S. 2849

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to prohibit certain foreign nationals from serving on the board of directors of tax-exempt organizations.

IN THE SENATE OF THE UNITED STATES · September 17 (legislative day, September 16), 2025 · Sponsor: Mr. Cotton · Committee: Committee on Finance

SEC. 1. Short title

(a) In general
- of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: Section 501
- In general
  - (s) Prohibition on citizens of covered nations serving certain organizations
    - (1) In general
      - Any organization to which this subsection applies shall not be treated as exempt from tax if any member of the board of directors (or similar governing body) of such organization is a citizen or national of a covered nation (as defined in section 7701(a)(51)(I)(ii)).
    - (2) Organizations to which this subsection applies
      - This subsection shall apply to—
        
        any organization described in subsection (c)(3) (other than a church or convention or association of churches),
        
        any organization described in subsection (c)(4), and
        
        any organization described in subsection (c)(6).
(b) Effective date
- The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.