Ending Tax Breaks for Terrorist Groups

Official: To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.

IntroducedDecember 17, 2025

Why This Matters

This bill stops organizations that support terrorism from receiving tax breaks, making it harder for them to operate financially. It aims to hold these groups accountable and prevent them from benefiting from tax-exempt status.

If you donate to a group that supports terrorism, that organization could lose its tax-exempt status.

Affects: Organizations that provide support to terrorist groups and their donors.

What changes is this bill making?

1. This bill ends tax-exempt status for organizations that support terrorism. 2. It allows the government to designate groups as terrorist supporting organizations. 3. Organizations can lose their tax-exempt status if they provide material support to terrorists. 4. The bill requires the government to notify organizations before designating them as terrorist supporters. 5. Humanitarian aid approved by the government is not included in this definition.

Who is affected?

Organizations that provide support to terrorist groups and their donors.