Sponsors
The bill aims to reduce foreign-adversary influence in U.S. nonprofits by restricting funding from listed countries and giving agencies flexibility to respond to new threats, but it risks reducing charitable resources and imposing compliance burdens, uncertainty, and potential penalties on nonprofits, donors, and beneficiaries.
Nonprofits will be less likely to receive funds from nationals of listed hostile countries, reducing the risk of foreign-adversary influence and national-security threats.
Domestic donors and organizations are encouraged to avoid funding from foreign-adversary sources, potentially reducing foreign influence in civil society.
Treasury and State gain flexibility to add countries to the list based on evolving national-security assessments, allowing targeted responses to new threats.
Low-income individuals and other beneficiaries could lose access to charitable services if nonprofits decline or lose funding because of the restrictions and penalties.
Nonprofits and their donors could face loss of tax-exempt status for accepting small or inadvertent gifts from nationals of listed countries, risking financial harm to charities.
Donors, nonprofits, and financial institutions will face increased compliance costs and legal uncertainty from screening contributors' citizenship or nationality.
Based on analysis of 2 sections of legislative text.
Denies 501(c)(3) and 501(c)(4) tax-exempt status to organizations that receive any contribution from individuals who are citizens or nationals of designated foreign adversary countries.
Introduced March 30, 2026 by Keith Self · Last progress March 30, 2026
Denies federal tax-exempt status under Internal Revenue Code section 501(a) to organizations described as 501(c)(3) or 501(c)(4) if they receive any contribution or gift from an individual who is a citizen or national of a listed "foreign adversary." The bill names several countries (China including Hong Kong and Macau SARs, Cuba, Iran, North Korea, and Russia) and lets the Treasury Secretary, with State Department consultation, add other countries on national security grounds. The rule applies to contributions or gifts received after enactment.