Court Rules
All enforcement actions
CoalitionLow RiskMultistate

Minnesota AG coalition opposes proposed IRS tax-exemption rule

Internal Revenue ServiceOctober 30, 2026Minnesota Attorney General

Summary

Minnesota Attorney General Keith Ellison co-led a multistate coalition opposing a proposed IRS rule that could deny or revoke tax-exempt status for schools with racial nondiscrimination policies. The coalition argued the proposal would undermine civil-rights and equal-protection principles, burden donors and states, and violate the Administrative Procedure Act; the press release describes opposition, not an enforcement penalty or remedy.

Contract Impact

This is not a privacy enforcement action, but educational institutions and charities should review donor agreements, scholarship-fund administration agreements, and grant documents for clauses preserving donor intent and specifying how restricted gifts are handled if eligibility rules or tax-exempt requirements change. Review nondiscrimination representations, change-in-law and compliance provisions, and procedures for consulting donors before modifying or redirecting charitable funds; vendors and customer agreements are not directly implicated by the described action.

Contract Search Terms

donor intent clauserestricted charitable giftscholarship eligibility criterianondiscrimination policytax-exempt status representationcharitable funds administrationchange-in-law provisionregulatory compliance cooperation

Laws Cited

federal Administrative Procedure Actcivil rights lawequal-protection principlesLoper Bright Enterprises v. Raimondo

Violation Types

Entity Details

Entity

Internal Revenue Service

Industry

Other

Multistate Coalition

California Attorney GeneralMassachusetts Attorney GeneralNew York Attorney GeneralColorado Attorney GeneralConnecticut Attorney GeneralDelaware Attorney GeneralDistrict of Columbia Attorney GeneralIllinois Attorney GeneralMaine Attorney GeneralMaryland Attorney GeneralMichigan Attorney GeneralNevada Attorney GeneralNew Jersey Attorney GeneralNew Mexico Attorney GeneralOregon Attorney GeneralRhode Island Attorney GeneralVermont Attorney GeneralVirginia Attorney GeneralWashington Attorney General

Official Sources

Source Evidence

Entity Name
"proposed Internal Revenue Service (IRS) rule"
Event Date
"20261030-multi-state-comment-opposing-irs-nprm-re-tax-exempt-status-final.pdf"
Laws Cited
"federal Administrative Procedure Act"
Laws Cited
"civil rights law and core equal-protection principles"
Laws Cited
"under Loper Bright Enterprises v. Raimondo (2024) 603 U.S. 369."
Violation Description
"The proposed rule would allow the IRS to deny or revoke the tax exemption of certain K-12 schools, colleges, universities, or professional schools with policies that the Trump Administration politically disfavors."

Related Enforcement Actions

OR

Internal Revenue Service

Environmental and consumer protection enforcement action. Oregon Attorney General Dan Rayfield led a coalition of 16 states in filing an amicus brief supporting a lawsuit against the IRS. The challenge contests a new IRS rule that removes a key pathway (5% investment test) for wind and solar projects to qualify for federal clean energy tax credits. The states argue the rule is unlawful, arbitrary, will increase energy costs for families and businesses, and undermine state clean energy goals and investments.

MN

Affordable Home Remodeling, LLC

$518K

The Minnesota Attorney General obtained a judgment against Ryan David Pietron and Affordable Home Remodeling, LLC, for deceiving homeowners, taking payment for renovation work that was not performed, and misrepresenting Pietron’s contractor licensing status. The judgment permanently bars them from Minnesota’s residential construction industry and orders restitution, civil penalties, and costs totaling $1,069,000.

MN

Trump Administration

Minnesota Attorney General Keith Ellison and the attorneys general of New Mexico, Oregon, and Washington sued to block the federal government from conditioning Medicaid funding on states implementing new work requirements. The lawsuit argues that threatening to withhold all Medicaid funding is unconstitutional coercion; the press release describes requested relief, not a court ruling or penalty.

MN

U.S. Department of Justice

A federal court ruled that the Trump Administration unlawfully conditioned public-safety grants on states’ cooperation with immigration enforcement and permanently blocked implementation or enforcement of those conditions. Minnesota Attorney General Keith Ellison and a coalition of 23 states brought the lawsuit; the action concerns grant conditions, not privacy violations.

MN

Minnesota Attorney General's Office

The Minnesota Attorney General issued an alert urging Medicare beneficiaries to review coverage options after insurers reduced or discontinued Medicare Advantage plans in Minnesota. The release describes no privacy enforcement action, monetary penalty, or remedy.

MN

Donald Trump

Minnesota Attorney General Keith Ellison joined a coalition of 17 attorneys general in filing an amicus brief supporting New York’s authority to pursue a civil fraud case against Donald Trump and his business associates. The brief was filed in an appeal; the press release does not report a ruling, penalty, or remedy, and does not describe a privacy enforcement action.