WASHINGTON — The U.S. Conference of Catholic Bishops has asked the Internal Revenue Service to add explicit religious-liberty safeguards to a proposed federal antidiscrimination regulation affecting tax-exempt private schools.

The proposed rule would withdraw tax-exempt status from private elementary schools, secondary schools, colleges and universities that take race or ethnic background into account in admissions, financial aid, scholarships or other opportunities. The IRS has closed its public-comment period on the proposal.

In comments submitted Nov. 2, the bishops said protections for religious institutions appear in the proposal’s preamble but are absent from the regulatory text itself. The Association of Catholic Colleges and Universities and The Catholic University of America joined the bishops’ submission.

Requested protections

The USCCB asked the IRS to incorporate religious-liberty language directly into the rule and to delete the word “solely” from the proposed text. The bishops also urged the agency to address both the First Amendment and the Religious Freedom Restoration Act in the preamble and the regulation.

The comment requested language making clear that a school’s sincerely held religious beliefs would not, by themselves, constitute a violation. It also asked the IRS not to second-guess a religious school’s doctrine when applying the rule.

The bishops further requested an opportunity for private schools to remedy a violation before the IRS takes enforcement action affecting their tax-exempt status.

Catholic higher education developments

Separately, the University of Providence in Great Falls, Montana, said it will end operations after the 2026-2027 academic year, citing financial difficulties it said could not be resolved. The Catholic institution said declining enrollment and other financial pressures had led it to revise academic offerings, cut operating costs and seek new sources of enrollment and revenue.

Caroline Goulet, the university’s president, said, “We recognize the grief and uncertainty this decision will bring to students, families, employees, alumni and the Great Falls community.” The university said it would assist students seeking to transfer elsewhere.

At the University of Notre Dame, the Global Saints Initiative is scheduled to begin in 2027. Iconography representing saints from five continents and nine countries is planned for installation at the Basilica of the Sacred Heart in January 2027.

Father Pete McCormick, CSC, Notre Dame’s assistant vice president for campus ministry, said he was grateful for the chance to share accounts of holiness with visitors to the basilica.

Category: Bishops