Sponsor
William Francis Hagerty
Senator · R-TN
Senator · R-TN
The bill strengthens IRS authority to enforce tax-exempt rules (protecting organizations that avoid aiding undocumented immigration) but does so at the cost of higher compliance burdens for charities, reduced humanitarian services for undocumented people, and increased due-process concerns for beneficiaries.
Nonprofit organizations that avoid assisting undocumented immigrants will face less scrutiny and the IRS has clearer authority to deny or revoke tax-exempt status for groups that aid undocumented immigration, strengthening enforcement of tax-exempt rules.
Nonprofit charities that serve undocumented people will face higher risk of losing tax-exempt status if they cannot perfectly verify beneficiaries' immigration status, threatening the viability of some organizations.
Undocumented people and the communities that rely on them may receive less food, shelter, medical care, and other humanitarian services because charities could be deterred from serving vulnerable undocumented populations.
Recipients lacking documentation could be pushed into immigration determinations for eligibility decisions, raising due-process and civil‑liberties concerns about how benefits and services are decided and enforced.
Based on analysis of 2 sections of legislative text.
Narrows 501(c)(3) eligibility by denying tax-exempt status to organizations that routinely provide material support to individuals they know or should know are unlawfully present in the U.S.
Changes the tax code to make some charities and nonprofits ineligible for 501(c)(3) tax-exempt status if they engage in a pattern or practice of providing financial help, services, or other material support to people they know or reasonably should know are unlawfully present in the United States. The change takes effect on the date the law is enacted and also includes a small reorganization of existing wording in the statute.
Introduced February 10, 2025 by William Francis Hagerty · Last progress February 10, 2025