
The joint comment underscores the Church’s longstanding insistence that Catholic institutions must be free to form students according to the faith without jeopardizing the charitable and educational status long recognized under civil law. By seeking clearer text rather than relying on interpretive preamble language alone, the bishops aim to secure durable space for religious mission amid heightened federal scrutiny of admissions and aid practices.