End Dark Money Act

Bill Number

H.R. 2498

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-03-31: Referred to the House Committee on Ways and Means.

Last Updated

2025-10-09T08:05:26Z

AI-Generated Summary

Purpose

The "End Dark Money Act" (H.R. 2498) aims to remove a funding restriction on the Internal Revenue Service (IRS), enabling it to investigate and disclose political activities by certain nonprofit organizations. This promotes greater transparency in how these groups engage in political spending, often referred to as "dark money" because it can be hidden from public view.

Key Provisions

• Short Title: The bill is officially named the "End Dark Money Act."
• Repeal of Restriction: It nullifies Section 123 of the Financial Services and General Government Appropriations Act, 2024 (part of Public Law 118-47), specifically for fiscal year 2025. Section 123 had prohibited the IRS from using appropriated funds to target or require additional reporting on the political activities of nonprofits, such as 501(c)(4) social welfare organizations.

Significant Changes to Existing Law

• This repeal lifts a one-year ban on IRS funding for enforcement actions related to nonprofit political transparency, reversing a protection that limited IRS scrutiny of groups involved in election-related spending.
• It restores the IRS's ability to use its budget for audits, investigations, or disclosure requirements on nonprofits' political expenditures, which were curtailed to prevent perceived overreach by the agency.

Potential Impacts

• On Government Agencies: The IRS could increase oversight of nonprofit political activities, potentially leading to more audits and enforcement actions, which might strain agency resources but enhance compliance with tax laws.
• On Citizens: Greater public access to information about nonprofit political spending could improve voter awareness and reduce undisclosed influence in elections, fostering trust in the democratic process.
• On International Relations: Minimal direct impact, though it could indirectly affect U.S.-based nonprofits with global operations by increasing domestic scrutiny of their funding sources.

Main Stakeholders Affected

• Nonprofit Organizations: Particularly 501(c)(4) groups (social welfare organizations allowed to engage in some political activity without full disclosure), which may face heightened IRS examination and reporting requirements.
• IRS and Taxpayers: The agency gains flexibility in fund use, while taxpayers could see better accountability for how tax-exempt entities spend on politics.
• Political Campaigns and Donors: Entities relying on anonymous nonprofit funding might experience reduced ability to channel "dark money" into elections.
• Voters and Advocacy Groups: Benefit from potential transparency, aiding efforts to track political influence.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces IRS authority under existing tax code provisions (e.g., Section 501(c) of the Internal Revenue Code) to regulate nonprofit political involvement, potentially leading to more litigation over disclosure rules and First Amendment rights to free speech and association.
• Constitutional: Could spark debates on balancing transparency with privacy and free expression protections, as courts have previously struck down overly broad IRS regulations on political speech (e.g., in cases like Citizens United v. FEC).
• Political: As a targeted repeal in appropriations law, it highlights ongoing partisan divides over campaign finance reform, with supporters viewing it as anti-corruption and opponents as risking IRS politicization; its passage would signal congressional intent to prioritize election integrity in fiscal policy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Crow, Jason [D-CO-6]

Cosponsors (2)

Rep. Williams, Nikema [D-GA-5], Rep. Tokuda, Jill N. [D-HI-2]

Recent Actions

• 2025-03-31: Referred to the House Committee on Ways and Means.
• 2025-03-31: Introduced in House
• 2025-03-31: Introduced in House

Bill Versions

• End Dark Money Act — issued 2025-03-31 — PDF (2 pages)