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Treats certain domestic tax-exempt organizations (501(c) entities) that receive money or other value from specified foreign "countries of concern" as agents of a foreign principal under the Foreign Agents Registration Act (FARA). Those organizations become subject to FARA registration and reporting requirements, with definitions and coverage criteria spelled out and existing FARA sections renumbered. The changes take effect 30 days after enactment. The main effects are new definitions of covered foreign principals and covered organizations, new registration and disclosure duties for affected nonprofits, and application of FARA enforcement to those organizations.
Redesignate existing sections 12, 13, and 14 of FARA as sections 13, 14, and 15, respectively.
Insert a new Section 12 titled 'Applicability to certain tax-exempt organizations receiving funding from foreign principals of foreign countries of concern.'
For purposes of FARA, an organization that meets the description in subsection (b) is defined to be an agent of a foreign principal.
Section 3(h) of FARA shall not apply to an organization described in paragraph (1) or (2) of subsection (b) (i.e., the waiver in 3(h) does not apply to those organizations).
Section 3(d)(3) of FARA shall apply to an organization described in subsection (b) even if the organization solicits and collects funds and contributions outside the United States (a specific waiver for humanitarian solicitations outside the U.S.).
Who is affected and how: Domestic tax‑exempt organizations (501(c) entities) that accept money or other value from one or more of the statute’s defined "foreign countries of concern" or other covered foreign principals are directly affected. These organizations will need to determine whether incoming funds or other transfers trigger coverage, register under FARA, and file the required disclosures. That will create administrative burdens: tracking source funds, compiling disclosure information, possibly modifying fundraising practices, and allocating staff or legal resources to compliance. Advocacy groups, cultural organizations, faith‑based groups, educational or exchange programs, and other nonprofits that routinely receive foreign gifts, grants, contracts, or in‑kind support from the identified countries could be especially affected.
Government and enforcement: The Department of Justice (which administers FARA) will have expanded oversight responsibilities for these additional covered entities and will apply FARA enforcement tools where registration or disclosure is incomplete. Courts could see litigation testing the statute’s coverage (e.g., First Amendment or statutory-interpretation challenges), which may affect enforcement timing and scope.
Broader effects: The measure aims to increase transparency about foreign influence through nonprofit funding, but it could also chill some lawful international partnerships or foreign donations if organizations choose to avoid the compliance burden or exposure to enforcement. International diplomacy and nonprofit foreign engagement may be influenced if affected organizations restrict or change their relationships with the specified foreign sources. Because the effective date is 30 days after enactment, affected organizations have limited time to evaluate and adapt.
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Read twice and referred to the Committee on Foreign Relations.
Introduced July 16, 2025 by Theodore Paul Budd · Last progress July 16, 2025
Read twice and referred to the Committee on Foreign Relations.
Introduced in Senate