Cornyn, King Introduce Bill to Revoke Tax-Exempt Status of Organizations Bankrolling Terrorists

WASHINGTON – U.S. Senators John Cornyn (R-TX) and Angus King (I-ME) today introduced legislation that would terminate the tax-exempt status of groups who provide material support, such as finances, services, or training, to terrorist organizations:

“As tensions rise across the globe, terrorism must be rooted out at its source: money,” said Sen. Cornyn. “This commonsense legislation would revoke the tax-exempt status of groups who provide financial support or resources to designated terrorist organizations, ensuring no one who stands for evil receives a tax break.”

“Across the world, we are witnessing terrorist groups, fueled by intolerance and financial support, use violence and intimidation against civilians to sow chaos and disrupt the geopolitical order,” said Sen. King. “This bill will ensure that groups like Hamas, Hezbollah, and Al Qaeda are cut off from critical resources as organizations and individuals looking to support these extremist organizations will no longer receive tax-exempt status. Thanks to Senator Cornyn, and my colleagues in the House, for choosing good over evil.”

Introduced by Representatives David Kustoff (TN-08) and Brad Schneider (IL-10), companion legislation passed the House of Representatives this week 382-11.

Background:

Under current U.S. tax code, an entity’s tax-exempt status is suspended if it is designated by the U.S. Department of State as a terrorist organization, which includes groups like Hamas, Hezbollah, and Al Qaeda. This legislation would extend the current prohibition to include organizations that provide material support or resources, such as finances, services, or training, to a terrorist organization within the past three years.