Bills · S 3554
IN COMMITTEE· 119TH CONGRESS
Senate BillS 3554Taxation
A bill to amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
INTRO DEC 17· LAST ACTION DEC 17
READING
6MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it aims to reduce the financial resources available to terrorist groups by targeting the organizations that support them. If it becomes law, it would ensure that entities providing "material support" to designated terrorist organizations cannot benefit from U.S. tax exemptions. This could make it harder for terrorist groups to fund their operations and activities, thereby enhancing national security.
Without this bill, organizations found to be supporting terrorism could potentially continue to receive tax benefits, meaning U.S. taxpayers could be indirectly subsidizing activities that support designated terrorist groups. The bill addresses a concern that current law might not adequately prevent such financial flows, providing a new tool to counter terrorism financing by removing a key financial incentive for supporting these groups.
KEY PROVISIONS
4AI-extractedPROVISION 01
Terminates the tax-exempt status of any organization designated by the Secretary of the Treasury as a "terrorist supporting organization."
Prevents financial benefits and indirect taxpayer subsidies from going to organizations that aid terrorism.
PROVISION 02
Defines a "terrorist supporting organization" as any organization that has provided more than a trivial amount of "material support or resources" to a designated terrorist organization within the last three years, with specific exceptions for approved humanitarian aid.
Establishes clear criteria for designation, while protecting legitimate charitable and humanitarian efforts.
PROVISION 03
Requires the government to provide written notice to an organization before designation and offer a 90-day period to either dispute the claim, make efforts to reclaim the support and certify future non-support, or challenge a decision to withhold descriptive information for national security reasons.
Ensures due process, transparency, and an opportunity for organizations to defend themselves or cease problematic activities before losing their tax-exempt status.
PROVISION 04
Establishes that designations can be reviewed by the IRS Independent Office of Appeals and that U.S. District Courts have exclusive jurisdiction to review certain determinations, including final designations and the withholding of classified information.
Provides avenues for administrative and judicial oversight, allowing organizations to appeal designations and ensuring accountability in the process.
SPONSORSHIP
1 + 2
R· Texas
YRS IN OFFICE
23
BILLS LED
137
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 2 IND 0
ACTION TIMELINE
2 EVENTSDEC 17
Introduced in Senate
DEC 17
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 3554
Congress119th
StatusIn Committee
IntroducedDec 17, 2025
Last actionDec 17, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED DEC 17, 2025
Senate BillS 3554Taxation
A bill to amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
INTRODUCED DEC 17, 2025· LAST ACTION DEC 17, 2025
PASSAGE CHANCES
—%
READING
6 min
COSPONSORS
2
COMPLEXITY
Moderate
