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Read twice and referred to the Committee on Finance.
Introduced September 17, 2025 by Thomas Bryant Cotton · Last progress September 17, 2025
Strips federal tax-exempt status from most charities, social welfare groups, and trade associations if any member of their board of directors is a citizen or national of a specified "covered nation." The rule applies to organizations described under 501(c)(3) (except churches), 501(c)(4), and 501(c)(6) and takes effect for taxable years beginning after enactment.
Organizations subject to this rule would need to ensure no board member is a citizen or national of a covered nation to maintain tax-exempt status, or face loss of exemption and related tax consequences.