No Tax Exemptions For Terror Act
- Sponsor
- Rep. Roy, Chip [R-TX-21]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 31, 2025
Bottom line
The bill aims to revoke the tax-exempt status of CAIR and other organizations deemed to have ties to terrorism, potentially impacting their financial operations and public perception.
What it actually does
This bill amends the Internal Revenue Code of 1986 to explicitly state that the Council on American-Islamic Relations (CAIR) and any other organization found to have ties to terrorism or terrorist organizations shall not be treated as described in section 501(c)(3). This action would revoke their tax-exempt status, making them subject to federal income tax. The change would apply to taxable years ending after the date of the bill's enactment.
Proponents argue
Proponents argue that organizations with alleged ties to terrorism should not benefit from tax-exempt status, as this effectively provides a subsidy to entities that may undermine national security or support harmful ideologies. They contend that revoking 501(c)(3) status is a necessary step to prevent such organizations from receiving public benefits and to ensure that taxpayer dollars do not indirectly support groups with problematic associations.
Opponents contend
Opponents would likely argue that the bill is a politically motivated attack on specific civil rights organizations, potentially infringing on First Amendment rights of association and free speech. They might contend that the bill lacks due process for determining 'ties to terrorism' and could lead to arbitrary targeting of groups based on political disagreements rather than concrete evidence of illegal activity. Critics may also raise concerns about the precedent of legislatively singling out specific organizations for tax treatment.
The bill text is very short and straightforward, allowing for quick comprehension of its direct provisions.
Section 2(a)
Revocation of 501(c)(3) Status for CAIR and Similar Organizations
This section mandates that the Council on American-Islamic Relations (CAIR) and any other organization determined to have connections to terrorism or terrorist groups will no longer qualify for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. This means such organizations would be subject to federal income tax on their revenues, losing the benefits associated with charitable status, such as tax-deductible donations. The provision applies to taxable years ending after the date of enactment.
Supporters argue
Supporters argue this provision directly addresses concerns about organizations allegedly supporting or having ties to terrorism by removing their tax benefits. They believe it aligns U.S. tax policy with national security interests, ensuring that no organization with such ties receives an indirect government subsidy.
Critics contend
Opponents would contend that this provision is an unconstitutional bill of attainder, singling out a specific organization for punishment without judicial trial. They would also argue that the phrase 'any other organization found to have ties to terrorism' is vague and lacks due process, potentially allowing for politically motivated targeting and chilling free speech and association.
Tradeoffs
The provision balances national security concerns and the desire to prevent indirect support for problematic organizations against constitutional principles of due process, freedom of association, and the prohibition against bills of attainder. It also raises questions about the appropriate role of Congress versus the judiciary in determining an organization's status.