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119-s-1428119th CongressWALLET

Safeguarding Charity Act

Sponsored By: Senator Lankford, James [R-OK]

Introduced

Summary

This bill would clarify that tax exemptions under the Internal Revenue Code are not Federal financial assistance. It draws a legal line so those specific tax benefits would not by themselves trigger rules tied to federal aid.

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  • 501(c) and 501(d) organizations and entities described in 401(a): Would not have their Federal income tax exemptions treated as Federal financial assistance for purposes of other Federal laws unless a statute explicitly provides otherwise.
  • Federal program administrators and regulators: Would need to treat tax exemptions separately when evaluating eligibility, compliance, or reporting requirements that depend on Federal financial assistance.
  • Legal timing: Would include a rule of construction saying the clarification does not imply that tax exemptions were Federal financial assistance for periods before the bill's enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Stop treating tax exemptions as federal aid

This bill would say a federal income tax exemption is not "Federal financial assistance." It would apply to organizations described in section 501(c) or 501(d) and to organizations under section 401(a). Federal agencies would follow that rule for any law, rule, or regulation unless a statute explicitly says otherwise. It would not reclassify past tax exemptions as federal aid for periods before enactment.

Sponsors & CoSponsors

Sponsor

Lankford, James [R-OK]

OK • R

Cosponsors

  • Sen. Lee, Mike [R-UT]

    UT • R

    Sponsored 4/10/2025

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 4/10/2025

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 4/10/2025

  • Sen. Schmitt, Eric [R-MO]

    MO • R

    Sponsored 5/1/2025

Roll Call Votes

No roll call votes available for this bill.

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