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119-s-497119th CongressWALLET

FENCE Act

Sponsored By: Senator Hagerty, Bill [R-TN]

Introduced

Summary

Would narrow who qualifies for 501(c)(3) tax-exempt status by barring charities that repeatedly provide material support to people unlawfully present in the United States. The bill reorganizes section 501(c)(3) and inserts a new subparagraph (D) that would disqualify organizations that, knowing or reasonably should know, engage in a pattern or practice of giving financial assistance, benefits, services, or other material support to such individuals.

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  • Nonprofit organizations: Groups that routinely help individuals unlawfully present could lose or be denied 501(c)(3) status if the activity meets the bill's "pattern or practice" standard. This changes one of the eligibility tests used by the IRS.
  • Religious organizations: The text says it would not require proof of citizenship or immigration status and would not force a religious organization to act against its beliefs.
  • Individuals unlawfully present: Charities may reduce or alter assistance to avoid risking tax-exempt status, which could affect access to services.
  • Timing: The change would take effect on the date of enactment.

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Bill Overview

Analyzed Economic Effects

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

Limits on charities' tax-exempt status

If enacted, this bill would make more charities ineligible for 501(c)(3) tax-exempt status. It would bar organizations that engage in a pattern or practice of giving money, benefits, services, or other material support to people the organization knows or reasonably should know are unlawfully present in the United States. The bill says charities would not have to demand proof of immigration status. It also says religious groups would not be forced to act against their beliefs. The rule would take effect on the date of enactment.

Sponsors & CoSponsors

Sponsor

Hagerty, Bill [R-TN]

TN • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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