Read twice and referred to the Committee on Finance.
This bill amends Title 1, U.S. Code by adding a new section stating that, for purposes of any Federal law, rule, or regulation, an exemption from Federal income tax for organizations described in section 501(c) or 501(d) of the Internal Revenue Code or organizations described in section 401(a) shall not be treated as "Federal financial assistance," unless a statute explicitly says otherwise. It adds a clerical table-of-contents entry and includes a rule of construction clarifying that the change does not retroactively imply past tax exemptions were Federal assistance.
Progressives emphasize threats to civil-rights enforcement and accountability
Relative to its intended legislative type, this bill is a concise, legally framed definitional amendment that clearly states its objective and specifies the covered Internal Revenue Code categories.
This bill amends Title 1, U.S. Code by adding a new section stating that, for purposes of any Federal law, rule, or regulation, an exemption from Federal income tax for organizations described in section 501(c) or 501(d) of the Internal Revenue Code or organizations described in section 401(a) shall not be treated as "Federal financial assistance," unless a statute explicitly says otherwise.
It adds a clerical table-of-contents entry and includes a rule of construction clarifying that the change does not retroactively imply past tax exemptions were Federal assistance.
Low fiscal impact and technical scope aid enactment, but ideological sensitivity around charity regulation and lack of compromise features reduce odds.
Relative to its intended legislative type, this bill is a concise, legally framed definitional amendment that clearly states its objective and specifies the covered Internal Revenue Code categories. It establishes a broad exclusion rule with a non-retroactivity provision but provides minimal implementation detail, fiscal acknowledgment, or handling of edge cases.
Progressives emphasize threats to civil-rights enforcement and accountability
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize threats to civil-rights enforcement and accountability
Likely opposed.
They would view this as removing a pathway for applying anti-discrimination and accountability requirements to organizations that benefit from tax-exempt status.
They would worry it narrows enforcement tools for civil-rights and program-integrity protections.
Mixed but cautious.
They will appreciate definitional clarity and reduced regulatory uncertainty, while worrying the change could be used to evade legitimate accountability.
They would seek narrowly tailored safeguards to protect civil-rights enforcement and program integrity.
Supportive.
They will see the bill as protecting charities and religious organizations from being recharacterized as federal assistance recipients solely because of tax-exempt status.
It is framed as limiting federal overreach and protecting associational and religious freedom.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Low fiscal impact and technical scope aid enactment, but ideological sensitivity around charity regulation and lack of compromise features reduce odds.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize threats to civil-rights enforcement and accountability
Low fiscal impact and technical scope aid enactment, but ideological sensitivity around charity regulation and lack of compromise features…
Relative to its intended legislative type, this bill is a concise, legally framed definitional amendment that clearly states its objective and specifies the covered Internal Revenue Code categories. It establishes a bro…
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