Tax penalties on groups that take foreign money and give to politics.

What it does

This bill punishes groups that take money from people born in other countries. If those groups also give money to politics, they face penalties. The first offense costs 100% of the gift as a penalty. The second offense costs 200%. The third offense costs 200% plus loss of tax status for two years. Groups can trust what donors say about where they are from. Groups do not have to trust them if they know the donor lied.

Who it affects

Tax-exempt groups and charities are affected. Groups that take money from people born in other countries and also give to politics face penalties. Groups with staff or board members from other countries face higher risk.

One thing to notice

The law penalizes groups for any money from other countries in the past two years. This is true even for small gifts. Groups must then stop giving to politics or face penalties.

From the analysis of the bill text, linked under Primary records below.

Where it stands

1 cosponsor: 1 Republicans.

• Jul 18, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 18, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
• Jul 22, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jul 22, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported by the Yeas and Nays: 23 - 16”

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

Words to know

• tax-exempt — An organization that does not have to pay federal income tax.
• tax status — The official right of an organization to not pay federal income tax.
• offense — A violation of a rule or law.