Lujan Grisham Statement on Treasury Proposed Guidance for Tax-Exempt Social Welfare Organizations

Press Release

U.S. Rep. Michelle Lujan Grisham (NM-01), a member of the House Committee on Oversight and Government Reform, released the following statement after the U.S. Treasury Department issued proposed guidance regarding the political campaign activities of tax-exempt social welfare organizations under section 501(c)(4) of the Internal Revenue Code:

"Almost four years after the Citizens United decision, which opened the door for tax-exempt social welfare groups to spend hundreds of millions of dollars on political campaign activities while hiding their donors, the U.S. Treasury has finally issued proposed guidance to reduce ambiguity in the current system.

"This proposal will undoubtedly elicit more debate and is a step in the right direction, but it does not ensure that the IRS is following the original intent of Congress, which created tax-exempt social welfare organizations to "operate exclusively for the promotion of social welfare.' The guidance could still allow social welfare organizations to take advantage of a loophole and use up to 49% of their expenditures on political campaign activities while keeping their donors secret.

"My bill, the 501(c)(4) Reform Act, would ensure that social welfare organizations focus on their social welfare mission by prohibiting these groups from spending money on political campaign activities.

"While I recognize that the Treasury is seeking to roll back the harmful consequences of the Citizens United decision, by not going far enough, these rules can create confusion and foster abuse. The Treasury Department should uphold the original intent of Congress: Exclusively should mean exclusively and money used for campaign purposes should be disclosed and kept separate from money used for the promotion of social welfare."

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