Stopping Foreign Influence in Elections Act of 2026

Higher penalties for nonprofit political gifts

If enacted, covered 501(c) groups that give money to political committees would face steep taxes and penalties. A group is covered if it must file under section 6033(a)(1) and had $200,000 or more in receipts or $500,000 or more in assets in the prior year. The first disqualified contribution would trigger a tax equal to 100% of the amount. The second would trigger a tax equal to 200% of the amount. Any later disqualified contribution would trigger a tax equal to 200% and the group would lose tax-exempt status for two years starting on the date of that contribution. Separately, the bill would impose a penalty equal to twice the disqualified contribution. A contribution is "disqualified" if the group received any money from a foreign national during the two-year testing period before the contribution; the group may rely on a donor's statement of nationality unless it knows that statement is false. These rules would apply to contributions made starting one year after enactment.