H.R. 9771
Stopping Foreign Influence in Elections Act of 2026
Summary:
• The "Stopping Foreign Influence in Elections Act of 2026" amends the Internal Revenue Code to impose financial penalties on tax-exempt organizations that make contributions to political entities after having accepted contributions from foreign nationals
• Penalties escalate with repeated violations: a tax equal to 100% of the contribution for a first offense, 200% for a second offense, and 200% plus loss of tax-exempt status for 2 years for subsequent offenses
• A separate penalty of twice the contribution amount is also imposed under a new IRC Section 6720D on qualifying tax-exempt organizations with gross receipts of at least $200,000 or assets of at least $500,000
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• Penalties escalate with repeated violations: a tax equal to 100% of the contribution for a first offense, 200% for a second offense, and 200% plus loss of tax-exempt status for 2 years for subsequent offenses
• A separate penalty of twice the contribution amount is also imposed under a new IRC Section 6720D on qualifying tax-exempt organizations with gross receipts of at least $200,000 or assets of at least $500,000
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