Two New Bills Target Migrant Serving Nonprofits As The Mean Season Continues
A PR from Senator Bill Haggerty:
“It’s absurd that our federal government has been giving tax exemptions and federal funding to NGOs that have helped facilitate record illegal immigration and carry out the far-left’s agenda, while cloaked as charities,” said Senator Hagerty. “President Trump’s executive order requiring a review of federal funding to NGOs will expose this malpractice that has occurred for too long. I’m pleased to introduce this legislation that will augment the President’s work to hold these NGOs accountable by revoking their tax-exempt statuses.”
Haggerty’s bill in the Senate aims to revoke tax exemption for charities that feed, shelter, or in just about any other fashion lend a hand to unauthorized migrants. Here is what 501(c)(3) would look like if the bill passed:
(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals –
(A) no part of the net earnings of which inures to the benefit of any private shareholder or individual,
(B) no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)),
(C) which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and
(D) which does not engage in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals which such corporation, community chest, fund, or foundation knows or reasonably should know to be unlawfully present in the United States.
Subparagraph (D) shall not be construed to require proof of citizenship or verification of an individual’s immigration status to be presented, or to require a religious organization to act in violation of its religious beliefs.’’
In the House, a new section 501(g) would revoke tax exemption if a charity does not certify that it provides no assistance to migrants — which assistance is sometimes referred to as “human trafficking and alien smuggling” among other things:
(1) FUTURE RECIPIENTS.—Beginning not later than 120 days after the date of the enactment of this Act, no Federal funds may be awarded to a non-profit entity unless such entity submits to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
(2) CURRENT AND PRIOR RECIPIENTS.—Not later than 60 days after the date of the enactment of this Act, each non-profit entity that is in receipt of awarded Federal funds as of the date of the enactment of this Act, or was awarded Federal funds prior to January 1, 2021, shall submit to the Director of the Office of Management and Budget a certification that the entity is in compliance with Federal law with respect to human trafficking, alien smuggling, fraud, bribery, or gratuity and has not been convicted of an offense under section 274 of the Immigration and Nationality Act (8 U.S.C. 1324). If the entity does not submit the certification, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324), the entity shall repay any such funds awarded.
. . .
(g) Denial of exemption for not meeting certain certification requirement.—
“(1) IN GENERAL.—An organization described in section 501(c) shall not be exempt from taxation under section 501(a) if such organization does not submit the certification required pursuant to section 2(a) of the ‘Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023’, or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act (8 U.S.C. 1324).
“(2) RE-APPLICATION FOR EXEMPTION.—Not sooner than one year after the date on which an organization described in section 501(c) is not exempt pursuant to paragraph (1), such organization may reapply to be exempt from taxation under section 501(a).”
darryll k. jones