Read twice and referred to the Committee on Finance.
This bill amends Internal Revenue Code section 501(c)(3) to make organizations ineligible for tax-exempt status if they engage in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals the organization knows or reasonably should know are unlawfully present in the United States. The provision clarifies it does not require organizations to verify citizenship or immigration status, and it exempts religious organizations from having to act against their religious beliefs.
Progressives emphasize humanitarian chill and profiling risks
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that adds a disqualification for 501(c)(3) status based on providing support to individuals unlawfully present in the United States.
This bill amends Internal Revenue Code section 501(c)(3) to make organizations ineligible for tax-exempt status if they engage in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals the organization knows or reasonably should know are unlawfully present in the United States.
The provision clarifies it does not require organizations to verify citizenship or immigration status, and it exempts religious organizations from having to act against their religious beliefs.
The amendments take effect on enactment.
Controversial immigration-tax hybrid with vague standards, enforcement burdens, and potential legal challenges; would require broad bipartisan compromise.
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that adds a disqualification for 501(c)(3) status based on providing support to individuals unlawfully present in the United States. It states the disqualifying standard and includes limited safeguards regarding proof of status and religious belief.
Progressives emphasize humanitarian chill and profiling risks
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize humanitarian chill and profiling risks
Likely opposed.
While it nominally protects religious conscience and forbids formal verification requirements, the "knows or reasonably should know" and "pattern or practice" standards could chill humanitarian aid and immigrant services.
Mixed.
The goal of preventing abuse of tax-exempt status is reasonable, but ambiguous terms risk uneven enforcement, litigation, and harm to legitimate charitable activities unless clarified by implementing guidance.
Generally supportive.
The bill uses tax policy to discourage organizations from materially aiding people unlawfully present, reinforcing immigration enforcement and protecting taxpayer-supported exemptions.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Controversial immigration-tax hybrid with vague standards, enforcement burdens, and potential legal challenges; would require broad bipartisan compromise.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize humanitarian chill and profiling risks
Controversial immigration-tax hybrid with vague standards, enforcement burdens, and potential legal challenges; would require broad biparti…
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that adds a disqualification for 501(c)(3) status based on providing support to individuals un…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.