Congress targets Muslim-American group for tax penalty without defining 'terrorism' or due process.

What it does

This bill strips tax-exempt status from the Council on American-Islamic Relations (CAIR) and any organization the bill deems to have 'ties to terrorism or terrorist organizations.' It does not define what constitutes such ties, who determines them, or what process applies. Organizations losing exemption would owe federal income tax and lose the ability to offer donors tax deductions.

Why we flagged it

The bill's operative mechanism is not a general tax policy but a direct financial penalty imposed on a named organization and undefined others, based on undefined criteria, with no evidentiary standard or judicial review. It functions as legislative punishment, not taxation.

What the text implies

• No definition of 'ties to terrorism' — could encompass charitable work, political speech, or association with any group later labeled terrorist by executive action, creating chilling effect on lawful advocacy.
• No process for organizations to challenge the determination or appeal — tax status is stripped retroactively to enactment with no hearing, creating permanent financial liability without remedy.
• Establishes precedent for Congress to strip tax exemption from named organizations based on political or religious identity rather than conduct, potentially enabling future targeting of other disfavored groups.
• Donors to affected organizations lose tax deduction retroactively, creating surprise tax liability for past charitable contributions and deterring future support for any organization Congress labels.
• IRS enforcement mechanism is unclear — bill does not specify how IRS determines which orgs have 'ties to terrorism' or whether determination is delegated to executive agencies without statutory standard.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill creates a mechanism to strip constitutional rights (tax status, due process) from named and undefined organizations based on undefined criteria ('ties to terrorism') with no judicial review, evidentiary hearing, or appeal process. This establishes a precedent for executive/legislative targeting of disfavored groups without due process, undermining rule of law and First Amendment protections for all citizens.

Named in the bill

Council on American-Islamic Relations (CAIR), Internal Revenue Service (IRS), House Committee on Ways and Means, Internal Revenue Code Section 501(c)(3)

Where it stands

20 cosponsors: 20 Republicans.

• Oct 31, 2025 — Introduced · Congress.gov: “Introduced in House”
• Oct 31, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Dec 2025 to Dec 2025. Those filings disclosed $10,000 in lobbying spend. A filing names 7 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Chip Roy, the sponsor, reported $68,100 in PAC receipts in the 2026 cycle.

• Act for America — $10,000 on 1 filing

Lobbying Disclosure Act filings through Dec 5, 2025. A filing shows who paid to lobby on a bill it names, not what changed.