Technical corrections and procedural updates only. The reported version (v2) includes updated legislative status information, such as an additional sponsor and reporting details. The substantive text of the bill remains identical to the introduced version (v1), with no policy changes.
Stopping Foreign Influence in Elections Act of 2026
- Sponsor
- Rep. Malliotakis, Nicole [R-NY-11]
- Committees
- Ways and Means Committee (primary)
- Last action
- Aug 27, 2026
Bottom line
The bill establishes new IRS penalties and potential loss of tax-exempt status for organizations that act as conduits for foreign national contributions to U.S. political entities.
What it actually does
This bill amends the Internal Revenue Code of 1986 to impose significant financial penalties on certain tax-exempt organizations that make contributions to political entities if those organizations have received contributions or gifts from foreign nationals within a two-year testing period. It also establishes a tiered penalty system, culminating in the revocation of an organization's tax-exempt status for two years after a third such violation. The bill aims to deter the indirect flow of foreign money into U.S. elections.
Proponents argue
Proponents argue this bill strengthens election integrity by closing a critical loophole that allows foreign money to indirectly influence U.S. political campaigns through tax-exempt organizations. They contend it provides a necessary and robust deterrent to protect the democratic process from external interference, ensuring that U.S. elections are decided by U.S. citizens.
Opponents contend
Critics might argue that the bill could inadvertently burden legitimate non-profit organizations that receive international funding for non-political activities, leading to excessive compliance costs or a chilling effect on free speech and international philanthropy. Concerns could also be raised about the broad definition of 'political entity' and the potential for overreach or difficulty in definitively ascertaining the nationality of all donors under the 'should have known' standard.
The bill is relatively short and its core provisions are understandable with careful reading, making it accessible for an informed reader to evaluate within a reasonable timeframe.
Section 1
Short Title
This section formally names the Act as the 'Stopping Foreign Influence in Elections Act of 2026.' This title provides a clear and concise way to refer to the legislation and indicates its primary purpose, which is to address foreign influence in electoral processes.
Supporters argue
Designating a clear short title is standard legislative practice that enhances the bill's identifiability and communicates its core objective to the public and policymakers.
Critics contend
No specific opposition is typically raised against short titles, as they are primarily for identification and do not contain substantive policy.
Tradeoffs
None, this is a procedural provision.
Section 2(a), adding new IRC Section 6720D(a)
Penalty for Disqualified Political Committee Contributions
This provision establishes a new penalty within the Internal Revenue Code. It mandates that any 'specified tax exempt organization' that makes a 'disqualified political committee contribution' must pay a penalty equal to twice the amount of that contribution. This aims to create a significant financial disincentive for organizations to act as conduits for foreign money in political campaigns.
Section 2(a), adding new IRC Section 6720D(b)
Definition of Disqualified Political Committee Contribution
This section defines what constitutes a 'disqualified political committee contribution.' It refers to any contribution made by a 501(c) organization to a 'political entity' (which includes political committees and 501(c)(4) organizations) if that 501(c) organization received a contribution from a 'foreign national' within the preceding two years. A key clause allows organizations to rely on a donor's representation of nationality unless they knew or 'should have known' it was false.
Section 2(a), adding new IRC Section 6720D(c)
Scope of Organizations Subject to Penalties
This section defines a 'specified tax exempt organization,' limiting the application of the new penalties. Only 501(c) organizations that are required to file an annual return (typically Form 990) and meet certain financial thresholds – either gross receipts exceeding $200,000 or assets exceeding $500,000 in the preceding taxable year – are subject to these penalties. This exempts smaller non-profits from the new compliance burden.
Section 2(b), adding new IRC Section 501(s)
Tiered Penalties and Loss of Tax-Exempt Status
This section establishes a progressive penalty system for organizations making 'disqualified political committee contributions.' The first violation incurs a tax equal to 100% of the contribution, the second a 200% tax, and any subsequent violation results in a 200% tax plus the revocation of the organization's tax-exempt status for a two-year period. A 'clean slate' rule allows the count of violations to reset if an organization goes two years without making a disqualified contribution.
The amendments made by this Act, including all new penalties and definitions, will apply to contributions made after the date which is 1 year after the date of the enactment of this Act.
Section 2(d)
Why it matters:This is standard legislative practice to place effective dates at the conclusion of the substantive text. The use of a relative date provides flexibility for the legislative calendar.
Case for: Proponents would argue that this one-year delay provides a necessary grace period for specified tax-exempt organizations to understand the new compliance requirements, implement new internal processes for donor vetting, and adjust their political contribution policies before the penalties take effect. This reduces the risk of inadvertent violations due to lack of awareness or preparation.
Case against: Critics might contend that if foreign influence in elections is an urgent issue, a one-year delay in implementing these new safeguards could allow continued problematic contributions to flow during that period, undermining the immediate effectiveness of the bill's stated purpose.
Estimated impact: Delays the enforcement of significant penalties for a full year, potentially allowing existing indirect foreign contributions to political entities to continue during that interim period without facing the new sanctions. It also provides a substantial window for affected organizations to adapt.