A federal court of appeals ruling last month protects nonprofits from federal overreach in the context of Title IX regulations.
The ruling means private schools cannot be subject to Title IX solely because of their status with the IRS. The ruling overturned a dangerous decision that could have affected homeschools that are considered private schools in some states, and HSLDA is pleased with the outcome.
In July 2022, a federal district court in California held that a private Christian school that had received Paycheck Protection Program loans during the COVID-19 pandemic, and was tax exempt, may also be subject to Title IX. You can read the district court's decision here.
Later that same week, a federal district court in Maryland concluded that a private K-12 Christian school was subject to Title IX solely because a 501(c)(3) "Tax exemption qualifies as federal financial assistance under Title IX." You can read the district court's decision here.
Could another tax exemption(7) social clubs) cause an entity to be subject to Title IX? What about education tax credits, property tax credits, or even a child tax credit?
"Tax exemption is not 'Federal financial assistance.' This is not a novel concept. Indeed, since Title IX's inception over fifty years ago, it has never been applied to organizations based solely on their tax exempt status. And for good reason. Although tax exemption is a tax benefit, that does not mean it is 'Federal financial assistance' for Title IX purposes. As noted above, 'assistance' means 'aid, help, or support,' which all connotate financial grants. Tax exemption is the withholding of a tax burden, rather than the affirmative grant of funds. Thus, tax exemption is not 'Federal financial assistance.'".
With this straightforward decision based on the plain language of the law, we are optimistic that homeschool support groups, homeschool organizations, private schools, and other entities that have 501(c) status will continue to retain their autonomy from federal regulation and control.
https://hslda.org/post/title-ix-ruling-protects-homeschool-from-federal-outreach
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