Creates a new IRS penalty for certain tax-exempt 501(c) nonprofits that donate to political committees after receiving any foreign-national money within an eight-year window. The penalty is 2x the contribution amount, and repeated violations can trigger loss of tax-exempt status. Applies to contributions made on or after January 1, 2026, if enacted.
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No Foreign Election Interference Act is a House bill in committee. The latest recorded action: Referred to the House Committee on Ways and Means.
Latest action on H.R. 2265: Referred to the House Committee on Ways and Means.
Who this affects: The bill mainly affects larger tax-exempt 501(c) nonprofits that both receive any money or gifts from foreign nationals and also donate to political committees (like PACs) under federal campaign-law definitions. It also affects political committees that receive donations from these nonprofits, and the IRS, which would administer the penalty and exemption-revocation rules.
Why this matters: The bill tries to reduce the risk that foreign-national money ends up indirectly supporting U.S. political committees through tax-exempt nonprofits. It does this by attaching steep tax penalties—and the possibility of losing tax-exempt status—to certain political-committee donations when the donating organization has taken any foreign-national money in the defined look-back window. How much this changes real-world political spending or nonprofit behavior is uncertain and would depend on how many organizations are covered and how the IRS enforces the rules.
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