SPONSOR Act

[AI summary unavailable — showing source text] [Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 3942 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 3942 To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES February 26, 2026 Mr. Cruz (for himself and Mr. Budd) 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 provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor. 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 ``Stop Proxy Organizations Nurturing Subversive Operations and Riots Act'' or the ``SPONSOR Act''. SEC. 2. LIABILITY OF TAX-EXEMPT FISCAL SPONSORS FOR SPONSORED ACTIVITIES. Section 501 of the Internal Revenue Code of 1986 is amended by adding a…