In a move to safeguard the independence of tax-exempt organizations, Senator Marco Rubio of Florida is set to introduce a bill called the Safeguarding Charity Act. This legislation comes in response to recent court decisions that have subjected private organizations to federal restrictions due to their tax-exempt status. Rubio’s bill aims to protect civic organizations such as churches, schools, and charities from burdensome federal regulations.
Rubio expressed his concern over the court decisions that could potentially impose onerous federal regulations on tax-exempt organizations. He believes that these organizations play a crucial role in our communities and should not be subjected to politicized battles with the government. The Safeguarding Charity Act aims to prevent such battles and protect the independence of these organizations.
The recent court rulings have classified tax-exempt status as a form of “federal financial assistance.” This classification poses a risk to various tax-exempt organizations that do not currently receive federal financial aid. Private K-12 schools, higher education institutions, houses of worship, charitable organizations, foundations, labor unions, social welfare organizations, and many more could face penalties if they fail to comply with politically charged regulations.
The implications of these court decisions could be far-reaching. Single-sex private schools, churches, and charities may face challenges in maintaining their policies and practices. For instance, a private Catholic all-girls school might be compelled to admit a biological male who identifies as a transgender female.
Rubio’s bill aims to prevent hundreds of thousands of tax-exempt organizations from unexpectedly falling under burdensome federal statutes and regulations. Compliance costs could be substantial, and violations of relevant statutes could lead to the loss of tax-exempt status.
The legislation has garnered support from other Republican lawmakers. Senators Mike Braun, JD Vance, and Marsha Blackburn are co-sponsoring the bill, while House Representative Greg Steube has introduced a companion bill in the House. Steube emphasized the need for Congress to codify that tax-exempt organizations should not be considered recipients of federal financial assistance, especially due to recent judicial decisions targeting religious schools.
The introduction of this bill underscores the ongoing debate surrounding the independence and regulatory oversight of tax-exempt organizations. As the political landscape continues to evolve, the fate of these organizations hangs in the balance. The Safeguarding Charity Act may prove to be a crucial step in protecting the vital role these organizations play in our communities.
Jamie Joseph is a writer covering politics and is the lead for digital coverage of the Senate. Stay updated on the latest from the 2024 campaign trail, exclusive interviews, and more political content by subscribing to this newsletter.
