WASHINGTON - Today, Congressman David Kustoff introduced legislation to revoke the tax-exempt status of any non-profit organization that provides material support to terrorist groups. Senator John Cornyn (TX) introduced the Senate companion bill.

"Our tax laws should never be used to subsidize or shield organizations that help terrorists,"said Rep. David Kustoff."There should be zero ambiguity and tolerance for non-profits that fund terrorists. This legislation ensures that groups providing material support to terrorist organizations lose their tax-exempt status and are held accountable. We must use every tool available to cut off support for terrorism and protect our national security."

"I'm introducing legislation to strip CAIR of its tax-exempt status because no organization who bankrolls terrorists should get a tax break, period,"said Senator Cornyn. "CAIR is a radical group of terrorist sympathizers with a long history of undermining American values and trying to unconstitutionally impose Sharia Law on Texas, which is why I stand behind Governor Abbott's decision to designate it as a foreign terrorist organization. I also call on President Trump to do so at the federal level to ensure this breeding ground for anti-American hate is starved of funding and forced to close its doors once and for all."

Background:

This bill amends the Internal Revenue Code to revoke the tax-exempt status of organizations that provide material support to terrorist groups. It defines a terrorist-supporting organization as one that provides more than a de minimis level of support to a designated terrorist organization within a three-year period.

The bill excludes lawful humanitarian aid approved by the Office of Foreign Assets Control or the State Department, with the concurrence of the Attorney General. It establishes a Treasury-led designation process that includes written notice, an opportunity to cure or contest the designation, administrative review through the IRS Independent Office of Appeals, and judicial review in federal district court, ensuring due process while protecting national security.

Read the full bill text here.

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