April 10, 2025
Mr. Lankford (for himself, Mr. Lee, Mr. Hawley, and Mr. Budd) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend title 1, United States Code, to clarify that certain tax exemptions are not treated as Federal financial assistance.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Safeguarding Charity Act
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Sec. 2. Federal financial assistance not to include certain tax benefits
(a) In general
Chapter 1 of title 1, United States Code, is amended by adding at the end the following new section:
9. Federal financial assistance
In the case of any organization described in subsection (c) or (d) of section 501 of the Internal Revenue Code of 1986 or any organization described in section 401(a) of such Code, for purposes of any Federal law, rule, or regulation, unless explicitly provided otherwise, the term Federal financial assistance, or any other term referring to assistance provided by the Federal government, shall not include any exemption from Federal income tax.
(b) Clerical amendment
The table of contents for chapter 1 of title 1, United States Code, is amended by adding at the end the following new item:
(c) Rule of construction
Nothing in this section or the amendments made by this section shall be construed to imply that an exemption from Federal income taxes under section 501(a) of the Internal Revenue Code of 1986 constituted assistance from the Federal government for periods before the date of the enactment of this Act.