No Foreign Election Interference Act
Officially: “No Foreign Election Interference Act” Read the full text
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1Short title
This section would let the Act be called the 'No Foreign Election Interference Act.'
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1. Short title This Act may be cited as the No Foreign Election Interference Act .
2Penalties with respect to contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals
This section would add a new tax penalty and a new way to lose tax-exempt status for tax-exempt organizations that combine foreign money with political giving. It would add a new provision to the tax code (section 6720D) under which a 'specified tax exempt organization' that makes a 'disqualified political committee contribution' would have to pay a penalty equal to twice the amount of that contribution. A 'specified tax exempt organization' is an organization recognized as tax-exempt under section 501(c) whose gross receipts for the tax year are at least $200,000, or whose assets at the end of the tax year are at least $500,000. A 'disqualified political committee contribution' is a contribution that a section 501(c) organization makes to a political committee, as political committee is defined under the Federal Election Campaign Act of 1971, where that organization received any contribution or gift from a foreign national (as foreign national is defined under the Federal Election Campaign Act of 1971) at any point during the 8 years ending on the date of the contribution to the political committee, called the testing period, except that the testing period would not reach back to any time before the date this new penalty provision becomes law. The section would also add a rule to the tax code (section 501(s)) under which any section 501(c) organization that makes more than 2 disqualified political committee contributions would stop being exempt from tax starting with any tax year ending on or after the date of its third such contribution. To keep an organization from avoiding the twice-the-contribution penalty by losing its exemption this way, the section further provides that an organization that is not tax-exempt only because of this new revocation rule would still be treated as a specified tax exempt organization, and so would still owe the penalty, with respect to its first 3 disqualified political committee contributions. The section would also add a listing for the new penalty provision to the tax code's table of sections. These changes would apply to contributions made on or after January 1, 2026, by organizations described in section 501(c) of the Internal Revenue Code of 1986.
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2. Penalties with respect to contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals (a) In general Any specified tax exempt organization that makes any disqualified political committee contribution shall pay a penalty equal to twice the amount of such contribution. (b) Disqualified political committee contribution For purposes of this section— (1) In general The term disqualified political committee contribution means, with respect to any organization described in section 501(c), any contribution made by such organization to a political committee (as defined in section 301 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 )) if such organization received, during any testing period, any contribution or gift (within the meaning of section 6033(b)(5)) from a foreign national (as defined in section 319(b) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30121(b) )). (2) Testing period The term testing period means, with respect to any contribution by an organization described in section 501(c), the 8-year period ending on the date of such contribution, except that such period shall not include any period before the date of the enactment of this section. (c) Specified tax exempt organization For purposes of this section— (1) In general The term specified tax exempt organization means, with respect to any taxable year, any organization described in section 501(c) and exempt from tax under section 501(a) if— (A) the gross receipts of such organization for such taxable year equal or exceed $200,000, or (B) the assets of such organization (determined as of the close of such taxable year) equal or exceed $500,000. (2) Coordination with revocation of tax exempt status by reason of making disqualified political committee contributions An organization which is not exempt from tax under section 501(a) solely by reason of section 501(s) shall be treated for purposes of paragraph (1) of this subsection as exempt from tax under section 501(a) with respect to the application of this section to the first 3 disqualified political committee contributions of such organization. . (b) Revocation of exempt status upon third disqualified political committee contribution Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Revocation of exempt status of certain organizations that accept contributions from foreign nationals and make contributions to political committees Any organization described in subsection (c) which makes more than 2 disqualified political committee contributions (as defined in section 6720D(b)) shall not be exempt from taxation under subsection (a) for any taxable year ending on or after the date of the third such contribution. . (c) Clerical amendment The table of sections for part I of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item: Sec. 6720D. Contributions to political committees from certain tax exempt organizations that accept contributions from foreign nationals. . (d) Effective date The amendments made by this subsection shall apply with respect to contributions made on or after January 1, 2026, by organizations described in section 501(c) of the Internal Revenue Code of 1986.
Where it is
In the House.