Bill · S. 3554· Senate(119-S-3554)
A bill to amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
- Introduced
- 12/17/2025
- Last activity
- 12/17/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- John Cornyn
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to strip the tax-exempt status from organizations that the government designates as terrorist supporting organizations. Under the bill, a terrorist supporting organization is defined as any group that provided material support or resources to a terrorist organization within a three-year period. The legislation outlines a notice procedure and a 90-day cure period, which gives accused organizations a chance to respond, fix the issue, or challenge the determination in court. It also provides rules for the Secretary to rescind the designation if mistakes were made or if the situation is resolved. Finally, the bill allows for administrative review and gives United States district courts exclusive jurisdiction to review these designations.
Yes
Does this give the federal government more power?+3
The bill grants federal authorities new powers to designate and revoke the tax-exempt status of terrorist supporting organizations.
Does this protect the right to fair treatment by the courts?+2
The legislation provides notice procedures, a 90-day cure period, and judicial review options for accused organizations.
Does this tighten control of the border?+2
The bill enhances national security measures by targeting organizations that provide material support to terrorists.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 1(a) adds paragraph (8)(B) to the Internal Revenue Code, which targets and penalizes groups that provide support to terrorists by stripping them of their tax-exempt status. This protects the American people by cracking down on organizations that back dangerous groups.
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Section 1(a) adds paragraph (8)(C)(ii) to the Internal Revenue Code, giving organizations a 90-day notice and cure period. This provides a fair chance for groups to prove they did not provide support, try to get the resources back, or challenge the government's claims before losing their tax-exempt status.
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Section 1(a) adds paragraph (8)(B)(ii)(II) to the Internal Revenue Code, explicitly stating that humanitarian aid approved by the Office of Foreign Assets Control is not considered material support. This ensures that groups providing legitimate humanitarian help are protected under the law.
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Section 1(a) adds paragraph (8)(F) to the Internal Revenue Code, granting United States district courts exclusive jurisdiction to review designations made by the Secretary. This ensures that officials we vote for and their agencies can be held accountable in court if they make a mistake.
Potential Negative Impacts for People
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Section 1(a) adds paragraph (8)(B) to the Internal Revenue Code, which allows the government to designate and punish organizations that provided material support or resources in excess of a de minimis amount. For individuals involved with groups that mistakenly or unintentionally crossed this threshold, this could lead to the loss of tax-exempt status and operational burdens.
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Section 1(a) adds paragraph (8)(C)(i)(III) to the Internal Revenue Code, allowing the Secretary to withhold a description of the material support from the notice if it conflicts with national security or law enforcement interests. This could make it harder for an organization to properly defend itself during the cure period without filing a court complaint.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Increases Federal Power+3Improves Due Process+2
- Social Issues And Justice
- Improves Border Security+2
- 2/3/2026
- 1 Cosponsor added.
- 12/17/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Shelley CapitoRepublican · West Virginia
Tim SheehyRepublican · Montana