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HR 9771

Stopping Foreign Influence in Elections Act of 2026

119th Congress Introduced by Nicole Malliotakis

The bill imposes penalties on certain tax-exempt organizations that make disqualified political contributions funded by foreign sources, including doubling the contribution amount

Introduced in House
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Bill Summary · HR 9771

What this bill seeks to do

  • Title: Stopping Foreign Influence in Elections Act of 2026 (HR 9771)
  • Purpose: Amend the Internal Revenue Code to impose penalties on certain tax-exempt organizations that make political contributions to disqualified political committees when those contributions come from foreign nationals or rely on foreign funding. The measure targets the flow of foreign money into U.S. political committees by imposing penalties on specific tax-exempt entities.

Key provisions and changes

  • Creation of new penalty provision

    • Adds a new Sec. 6720D to Part I of Subchapter B, Chapter 68 of the Internal Revenue Code.
    • Target: Specified tax-exempt organizations that make disqualified political committee contributions.
    • Penalty: The contributing tax-exempt organization must pay a penalty equal to twice the amount of the disqualified contribution.

  • Definition of disqualified political committee contribution

    • A disqualified political committee contribution is a contribution from an organization described in 501(c) that is made to a political entity (including political committees under FECA or 501(c)(4) organizations) and during the testing period received any contribution or gift from a foreign national (as defined by FECA).
    • Testing period: A 2-year period ending on the date of the contribution, excluding any period before enactment.
    • Reliance on donor representation: An organization may rely on a donor’s representation of nationality unless the organization knows or should know that the representation is false.

  • Scope of affected organizations

    • Applies to “specified tax-exempt organizations” that file annual returns under 6033(a)(1) in a year where they have gross receipts of at least $200,000 or assets of at least $500,000 (as of the preceding tax year).
    • Specified organizations include those described in 501(c) that are required to file annual returns due to size thresholds.

  • Tax treatment of organizations making disqualified contributions

    • Subsection (s) added to Section 501 with several consequences:
    • If the first disqualified contribution is made by such an organization, the organization owes a tax equal to 100% of that contribution.
    • If the second disqualified contribution is made by such an organization, the organization owes a tax equal to 200% of that contribution.
    • If a subsequent disqualified contribution is made, the organization owes 200% of the contribution and loses federal tax-exempt status for a 2-year period beginning on the date the contribution is made.

  • Clarifications

    • The bill includes a 2-year lookback for counting disqualified contributions and provides a rule to exclude any pre-enactment contributions when determining the number of such contributions for an organization that has not made disqualified contributions in a 2-year window.

  • Effective date

    • The amendments apply to contributions made after a date that is one year after enactment of the Act.

Who or what would be affected

  • Affected entities: 501(c) organizations that are tax-exempt and have to file annual information returns (as defined by the size thresholds in the bill).
  • Affected activities: Any disqualified political committee contributions made by these tax-exempt organizations to political committees or political entities (including 501(c)(4) organizations) that have received funds from foreign nationals.
  • Consequences: Financial penalties (double the amount of the disqualified contribution) and potential loss of tax-exempt status for certain disqualified contributions after the second offense.

Procedural and timeline aspects

  • Introduction and referral
    • Introduced July 18, 2026 by Rep. Malliotakis and referred to the House Ways and Means Committee.
  • Effective date
    • The new penalties and definitions would apply to contributions made after one year from enactment.
  • Compliance considerations
    • Tax-exempt organizations must monitor donor nationality representations and the sources of funding to avoid triggering penalties.
    • The bill allows reliance on donor nationality representations unless false information is known or reasonably should be known to be false.

Bottom-line assessment

  • The bill is designed to deter foreign influence in U.S. elections by financially penalizing tax-exempt organizations that improperly funnel foreign-derived contributions into political campaigns or committees.
  • It introduces a tiered penalty regime (100% of the contribution for the first violation; 200% for the second and subsequent violations) and imposes potential loss of tax-exempt status for repeated violations.
  • The approach uses the tax code as an enforcement mechanism, broadening oversight of funding sources for political activity and potentially increasing scrutiny of 501(c) organizations with large receipts or assets.

Compiled from official sources — confirm details with the bill’s official record.

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