# 119-s-3942: SPONSOR Act

119-s-3942, SPONSOR Act, is a 119th Congress bill sponsored by Sen. Cruz, Ted [R-TX] (R-TX); status introduced (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-3942
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3942
- Congress: 119
- Title: SPONSOR Act
- Status: introduced
- Introduced: 2026-02-26
- Sponsor: Sen. Cruz, Ted [R-TX] (R-TX)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2026-04-21

## Summary

**This bill would make tax-exempt 501(c)(3) fiscal sponsors legally accountable for certain violent or terrorist activities funded through their sponsorships.** It ties that accountability to situations where donor deductions are allowed or represented, while allowing defenses for reasonable oversight and due diligence. - 501(c)(3) fiscal sponsors: Could face criminal and civil liability if funds they receive and control are used in defined "covered activities." A presumption of sponsor responsibility exists, but sponsors can defend themselves by showing due diligence and reasonable oversight. - Donors: Donations claimed as tax-deductible under a fiscal sponsorship are specifically linked to the sponsor's potential liability when those funds are used in covered activities. - Sponsored projects and non-exempt groups: Projects that rely on a fiscal sponsor can cause the sponsoring charity to bear legal exposure if the project engages in the listed harmful activities. - Covered activities: Includes aiding or abetting acts of international terrorism tied to a designated foreign terrorist organization, violent or coercive acts meant to intimidate or interfere with someone exercising constitutional rights, and using force or blocking movement of goods to stop lawful commerce. "Intimidate" is defined as placing someone in reasonable fear of bodily harm.

## Cosponsors (1)

- Sen. Budd, Ted [R-NC] (R-NC), 2026-02-26T00:00:00.000Z

## Provisions PRIA read

- New liability for charity fiscal sponsors: cost, medium. This bill would make 501(c)(3) charities that act as fiscal sponsors face criminal and civil liability for certain sponsored activities. It would apply when a charity receives and controls funds for a non-exempt project and allows or represents that donors can take a section 170 deduction. "Covered…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-524: Coast Guard Authorization Act of 2025
- 119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- 119-s-4668: Protect College Sports Act of 2026
- 119-s-2975: PIPELINE Safety Act of 2025
- 119-s-278: Kids Off Social Media Act

## Sources
- [119-s-3942 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3942)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-524: Coast Guard Authorization Act of 2025](https://policyrisk.com/legislation/119-s-524)
- [119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-3923)
- [119-s-4668: Protect College Sports Act of 2026](https://policyrisk.com/legislation/119-s-4668)
- [119-s-2975: PIPELINE Safety Act of 2025](https://policyrisk.com/legislation/119-s-2975)
- [119-s-278: Kids Off Social Media Act](https://policyrisk.com/legislation/119-s-278)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3942 (as of 2026-04-21).