GUARD Act
- Bill Number
- H.R. 8166
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-30: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-14T01:35:50Z
AI-Generated Summary
Summary of H.R. 8166: Guarding U.S. Associations from Rogue Donations Act (GUARD Act)
Purpose
The bill aims to protect U.S. tax-exempt organizations from receiving donations from individuals linked to countries considered foreign adversaries, by stripping tax-exempt status from organizations that accept such funds. This is intended to safeguard national security interests.
Key Provisions
- Targeted Organizations: Applies to nonprofits classified under Section 501(c)(3) (charities, educational groups) and Section 501(c)(4) (social welfare organizations) of the Internal Revenue Code.
- Trigger for Loss of Status: Any contribution or gift (as defined in tax law for reporting purposes) from a citizen or national of a foreign adversary causes the organization to lose tax-exempt status for the taxable year ending on or after receipt.
- Definition of Foreign Adversary:
- People's Republic of China (including Hong Kong and Macau).
- Republic of Cuba.
- Islamic Republic of Iran.
- Democratic People's Republic of Korea (North Korea).
- Russian Federation.
- Any other country designated by the Secretary of the Treasury, in consultation with the Secretary of State, if it threatens U.S. national security.
- Effective Date: Applies to contributions or gifts received after the bill's enactment.
Significant Changes to Existing Law
- Adds a new subsection (s) to Internal Revenue Code Section 501, which previously granted tax-exempt status based on organizational purpose without restrictions on donor nationality.
- Introduces an automatic denial of exemption upon receipt of even a single prohibited donation, with no exceptions or thresholds specified.
Potential Impacts
- On Organizations: Tax-exempt groups could face sudden loss of exemption, owing taxes on income and losing donor tax deductions, potentially disrupting operations and funding.
- On Citizens and Donors: U.S. taxpayers donating to affected organizations lose tax benefits; foreign nationals from listed countries may be deterred from supporting U.S. nonprofits.
- On Government Agencies: Increases workload for the IRS to monitor donations and enforce revocations; involves coordination between Treasury and State Departments for designations.
- On International Relations: Could strain ties with listed countries by restricting their citizens' philanthropy to U.S. groups, signaling U.S. security concerns.
Main Stakeholders Affected
- Tax-Exempt Nonprofits: Especially charities and advocacy groups reliant on diverse donations.
- Donors: U.S. individuals, businesses, and foreign nationals from adversary countries.
- U.S. Government: IRS (enforcement), Treasury and State Departments (designations).
- Citizens of Adversary Countries: Limited ability to support U.S. causes tax-efficiently.
Notable Legal, Constitutional, or Political Implications
- Legal: May lead to IRS audits and litigation over donation tracing and "citizen/national" verification; no waiver or cure provision for inadvertent receipts.
- Constitutional: Potential challenges under First Amendment (free association/speech) for restricting donor-organization links, or Fifth Amendment (due process) for automatic revocation without appeal process specified.
- Political: Targets specific nations amid U.S. geopolitical tensions, allowing executive flexibility for future additions via administrative determination.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-30: Referred to the House Committee on Ways and Means.
- 2026-03-30: Introduced in House
- 2026-03-30: Introduced in House
Bill Versions
- Guarding U.S. Associations from Rogue Donations Act — issued 2026-03-30 — PDF (3 pages)