Safeguarding Charity Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1428 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1428

   To amend title 1, United States Code, to clarify that certain tax 
      exemptions are not treated as Federal financial assistance.


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                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2025

     Mr. Lankford (for himself, Mr. Lee, Mr. Hawley, and Mr. Budd) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

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                                 A BILL


 
   To amend title 1, United States Code, to clarify that certain tax 
      exemptions are not treated as Federal financial assistance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safeguarding Charity Act''.

SEC. 2. FEDERAL FINANCIAL ASSISTANCE NOT TO INCLUDE CERTAIN TAX 
              BENEFITS.

    (a) In General.--Chapter 1 of title 1, United States Code, is 
amended by adding at the end the following new section:

``SEC. 9. FEDERAL FINANCIAL ASSISTANCE.

    ``In the case of any organization described in subsection (c) or 
(d) of section 501 of the Internal Revenue Code of 1986 or any 
organization described in section 401(a) of such Code, for purposes of 
any Federal law, rule, or regulation, unless explicitly provided 
otherwise, the term `Federal financial assistance,' or any other term 
referring to assistance provided by the Federal government, shall not 
include any exemption from Federal income tax.''.
    (b) Clerical Amendment.--The table of contents for chapter 1 of 
title 1, United States Code, is amended by adding at the end the 
following new item:

``9. Federal financial assistance.''.
    (c) Rule of Construction.--Nothing in this section or the 
amendments made by this section shall be construed to imply that an 
exemption from Federal income taxes under section 501(a) of the 
Internal Revenue Code of 1986 constituted assistance from the Federal 
government for periods before the date of the enactment of this Act.
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