David Kustoff (R-TN)
To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
A Republican bill with no cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill proposes amendments to the Internal Revenue Code of 1986 regarding the tax-exempt status of organizations. It seeks to establish a process for designating "terrorist supporting organizations" based on the provision of material support or resources to certain groups. Once designated, an organization's tax-exempt status is suspended from the date of designation until the designation is rescinded. The bill outlines specific notice requirements, opportunities for organizations to cure their status, and procedures for rescinding a designation. It also establishes judicial review and administrative appeal processes for these determinations.
Yes
- Scored +3
Does this put more money into stopping terrorism?
The bill provides a mechanism to penalize organizations that provide material support to terrorist groups, aiding counter-terrorism efforts.
- Scored +2
Does this tighten control of the border?
By targeting organizations that provide material support to terrorists, the bill serves national security and border-related interests.
- Scored +1
Does this make the government pay for what it commits to?
The bill addresses the regulation of tax-exempt entities, which relates to the integrity of government revenue streams.
The opposite· 3 of 4
- Scored -5
Does this raise the taxes companies pay?
The bill effectively increases the tax burden on organizations by suspending their tax-exempt status if they are designated as terrorist supporting organizations.
- Scored -3
Would business owners be better off under this?
Non-profit and organizational leaders face the risk of losing tax-exempt status under these new criteria.
- Scored -2
Does this make what the government does easier for the public to see?
The bill allows the Secretary to withhold descriptions of material support if they are inconsistent with national security, potentially reducing transparency.
Who it would affect, and how
Potential Positive Impacts for People
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Targeting Material Support: The bill targets organizations that have provided material support or resources to specific groups in excess of a de minimis amount over a 3-year period (Section 1(a)(B)(i)).
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Protection of Humanitarian Aid: The provision ensures that humanitarian aid approved by the Office of Foreign Assets Control is not classified as material support or resources (Section 1(a)(B)(ii)(II)).
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Due Process via Notice: The Secretary is required to mail a written notice to an organization before designation, providing the name of the organization receiving support and a description of those resources (Section 1(a)(C)(i)).
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Opportunity to Rectify Status: Organizations have a 90-day window to cure their status by demonstrating they did not provide support, making reasonable efforts to return resources, or filing a court complaint (Section 1(a)(C)(ii)).
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Mechanism for Rescission: The bill provides ways to rescind a designation if the Secretary determines the designation was erroneous or if the period of suspension for the receiving organizations has ended (Section 1(a)(D)).
Potential Negative Impacts for People
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Loss of Tax-Exempt Status: Organizations designated as terrorist supporting organizations will have their tax-exempt status suspended (Section 1(a)(A)(ii)).
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Limited Information Disclosure: The Secretary may withhold descriptions of material support or resources if determined to be inconsistent with national security or law enforcement interests (Section 1(a)(C)(i)(III)).
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Restrictions on Repeated Certifications: An organization cannot use the "opportunity to cure" via written certification if they have provided a similar certification within the preceding 5 years (Section 1(a)(C)(ii)).
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Limited Judicial Transparency: In cases involving classified information, the Secretary may submit information to a reviewing court ex parte and in camera, which may limit the information available to the organization (Section 1(a)(F)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Economy And Finance
- Does this make the government pay for what it commits to? — The bill addresses the regulation of tax-exempt entities, which relates to the integrity of government revenue streams. Does this raise the taxes companies pay? — The bill effectively increases the tax burden on organizations by suspending their tax-exempt status if they are designated as terrorist supporting organizations.
- Governance And Ideology
- Does this protect the right to fair treatment by the courts? — While providing a cure period, the bill allows for ex parte and in camera judicial review of classified information, which may limit due process. Does this make what the government does easier for the public to see? — The bill allows the Secretary to withhold descriptions of material support if they are inconsistent with national security, potentially reducing transparency.
- Demographic And Interest Groups
- Would business owners be better off under this? — Non-profit and organizational leaders face the risk of losing tax-exempt status under these new criteria.
- National Security And Foreign Policy
- Does this put more money into stopping terrorism? — The bill provides a mechanism to penalize organizations that provide material support to terrorist groups, aiding counter-terrorism efforts.
- Social Issues And Justice
- Does this tighten control of the border? — By targeting organizations that provide material support to terrorists, the bill serves national security and border-related interests.
- 12/17/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
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.