US considers order against nonprofit organizations — Jerusalem Post

The administration of US President Donald Trump is considering issuing an executive order that would allow certain nonprofit organizations to be designated as having ties to terrorism and immediately suspend their tax-exempt status. The Jerusalem Post reported this, citing The Wall Street Journal and informed sources.

According to WSJ, officials have been working on the document for several months. At the same time, the draft is still being discussed, so it may not be finalized or submitted to the president for signature. It is currently unknown how many organizations and which specific entities could fall under its scope.

Suspension of tax status

The potential executive order would rely on Section 501(p) of the US Tax Code, which has not previously been used in this way. According to the publication, this mechanism would allow the president to immediately suspend the tax status of organizations, which could significantly complicate their operations.

Such a procedure would operate much faster than the usual US Internal Revenue Service process for sanctions against nonprofit organizations. It normally provides for a detailed review, formal notification, and the right to challenge the decision in court.

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White House position and previous steps

A White House spokesperson told WSJ that discussions of a possible executive order were speculative. In April, the White House told reporters that no such decision was being prepared or considered. The US Treasury Department and the Internal Revenue Service did not respond to the newspaper's requests for comment.

Last year, Trump signed a national security memorandum directing the Internal Revenue Service to ensure that organizations with tax-exempt status were not involved in domestic terrorism or political violence. In September, he also designated antifa as a domestic terrorist organization by executive order.

The US Department of Justice charged the Southern Poverty Law Center with donor fraud, saying that the organization secretly paid informants. The Southern Poverty Law Center denies these allegations. Outgoing Texas Governor Greg Abbott asked Treasury Secretary Scott Bessent to suspend the tax status of the Council on American-Islamic Relations, alleging the organization's ties to terrorist networks. CAIR rejected these claims.