What This Bill Does · Plain English
Summary · Congress.gov
Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act or the FENCE Act This bill denies federal tax-exempt status under Internal Revenue Code (IRC) Section 501(c)(3) to an organization that engages in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals that such organization knows or reasonably should know are unlawfully present in the United States. However, the bill does not require an organization to verify an individual’s citizenship or immigration status, or act in violation of religious beliefs. As background, an organization may be exempt from federal income tax under IRC Section 501(c)(3) if it is organized and operated exclusively (1) for religious, charitable, scientific, literary, or educational purposes; (2) for testing for public safety; (3) for the prevention of cruelty to children or animals; or (4) to foster national or international amateur sports competition (subject to limitations). However, under current law, a tax-exempt organization may not be organized for an illegal purpose or engage in substantial illegal activity.
Action Timeline
2025-02-10
Read twice and referred to the Committee on Finance.
2025-02-10
Introduced in Senate
Frequently Asked Questions
Did S.497 pass?
S.497 is still alive. Current stage: COMMITTEE. Pass likelihood: 29%.
What does S.497 do?
Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act or the FENCE Act This bill denies federal tax-exempt status under Internal Revenue Code (IRC) Section 501(c)(3) to an organization that engages in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals that such organization knows or reasonably should know are unlawfully present in the United States. However, the bill does not require an organization to verify an individual’s citizenship or immigration status, or act in violation of religious beliefs. As backgr…
Who sponsored S.497?
S.497 was sponsored by Bill Hagerty (R-Tennessee).
Full Bill Text
119 S497 IS: Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act U.S. Senate 2025-02-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 497 IN THE SENATE OF THE UNITED STATES February 10, 2025 Mr. Hagerty introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify eligibility for 501(c)(3) status. 1. Short title This Act may be cited as the Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act or the FENCE Act . 2. Organizations harboring aliens unlawfully present in the United States (a) In general Paragraph (3) of section 501(c) of the Internal Revenue Code of 1986 is amended— (1) by striking animals, no part and inserting “animals— (A) no part , (2) by striking individual, no substantial part and inserting “individual, (B) no substantial part , (3) by striking subsection (h)), and which and inserting “subsection (h)), (C) which , (4) by striking the period at the end and inserting , and , and (5) by adding at the end the following: (D) which does not engage in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals which such corporation, community chest, fund, or foundation knows or reasonably should know to be unlawfully present in the United States. Subparagraph (D) shall not be construed to require proof of citizenship or verification of an individual’s immigration status to be presented, or to require a religious organization to act in violation of its religious beliefs. . (b) Effective date The amendments made by this section shall take effect upon the date of the enactment of this Act.
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